Sweden’s gambling regulator under scrutiny for insufficient oversight

Bruna Garcia October 24, 2024

A new report from Sweden’s National Audit Office (NAO) released on Tuesday (22) has cast a critical eye on the country’s gambling regulator, Spelinspektionen, accusing it of inadequate supervision of both licensed and unlicensed gambling operations.

The NAO’s investigation found that Spelinspektionen has been falling short in conducting regular inspections of active gambling companies. Moreover, the regulator’s decision-making process for selecting companies for inspection was deemed to be based on insufficient risk analysis.

The NAO attributed these shortcomings partly to Spelinspektionen’s prioritisation of other tasks. However, the regulator defended itself, stating that increased government assignments and other responsibilities have limited its ability to conduct comprehensive supervision.

Another significant flaw identified in the NAO’s report was the gambling authority’s failure to follow up on the results of its supervisory activities. The regulator was found to have conducted only one follow-up inspection in the past five years.

This lack of follow-up means that Spelinspek t ionen is unable to determine whether reported errors have been rectified, hindering its ability to assess the effectiveness of its resource allocation, according to the NAO.

To maintain the integrity of the gambling system, the NAO stressed the importance of a robust sanctioning system with swift and tangible consequences for regulatory violations. However, the regulator’s task is made more challenging by the unclear provisions of Sweden’s gambling law, which have contributed to the emergence of a gray market for gambling in the country.

NAO recommends more resources to the gambling authority

In its recommendations, the NAO advised the Swedish government to ensure that Spelinspektionen has the necessary resources to effectively oversee the gambling market and to provide parliament with reliable information about the scope and outcomes of its activities.

Additionally, the NAO recommended that the government examine the applicability of Sweden’s Gambling Act to clarify which online gambling activities are covered by its regulations.

In response to the NAO’s report, Spelinspektionen acknowledged the need to improve its supervisory activities and stated that it has been working on making them more efficient. The gambling authority also highlighted the challenges posed by ongoing legal proceedings and the regulator’s recent budget increase, which will enable it to further develop its operations.

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