Swedish government makes gambling legislation pledge

The Swedish government has taken a step towards introducing new gambling legislation, pledging to publish a proposed regulatory framework by the end of May this year.

In a statement signed by the prime minister Fredrik Reinfeldt as well as Peter Norman, minister for financial markets with responsibility for gambling issues, the government has stated that it will act on the findings of a report published by the Swedish National Audit Office (Riskrevisionen) in June 2012.

The statement explains that following an assessment of the report, the government has concluded that there is a need for “some legislative changes,” and says that it will “return to Parliament with a proposal in order to establish a well-functioning regulatory framework.” It concedes that under the current system, the “widespread and growing” illegal gambling market is far more attractive to players, as it can offer products and payout rates which licensed operators are unable to offer.

As a result the government has ordered a report from the Swedish Gaming Board laying out the steps it has taken in order to minimise the risk of problem gambling, revealing that over a ten-year period, around 2% of the population had developed gambling problems. While this figure has not increased overall, problem gambling has become a bigger problem in some social groups.

Despite this, the report reveals that the country’s gambling market has actually declined over the past few years; while around 88% of the population gambled in some form between 1997 and 1998, this had actually declined to 70% from 2008 to 2009.

Having admitted that current safeguards against addiction “are not effective enough to counteract this development,” the government has also commissioned the National Board of Health and Welfare (Socialstyrelsen) to submit proposals on how the organisation can create a centralised system and develop effective treatment for problem gambling, as well as working alongside the Institute of Public Health to work out how such a system can be funded.

“If gaming policy is not implemented in a consistent and systematic way in the light of the objective to be achieved, there is a risk that this is contrary to the criteria for regulation in the European Union Treaty which may also result in gambling policy not working in an efficient and expedient manner,” the statement added.

The current gambling monopoly Svenska Spel has also been called upon to do more to prevent addiction from developing, with the government supporting the Riskrevisionen’s recommendations that the company develops more stringent measures to combat problem gambling. When the report was originally published, the auditor general Claes Norgren said the operator needed to do more “to set an example for the market when it comes to combatting gambling addiction.”

At the time this prompted Svenska Spel chief executive Lennart Käll to speak out in support of the report, saying during an earnings call in July 2012 that it contained “a number of recommendations that we should take to heart,” adding that he hoped it “can lead to a good debate about the gaming market and what kind of society we want.”

Though this development all but confirms that Sweden is moving towards legislation, hints that the country would look to establish a framework first emerged in July last year. Shortly after the report was originally published, Norman admitted that the government would look to introduce legislation before the end of the current parliamentary term in 2014, explaining to national radio station Sveriges Radio:

“I cannot confirm or deny [that we will introduce] a licensing model, but it is under consideration. There are many pitfalls in gaming policy, we have to consider everyone but for us gambling addiction is the most important issue. The target is a bill before the term ends,” he said.