Response to interpellation 2024/25:512 on IP blocking of unlicensed gambling companies
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
M considers it a priority to shut out unlicensed gambling companies as they pose risks to the consumer and undermine the gambling legislation 1. M argues that the investigation into the direction criterion is important to counter payment flows 1. M prefers to focus on stopping monetary transactions because DNS blocking is an extensive interference with fundamental freedoms and rights 2 3. M considers it important to address indebtedness 3, that the government's proposal on banking licenses is effective 3 and that gambling addiction is a serious illness 4. S considers gambling abuse to be a serious public health problem 5 and that the gambling market was deregulated by broad consensus 6. S wants to introduce mandatory contact with persons who opt out via Spelpaus 5 and considers that new customer bonuses should be prohibited 7.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Statsrådet Niklas Wykman (M)
Mr. Speaker! Azadeh Rojhan has asked me what other measures, besides the IP-blocking of unlicensed gambling companies, I intend to take to shut out unlicensed gambling from the Swedish gambling market.
Closing out unlicensed gambling companies from the gambling market is a priority issue for the government. Gambling with unlicensed actors entails risks for the individual consumer while simultaneously undermining the gambling legislation and making it less effective. Criminals also exploit such gambling for money laundering and match-fixing.
The most important measures for a safer and healthier gambling market are to streamline the work against illegal gambling and to prevent unlicensed gambling to a greater extent than is possible today. An investigator has therefore been tasked with reviewing the scope of the Gambling Act, particularly regarding the so-called direction criterion which determines whether an online game is subject to licensing. The investigator shall particularly take into account that the proposal should contribute to countering payment flows between Swedish consumers and unlicensed gambling companies. The need for such an investigation has been pointed out by, among others, the Gambling Inspectorate, the National Audit Office, and industry organizations.
In addition, the government has taken a number of measures. Among these, a more effective system for blocking payments to and from illegal gambling activities has been introduced. Spelinspektionen has furthermore received increased appropriations and more tools to use in supervision, such as the possibility to purchase gaming services online under a hidden identity. To ensure that the measures have an effect, the government has, among other things, tasked Spelinspektionen with developing the supervision of the gaming market as well as the work against unlicensed gambling activities and match-fixing.
Several measures to counteract unlicensed gambling have thus been implemented at the initiative of the government. The government follows the developments in the gambling market closely and is prepared to take further measures if necessary.
Azadeh Rojhan (S)
Mr. Speaker! Thank you, Minister, for the answer to my interpellation!
It is very important that we get the opportunity to discuss how we, through various measures, can combat one of our time's most serious but often hidden public health problems, namely gambling addiction. Unlike many other addictions, gambling addiction unfortunately is not visible outwardly until the damage is already very great – when debts have grown unmanageable, when relationships have been broken apart, and when people's mental health has collapsed. In the worst case, gambling addiction leads to people taking their own lives. It is an addiction that hits hard, fast, and usually in silence.
Since the gambling market was deregulated and the licensing system was introduced in 2019, a great deal has happened. The goal was to gain control, protect consumers, and keep gambling within a regulated system. But reality has shown that the measures may not be sufficient. The gambling companies' methods have evolved rapidly, and the most vulnerable – young people and people in risk zones – are often those who are hit hardest.
That is why it is time to stop and evaluate: Are the measures we have today sufficient? That is why I have asked the Minister how the government views the possibility of introducing DNS blocking, that is, blocking access to websites where unlicensed gambling is conducted. But I also want to hear what other measures the Minister intends to introduce.
One measure I want to bring up is to introduce a mandatory and rapid contact with individuals who have themselves chosen to block themselves via Spelpaus. This is particularly relevant because several gambling addiction organizations today testify that a very large proportion of those who seek help from them are players who have blocked themselves on Spelpaus but have then started playing on unlicensed gambling sites.
It is truly worrying when we now see that the Gambling Inspectorate's figures on channeling are incorrect. The analysis company that the Gambling Inspectorate had used has now recalculated the channeling rate, updated its figures for the Swedish market, and lowered its estimate from 91 percent to 72 percent for 2023. This means that we have many more Swedish players playing on the unlicensed market than we previously knew. Measures to quickly identify players who risk seeking out the unlicensed market then become even more important.
Imagine the situation: A player reaches an insight that their gambling is starting to get out of control. In a moment of self-reflection, they go to Spelpaus and exclude themselves from licensed gambling – an incredibly brave decision.
But what happens then? Nothing! No one calls them. No one offers them help. They are left alone in a vulnerable situation, and we know that it is there and then that many relapse and find their way to other ways to continue gambling. They begin to seek out unlicensed companies, and there the gambling addiction deepens.
We need a mechanism where people who use Spelpaus quickly receive a follow-up – a phone call, contact with a counselor, or clear guidance to professional help, something that breaks the isolation and offers support at the right moment. I wonder if the government and the Council of State are prepared to review the possibility of introducing such a measure.
Statsrådet Niklas Wykman (M)
Mr. Speaker! First and foremost, one must be careful not to lean one's entire assessment on a private company's estimate of the channeling degree. That the statement from me is correct is demonstrated, not least by the fact that they changed their assessment so radically. One cannot lean on just such an assessment.
