The Swedish report suggests liberalizing the market.
Reuters reports that a Swedish government-commissioned study supports opening up the online gambling market. The findings won't be made public until Friday, but an insider has shared them with the news agency. Under current rules, only the state-owned company Svenske Spel is allowed to offer online gambling, but the report suggests this monopoly should be largely abolished.
The investigation, led by Håkan Hallstedt, was launched in 2015 and the industry has been eagerly anticipating the results. The government commissioned the report to address concerns by the European Union about Svenske Spel's monopoly. Similar to Germany, this is justified by a focus on the common good and better player protection. However, Svenske Spel is criticized for aggressive advertising, which competitors and the EU find problematic. The report also believes the continued existence of the monopoly is unjustified.
Hallstedt, who advocates for open and regulated markets, will hand over the reins to a judicial post at the end of March. This may stall the process. The industry would like to see it move forward, but it's a surprise he won't be involved in the regulatory process.
The report recommends an 18% gambling tax on winnings, which would likely form the basis of a new Swedish legislative framework. This would be good news for the industry, as several Swedish gambling companies, such as Betsson, Kindred, Mr. Green, and Cherry, have expressed interest in acquiring licenses. These companies have already declared their intention to apply for possible licenses.
The state monopoly on gambling imposed in 1934 has lost its grip in the online sector, with competitors licensed abroad dominating the market. Peter Alling from Kindred Group estimates that around 60% of the market share is held by foreign providers. Regulation could generate significant revenue for the Swedish government, as it would allow the state to set taxes. Alling adds:
"Sweden has so far failed to adapt to market reality, resulting in low growth while regulated jurisdictions and licensed providers attract customers."
Many countries struggle with the same issue: maintaining a monopoly while adhering to European law. State-provided gambling typically must prioritize player protection and curbing gambling, but online competitors often offer better conditions. State providers attempt to compete with advertising, but this only undermines the legitimacy of their monopoly and increases gambling's spread. The only way to escape this tension is to open markets and regulate the industry. This allows for continued efforts to combat problem gambling and protect minors through specific taxation and access requirements.
Meanwhile, countries like Switzerland are blocking foreign providers. However, Sweden may choose to regulate, sending a signal to Germany, where companies like Lottoland challenge state monopolies. The Swedish route could provide a solution for Germany, which has struggled to open its market due to EU regulations. Perhaps it's time, as in many other areas of politics, to emulate the Swedish example in the field of gambling.
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Source: www.onlinecasinosdeutschland.com
