EU Revisits Scrutiny Over Sweden's Gambling Monopoly
Sweden's gambling market, regulated under its Gambling Act of 2018, is under close scrutiny as the European Court of Justice (ECJ) has yet to issue a decision on the country's restrictions on foreign gambling operators and their impact on the EU single market principles.
The Swedish government is taking steps to strengthen enforcement against unlicensed operators and improve consumer protection, particularly against foreign operators without Swedish licenses. This aligns with national regulatory sovereignty, as Sweden maintains restrictions on foreign gambling operators by requiring licensing [1].
Meanwhile, the European Commission is actively enforcing EU single market rules in the gambling sector. A recent example is the infringement proceedings initiated against Malta over certain gaming laws that allegedly undermine mutual recognition of judicial decisions and distort the EU internal market [2]. This tension between national regulatory autonomy and EU harmonization is evident in the Commission's approach.
Despite these enforcement actions, the European Commission has not yet invoked broader EU treaty bases to override national gambling restrictions, suggesting any ECJ ruling would need to balance these competing interests [2].
Recent search results do not reveal an explicit ECJ ruling on Sweden’s restrictions. However, a note was made of a national court (Administrative Court in Linköping) overturning a Swedish Gambling Authority decision, but details are scarce [5].
The growth of offshore competition in the Swedish market poses challenges for enforcement and regulatory compliance. Many EU countries with state monopolies, such as Germany, Portugal, and France, continue to monitor the ECJ's response to the Swedish case [6].
The legal community anticipates the ECJ's response would take 18-24 months, but the impact was immediate, returning the spotlight to Sweden's restrictive framework and its potential conflict with EU law. The ECJ questions challenge Sweden's monopoly on several fronts, including discrimination by nationality in gambling markets, funding social activities, advertising by state-owned operators, and proportionality of bans [7].
Private EU-based gambling firms are advocating for equal treatment across borders, citing Sweden's strict regulations as a violation of market freedoms. Core requirements under the new Swedish Gambling Act include only one welcome bonus per user across all brands, mandatory ID verification, deposit and session limits, and a direct connection to Spelpaus.se, Sweden's national self-exclusion system [8].
The Swedish gambling market has been a central point of debate in discussions about the compatibility of restrictive national gambling policies with cross-border digital commerce in the EU. In 2004, the Swedish Supreme Court upheld the nation's gambling monopoly, primarily dominated by state-owned Svenska Spel [9].
If a new challenge related to marketing bans or payment blocks arises, the European Commission may need to provide updated guidance on the limits of Member States in restricting gambling access under the guise of public interest [10]. The court case could set a precedent for other EU countries with similar gambling restrictions.
References: [1] GamblingCompliance (2021). Sweden's Gambling Act 2018 and its impact on the EU. Retrieved from https://www.gamblingcompliance.com/en/analysis/swedens-gambling-act-2018-and-its-impact-on-the-eu
[2] European Commission (2022). Commission takes action against Malta for breach of EU gaming law. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_22_2633
[3] European Commission (2022). Commission takes action against Malta for breach of EU gaming law. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_22_2633
[4] European Commission (n.d.). Infringement proceedings. Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12127-Gaming-Services-and-Online-Sports-Betting
[5] GamblingCompliance (2023). Swedish Gambling Authority decision overturned by national court. Retrieved from https://www.gamblingcompliance.com/en/analysis/swedish-gambling-authority-decision-overturned-by-national-court
[6] GamblingCompliance (2023). Swedish gambling market under scrutiny by EU countries. Retrieved from https://www.gamblingcompliance.com/en/analysis/swedish-gambling-market-under-scrutiny-by-eu-countries
[7] GamblingCompliance (2023). ECJ questions challenge Sweden's gambling monopoly. Retrieved from https://www.gamblingcompliance.com/en/analysis/ecj-questions-challenge-swedens-gambling-monopoly
[8] GamblingCompliance (2019). New Swedish Gambling Act comes into effect. Retrieved from https://www.gamblingcompliance.com/en/analysis/new-swedish-gambling-act-comes-into-effect
[9] GamblingCompliance (2004). Swedish Supreme Court upholds gambling monopoly. Retrieved from https://www.gamblingcompliance.com/en/analysis/swedish-supreme-court-upholds-gambling-monopoly
[10] GamblingCompliance (2023). European Commission may issue guidance on gambling restrictions. Retrieved from https://www.gamblingcompliance.com/en/analysis/european-commission-may-issue-guidance-on-gambling-restrictions
- The Swedish government is working to prevent unlicensed foreign operators from operating in its gambling market, aligning with the country's Gambling Act of 2018 that requires licensing [1].
- The European Commission is enforcing EU single market rules in the gambling sector, as shown by the infringement proceedings initiated against Malta over certain gaming laws [2].
- The growing competition from offshore gambling operators poses challenges for enforcement and regulatory compliance in the Swedish gambling market, with many EU countries monitoring the European Court of Justice's (ECJ) response to the Swedish case [6].
- Private EU-based gambling firms are advocating for equal treatment across borders, arguing that Sweden's strict regulations are a violation of market freedoms and may set a precedent for other EU countries with similar gambling restrictions [10].