According to reports in the Swedish media, Spelinspektionen, the Gambling Regulator in Sweden, has issued alerts on the risks of working with unauthorised gambling businesses to several payment service providers.
Spelinspektionen has written letters, according to Swedish media reports, to a number of payment companies to remind them that they have effectively violated Sweden’s Gambling Act by allowing unlicensed operators to use their services. The letter also says that this activity might lead to unfair competition and loss of total gambling tax revenue.
In its letter, the regulator emphasised that payment suppliers have a responsibility for gaming legislation that would prohibit the transfer of funds to or from licensed gaming operators, as it has discovered that such transactions increase the likelihood of money laundering or social issues.
Spelinspektionen has also highlighted the adverse impacts of these transactions on the Swedish gaming industry because they contribute to unfair competition and harm the viability on the market of licensed and controlled gambling companies that comply with the regulations.
The gambling industry in Sweden undergoes a period of upheaval following the market opening to private internet businesses in early 2019 and the imposition of rigorous regulatory and enforcement checks was part of the process. Unlicensed operators may endanger that regulation system, which explains the proactive strategy of the regulator.
Spelinspektionen’s role as regulatory enforcer is also jeopardised by unlicensed operators because it can’t take action against operators outside its competence.
In it’s letter, the regulator took the opportunity to point out that unlicensed operators do not have access to Spelpaus.se’s official database, which enables problem players to register their self-exclusion, thereby helping to sap efforts to promote secure and responsible gambling.