Swedish Gambling Trade Body Urges Overhaul of Enforcement Approach, Citing Other Regulatory Models

STOCKHOLM, SWEDEN – The Swedish Trade Association for Online Gambling (BOS) has urged the Swedish Gambling Inspectorate (Spelinspektionen) to reconsider its enforcement approach, advocating for a model that mirrors the regulatory practices seen in finance, education, and local government.

What Happened

The Swedish Trade Association for Online Gambling (BOS) has publicly called for Sweden’s gambling regulator, Spelinspektionen, to revise its enforcement strategies. BOS suggests that the regulator draw inspiration from the Swedish Financial Supervisory Authority (FI), the Schools Inspectorate (SSI), and the Stockholm County Administrative Board to cultivate more effective long-term compliance within the licensed gambling sector. According to Gustaf Hoffstedt, Secretary General of BOS, “We believe that the licensed gambling market in Sweden would benefit if the Swedish Gambling Authority were to adopt working methods more closely aligned with those of other Swedish government agencies.”

Key Details

• BOS specifically criticizes Spelinspektionen’s sanctions policy, arguing for more proportional scaling of fines.
• The trade body points to the FI and Stockholm County, which often set sanction fees at lower percentages of their available range (below 20-27% for FI, under 5% for the County), to adjust for turnover and offense severity.
• BOS advocates for a more “system-oriented” approach to anti-money laundering (AML) supervision, similar to FI and Stockholm County’s methods.
• This proposed AML approach would focus on overarching risk assessments, governance, and procedures, evaluating a betting firm’s “complete compliance framework” rather than individual errors.
• BOS claims that 11 out of 12 Inspectorate decisions based on the 2021 AML Act were based on small samples of customer files (five-15), without considering business-wide risk assessments.
• Hoffstedt stated these changes would “lead to a more risk-based approach, which would strengthen efforts against money laundering and enhance other areas of supervision.”
• Differences of opinion between BOS and Spelinspektionen are not new, with BOS frequently vocal about Swedish regulation’s impact on channelisation rates.

Why It Matters

This call for an overhaul in enforcement approach by BOS highlights ongoing tensions between the Swedish gambling industry and its regulator. The trade body’s proposal suggests a desire for a more collaborative and nuanced regulatory environment, potentially reducing punitive measures for minor infractions in favor of a holistic compliance assessment. If adopted, such changes could significantly alter how gambling operators are supervised in Sweden, potentially leading to more flexible sanctions and a greater emphasis on operators’ overall risk management frameworks. This debate also reflects broader discussions within European gambling markets regarding the balance between strict enforcement in a high-risk industry and fostering sustainable, long-term compliance through less prescriptive methods.