That was also why the Gambling Authority had a mandate from the government to broadly review the degree of channeling. The member says that it is not correct that one only leaned on this assessment. The whole idea was to conduct a broader analysis and assessment of the degree of channeling. This company's analysis would absolutely be included, but a broader assessment was made than that. What we wanted to avoid was precisely just leaning on that assessment. One should look at this from a broader perspective, and it is important to continue doing so.
We who have previously had a skeptical attitude towards a free market are, of course, very happy about and welcome that the Social Democrats, after the massive deregulation they carried out now, nevertheless wake up to the problems that exist in the area – the problems that the interpellor points out and even worse ones.
There are people who manage their anxiety by gambling – this is many times closely linked to anxiety issues. It can be linked to bipolar disorder. There are many different tragic situations that lead to people gambling too much, not least gambling addiction in itself. This is not just any market.
I am glad that the member now has come to the realization that the deregulation did not provide Swedish consumers with sufficient security in this area.
We are working broadly on this. The appropriations to Spelinspektionen increased by 10.8 million in 2024. They are estimated to increase by 15.6 million in 2025 and 18.6 million in 2026. Sweden has finally signed the Macolin Convention against match-fixing, which is part of the fight against gambling addiction. Finansinspektionen has received increased resources of 4.5 million kronor to work against the gambling market. Several assignments have been directed to Spelinspektionen – the member read out some of them. We have added licensing requirements for gambling software so that it can only be sold to those who have a license. We have introduced more effective ways to block payments. Spelinspektionen has been given the opportunity to exercise covert supervision.
Very important, Mr. Speaker, is that we are now appointing this investigation into the scope of the gambling law, primarily with a focus on this regarding the targeting criterion. One simply must not turn to Swedish consumers. Many point out that the legislation that exists is not sufficient. Here is the question of whether one can follow the payments in the system. It is a primary mission here: that one simply shall not be able to transfer money to the companies that do not have a license to arrange gambling.
The member's proposal to prohibit Swedes from accessing information on certain websites that organize gambling is very far-reaching. To begin blocking and shutting down information, that one should not be allowed to check what is available in other countries when it comes to gambling, or that Swedish gambling companies should not be allowed to visit foreign gambling sites and check what they look like, is very far-reaching and a very large infringement on what we normally conceive as a fairly fundamental freedom and right in this country.
Hopefully, however, once the member has taken a closer look at the proposal, there can be a broad consensus on reviewing the direction criterion to prevent these problems.
Azadeh Rojhan (S)
Mr. Speaker! I note that I did not receive any answer to the question regarding a simple measure that can be taken here and now – a low-hanging fruit. Many industry organizations and organizations that help people who have fallen into gambling addiction themselves highlight this important measure to help people who are currently in a vulnerable situation. I would like to hear the Minister mention something about implementing this simple measure that would help many.
I have another question, which is rather about what is permitted within the framework of licensed gambling companies, namely that one is allowed to offer a new customer bonus. It is a problematic phenomenon. People are thrown into a gambling addiction from the first time they come into contact with gambling at all.
The bonuses drive unhealthy gambling and create incentives that are directly harmful, especially for young and vulnerable players. Despite this, it is still legal for gambling companies to attract new customers with welcome bonuses. I believe that, fundamentally, this is a practice that stands in direct opposition to the gambling responsibility that we impose on the licensed gambling companies.
The bonuses encourage players to take greater risks and to play for more money than they originally intended. The bonus is also often linked to a wagering requirement. It can be compared to the classic marketing trick of buy three, pay for two. In the gambling world, it instead becomes depositing more, playing more, and continuing to play to get your reward. This leads to many players starting to play at a higher level than they had intended from the beginning, and they are encouraged to deposit more money than they can afford. Then they create new accounts at different companies to gain access to more bonuses. They are simply drawn into a gambling culture where they successively get used to playing with money that they actually do not have.
It is particularly serious that these bonuses are often aimed at young people. Several parents have contacted organizations such as Spelfriheten and reported that their 18-year-olds have received welcome letters directly from gambling companies as soon as they turned 18. How is this possible? Yes, again: Today's legislation allows gambling companies to market themselves directly to persons who have not been customers before. Therefore, they can target 18-year-olds.
A particularly noteworthy example is a gambling company operating under the same license as the company that sponsors the handball league. They offer a welcome bonus of up to 20,000 kronor over a five-year period, but what is not apparent is the turnover requirement, which is 125 times the bonus amount. This means that players must wager 2.5 million kronor before they even have a chance to withdraw the offered 20,000 kronor. This is nothing other than a trap.
The gambling companies continue to do so, and it is completely legal for them. But a bonus ban could contribute to a healthier and more sustainable gambling market. It reduces the incentive to constantly create new accounts and jump between different gambling sites, and it makes it harder for gambling sites to simply identify people who are in the risk zone.
Can the Government consider taking the step and banning new customer bonuses? I would also like to hear a clear answer to my previous question.
