The Swedish Ministry of Finance, Finansdepartementet, has introduced a series of reforms concerning the supervision of payment transactions in the gambling industry.
The new changes, subject to review by the European Commission (EC), would grant Sweden’s gambling inspectorate Spelinspektionen greater power in terms of monitoring and restricting financial transactions in the sector.
Spelinspektionen to Penalize PSPs Transacting with Unlicensed Operators
The Finance Ministry made the reforms with the main goal of providing stronger protection for the country’s online gambling market. It is seeking to have the new changes approved into law by July 2023.
Under the amendments, Spelinspektionen would have direct authority to impose penalties on payment service providers (PSP) found to facilitate payment transactions with gambling firms operating without a license in Sweden.
To avoid penalties and ensure they are transacting only with licensed operators, PSPs would be required to conduct new due-diligence measures when processing payments for online gambling platforms.
New Powers to be Reviewed Bi-annually
Spelinspektionen will need to inform the Swedish Tax Agency of any enforcement actions taken against PSPs for transacting with unauthorized operators. The agency’s expanded regulatory powers will undergo a bi-annual review to be conducted by a “Council for the Gambling Market”.
The Council would be comprised of the Finansdepartementet, the Tax Agency, the Public Health Authority, the Consumer Agency, Swedish Police, and the Financial Supervisory Authority.
