Spelinspektionen and BOS Constantly on Opposing Sides

Article by : Milena Petrovska Mar 1, 2024

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The gambling industry in Sweden is constantly seeing two key players on opposing sides.

Namely, the Swedish Trade Association for Online Gambling (BOS) is upset at Spelinspektionen for not fining Infiniza. And if that is not enough, BOS is fighting the government on another front in the debate for credit card bans.

While BOS seems focused on protecting the regulated market and its players, Spelinspektionen aims at keeping consumers protected. These two can’t seem to find a common language and strategy for achieving either of the goals.

Infiniza Avoids a Hefty Fine, BOS Disagrees

Infiniza is a Malta-based gambling operator that doesn’t possess a Swedish license.

Nevertheless, it offered its services to players residing in Sweden. The country’s authorities began its investigation via Zimpler, a payment provider supported by Infiniza’s website.

Zimpler was ordered to stop servicing Infiniza, and the provider complied. However, Infiniza found an alternative with Finshark. All payments were routed to an unlicensed instant payment provider called Krofort.

However, Spelinspektionen’s investigation concluded the Maltese operator didn’t target Swedish players anymore and, hence, decided not to issue any penalties. BOS did not greet this decision, and the body claimed that it was insulted by the outcome.

Gustaf Hoffstedt, the secretary general of BOS, stated that the system itself showed weakness by allowing unlicensed operators to slip through and offer their services to Swedish players.

He doubled down on BOS’ stance that all foreign operators shouldn’t be allowed to operate in Sweden. He concluded by stating that changes in how payment providers were treated were needed.

BOS Goes Toe-to-Toe With Government Too

Sweden’s government recently proposed a total ban on using credit cards for online gambling. According to authorities, they increase the risk of developing gambling harm.

Sweden seems to be following the example of another country that opted for the same approach – the UK. Back in 2020, research stated that 800,000 people used credit cards to gamble online in the UK, and more than 20% showed signs of gambling addiction.

As a result, the UKGC banned credit cards.

Australian authorities have also joined the discourse on banning credit card gambling. The country’s Senate has already approved such legislation, which is expected to come into force in the upcoming months.

Now, the government of Sweden is trying to follow suit, but BOS counters it.

In an official statement, BOS claimed that the ban was absurd and filled with double standards.

The organization used the purchase of alcoholic beverages as a comparison. According to BOS, alcoholic drinks were offered by a monopoly company owned and operated by the government. Yet, there weren’t any discussions to ban credit card payments for alcoholic beverage purchases.

Furthermore, BOS claimed that the ban would simply push players toward the black market. According to its statistics, illegal gambling operators make up as much as 41% of the market in the country.

The association claimed that the ban would help the illegal industry take over the legal one. It would eventually lead to illegal operators gaining a larger market share in 2024.

In a concluding note, BOS stated that the “government needs to change focus.” The organization added that authorities needed to show everyone that they were on the same page as licensed gambling entities and safeguarding consumers.

In the meantime, the Swedish parliament is set to review several proposed amendments to the 2018 Gambling Act.

If passed, these amendments would allow licensees to process data on suspect match-fixing. They would also introduce special provisions in accordance with the principles of the European General Data Protection Regulation.

If the parliament approves them, the amendments will go into force on December 1, 2024.