Statsrådet Niklas Wykman (M)
Mr. Speaker! First and foremost, I am pleased with Azadeh Rojhan's stance on the issues. Even if it is hoping for too much, I can still hope that Azadeh Rojhan is satisfied that it is I who is responsible for the issues. I have a more cautious and conservative view on the issues than the previous government had. They opened the entire market with the gambling deregulation, admittedly with broad support, but it was still under a Social Democratic government. They did not take sufficient care of all the negative consequences that exist with gambling.
I think it is worth mentioning that gaming is a great pleasure for many people. People gather around different forms of gaming, and it is a way to actively participate oneself in a sport or with horses and get a bit of extra excitement.
For the vast majority, this is a great pleasure, but for many people, many families, it is pure hell. Economies are being destroyed. The Member has himself mentioned the most catastrophic consequences with suicides. It is quite obvious that this is a market where a deregulation was carried out that was not accompanied by sufficient measures.
Now we take action for action. We have, for example, improved the duty of care that the gambling companies have. I have no closed door, and I gladly accept a concrete idea on how one could proceed with mandatory opportunities to make contact. What exactly would that look like? I welcome all such proposals. All proposals on how one can act to effectively reduce the risk of people feeling unwell are welcome. We will continue to work with them.
I still want to dwell a little on the investigation that we have just commissioned. To block gambling sites or forbid people from visiting gambling sites would be a far-reaching intervention into what we normally consider a self-evident freedom in Sweden, to be able to access information of various kinds. But if a gambling site does not have a license in Sweden, it should be a conclusion for many that one should not be able to transfer money to that site. It is my assessment that it is a more feasible and probably a more effective way to go, where there is a better possibility for the state to ensure that the rules are upheld.
I am here to look at all proposals for measures. An important measure that cannot be omitted from the discussion concerns indebtedness. To gamble away the money one has is bad in many cases. To gamble away money that one has borrowed is, moreover, completely reprehensible and ruins life in the long term – one may never become free from the debts.
The government has recently presented far-reaching proposals against quick credits. Among other things, banking licenses will be required, and the market is simply to be cleaned up. The member surely knows that many of these credit institutions issue advertisements in cooperation with gambling companies, at sports events, or for other forms of sport where they are played. Now we want to close the door on the existing market by imposing requirements for banking licenses and thereby being covered by the core of supervision in the financial system. We assess these as effective measures in the area, both the investigation that has been commissioned to look at the directional criterion – not being able to transfer money – and that we are taking a hard line on issues regarding indebtedness. The proposal I just described is part of this. We have previously taken other measures, for example in the form of a lowered maximum interest rate. It would be positive to receive a welcoming response from the Social Democrats in this part.
Azadeh Rojhan (S)
Mr. Speaker! I really want to remind the Minister that it was a unanimous Riksdag that moved forward with a deregulation of the gambling market. It was not a Social Democratic project, but we did this together in great unity.
However, there has not been any great consensus in the Riksdag regarding taking other measures, for example, limiting the marketing of gambling towards consumers and particularly vulnerable individuals. There, the Riksdag has not been united; rather, we Social Democrats have wanted to go further but have not received support for it.
I am nevertheless pleased about the recently appointed inquiry, and I hope that the minister and I will have the opportunity to discuss the issues further. This is not just a political issue for me, but it is also a personal issue. I have had several people in my circle who have lost the battle against their gambling addiction and who have unfortunately taken the drastic final way out. This has left deep scars on families and friends who have been left behind, and we have reflected on what we could have done differently.
I hope that we can continue to discuss these issues and that we see more measures to reduce gambling addiction and counteract gambling abuse in Sweden. As it stands now, this is one of our greatest public health problems. There we need to act, not only as politicians but also as fellow human beings.
Statsrådet Niklas Wykman (M)
Mr. Speaker! First and foremost, I would like to express my deepest sympathy for the painful stories that the member recounted. It is appalling.
Unfortunately, this is not entirely uncommon. Even if it does not go that far, there are many people who suffer terribly, both for the person who becomes indebted and for entire families whose lives are shattered. Regardless of what one is dependent on, it is a question of a serious illness.
Gambling addiction also differs from other addictions. Many who work with addiction care describe that when it comes to other addictions, one can still get help and then restart one's life once one has gained better control over the addiction, but when one has been a gambling addict, the great damage often remains even afterwards. The indebtedness can sometimes be lifelong.
That is why the measures we are now proposing are central to reducing over-indebtedness. Unfortunately, we received no response from the Social Democrats here, but they will have to come back to us.
The committee member asked a question in the previous post that I simply forgot to answer. It is clear that one constantly needs to review all these roads and test which rules should apply when it comes to enticing people into gambling or getting them to play more. It is, for example, important that the supervisory work functions. Therefore, we are strengthening it.
I still want to say, without moralizing too much, that it is also important to review what responsibility one takes oneself when it comes to enticing people to gamble. Is it reasonable with offers to buy lottery tickets cheaply or to present it as free, even though they actually become bound in long subscriptions? Is it reasonable to in various newspapers entice with welcome offers of getting products cheaply and so on, but then bind people in long-term gambling? It applies broadly to the market that everyone should take a great responsibility.
I hope that we can do a lot of good things together here.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.