Gambling in Sweden: The Pace of Online Gambling Development in 2020-2021
4.1. The Cost of Permits
Gambling in Sweden is a promising investment area. Its attractiveness has increased dramatically at the beginning of this year, due to some changes in local legislation.
The law eliminated the monopoly, introduced transparent rules for interaction, and opened the way for small and medium-sized businesses. You just need to launch your online project using Win-Win Casino and start making money tomorrow.
Gambling in Sweden was popular long before the formation of modern civilization:
- Recent archaeological excavations have revealed rare objects dating back to 200 AD. According to historians, cards appeared later (around the 15th century).
- The first land-based casino began operating in the country in the 18th century. It included a traditional set of table games. For several decades, gambling establishments were opened everywhere. They were incredibly popular among local residents.
- Such a promising business was banned in the early 19th century in Europe. The main reason was the fears of church officials due to the “loss of morality” of their parishioners. The prohibition lasted less than a century and was completely eliminated at the beginning of the 20th century. During this period, the first national lottery appeared. It continues to function even today.
- Good profits from gambling are associated with an increased demand for sweepstakes in the 20th century. The European continent was swept by the wave of popularity of horse racing, which became a cultural phenomenon later.
- Around the same time, the Swedish gambling industry was replenished with such novelties as lotto and full-fledged gambling halls. The legalization of all types of gambling occurred at the end of the 90s of the 20th century.
The draft law on legal regulation entered into force on January 1, 2019. It was developed in accordance with European norms and standards and. The document is designed to regularize the gambling business in the country.
According to this law, the entire gambling industry is divided into three independent areas:
- The public sector.
- Sector for public purposes.
- Competitive industry.
Potential investors are especially interested in the third direction. It opens up great opportunities for all types of gambling, including betting. Businessmen can create a ground-based establishment or focus on an online business.
According to experts, the adoption of this law will affect the gambling industry of the Scandinavian country positively. It will destroy the monopoly of large concerns and attracts foreign investors and partners.
The fact that the Swedish law is consistent with European tax jurisdiction to the full today is the positive point. It will bring significant benefits to the owners of the online business since the residents of the entire European Union can become the users of the Swedish virtual resources.
Authorities are also hoping to increase budget revenues through commercial gambling companies.
The tax burden will be distributed as follows:
- Taxation. The VAT is 18%.
- License fee.
The bill entered into force at the beginning of this year. After 9 months, analytical centres have already made some assumptions about the profitability of this innovation.
The amount, € million
Total income, including:
Games of chance
Thus, the business generated €812 million in profit during the nine months of 2019. The lion's share of this sum is the revenue of virtual resources (poker, roulette, baccarat, and other casino games). This indicator makes up 40.3% of the general profitability structure.
The second promising direction is the bookmakers’ activity. Betting on sports, political, and international events brought €230.5 million (28.4% of the total sum).
The segmentation of Swedish gambling revenues illustrates the global market environment. The online business is especially profitable. Moreover, this trend will be intensified in the future. Experts predict that the income of virtual gambling will make up more than half of the total industry profitability indicator in 2020-2021.
The Swedish regulator Lotteriinspektionen deals with licensing issues. The validity term of the permit is 5 years with the possibility of extension.
There are several types of commercial licenses:
- for gambling websites;
- for bookmakers;
- for gambling activities taking place in ships in international waters;
- for land-based casinos.
The package of documents should be prepared exclusively in Swedish. It must contain information confirming the applicant data, his or her financial guarantees, and relevant working experience. The application is considered within 15 business days.
This parameter varies depending on the specific type of activity:
- Online casino services — €37.6 thousand;
- Online betting business — €37.6 thousand;
- Sale of lottery tickets — €14.1 thousand;
- Horse race betting — €3.2 thousand;
- Bingo gaming halls — €2.8 thousand.
In addition, licenses will be needed for companies providing technical services related to gambling activities. For example, a permit for ground-based slot machines maintenance (installation, inspection, minor repairs) costs €2 thousand.
Speaking of the Swedish gambling industry, it is difficult not to be reminded of the gaming content, which has occupied its own niche in the global industry. Net Entertainment, one of the largest international providers, is associated with this country.
The company is a leader in the development and testing of online slots, as well as in opening a vast number of subsidiaries operating under franchise agreements.
The NetEnt portfolio contains over a thousand slot machines, which are characterised by excellent graphics and well-thought-out gameplay.
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