Swedens new consumer protection legislation will take effect in April. Legal & Regulatory – iGB
Sweden is preparing to enact a new law designed to enhance the protection of gambling consumers, set to take effect in April of 2024.
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Sweden’s consumer protection law will take effect in April
The Swedish government has presented the proposed gambling legislation to the Swedish parliament.
According to the Swedish gambling regulatory body, Spelinspektionen, the bill seeks to combat gambling-related crime and safeguard consumers.
Penalties under the new Swedish gambling legislation
Under the proposed legislation, gambling companies that violate anti-money laundering regulations will face more severe fines. Currently, penalties for operators that violate anti-money laundering regulations are less stringent than those for violations of gambling laws.
Furthermore, licensed operators will be granted access to personal financial and health data provided by prospective customers. This measure is intended to address problem gambling.
Consumers are required to provide written confirmation before engaging in telephone gambling.
Last month, Spelinspektionen Director Camilla Rosenberg voiced her support for the proposal, which will come into force on April 1.
Legal modifications
The legal landscape for gambling in Sweden is undergoing rapid transformation.
Starting on the first of July, new vendor permits became active, granting the Swedish Gaming Authority (Spelinspektionen) greater authority to enforce rules.
The government also suggested in September to raise the gambling tax from eighteen percent to twenty-two percent of total gambling earnings. This adjustment will not become effective until next July.
However, expansion in Sweden’s regulated gambling market appears to have slowed. Total gambling earnings decreased by 0.6% year-over-year in the third quarter, following a similar pattern in the second quarter.
A recent report also indicated that illicit gambling activity in Sweden has increased tenfold since 2019.