New requirements for B2B licenses will come into effect on July 1, 2023

In Sweden, there has been an increase in online gambling in recent years, which has led to an increased focus on regulating the gambling market. One of the problems is that there have been many unlicensed gambling operators who have attracted Swedish players, which has created a difficulty for Swedish authorities to monitor and protect players from the risks of illegal gambling.

To address this issue, there have been discussions about introducing B2B licenses for game developers. A B2B license means that a gambling operator must have a license to provide games to other gambling operators, rather than directly to players. This would increase the channeling of Swedish players to licensed operators and thereby reduce the risk of illegal gambling.

After many discussions and proposals, the idea has now become a reality. Recently, the proposal to introduce B2B licenses for game developers in Sweden was approved, and the first licenses have been granted. This is a significant step forward in regulating the gambling market in Sweden and protecting Swedish players from the risks of illegal gambling. In this article, we will tell you about new licenses being introduced in casinos with Swedish licenses and casinos without Swedish licenses.

Why is the government introducing B2B licenses?

In 2022, the government proposed to strengthen gambling regulation in Sweden. One of the proposals was to introduce B2B licenses for game developers, which would help reduce the incidence of illegal gambling. In a proposition submitted to the Riksdag on May 12, 2022, it was proposed that it would not be allowed for a license holder to manufacture, provide, install, or modify gaming software for anyone who does not have the necessary license according to the Gaming Act.

It was also proposed that a license holder would be responsible for ensuring that the gaming software used is manufactured, provided, installed, or modified by someone with permission. Today, there are a number of game developers from Sweden. More about them can be found in our articles on NetEnt Casino and Play’n Go Casino.

After discussions and debates, the Riksdag decided to introduce the requirement for B2B licenses for game developers at the end of November 2022. This decision is part of a larger plan to increase surveillance of the gambling market and reduce the risk of illegal gambling in Sweden.

It is important to note that this decision is part of an ongoing process to strengthen regulation of the gambling market in Sweden. By introducing the requirement for B2B licenses for game developers, it will be easier to monitor and control who is providing gaming software in the Swedish market. This is a positive development for protecting players and reducing the risk of illegal gambling.

What will happen to casinos without a Swedish license?

The purpose of introducing B2B licenses for game developers is to strengthen gambling regulation in Sweden by reducing the presence of unscrupulous gaming companies without licenses in the Swedish market. By requiring licenses for game developers, it is hoped that more players will choose Swedish casinos instead of international casinos, thereby increasing the channeling of players to licensed casinos in Sweden.

Although the introduction of these licenses may help remove online casinos without Spelpaus from the Swedish market, it is not certain that it will be enough to stop them completely. Playing at casinos outside Sweden is not illegal, and there is a risk that these companies will find ways to continue attracting Swedish players to them. Even if many of the popular games will not be available at these unlicensed casinos in the future, less strict gambling regulations and generous bonuses may continue to attract many players from Sweden.

So, to answer the question of whether the introduction of B2B licenses will mean the end of casinos without Spelpaus in the Swedish market, the answer is no. It is highly likely that many foreign gaming companies will find ways to circumvent the prohibitions, as they often do. The introduction of B2B licenses is part of a continuous process to strengthen the regulation of the gambling market in Sweden, and it remains to be seen how effective it will be in reducing the incidence of illegal gambling.

When will the new changes take effect?

From July 1, 2023, there will be a requirement for B2B licenses for gaming software under the new gambling law. In March 2023, the application process for software manufacturers opened, and so far, three companies have been granted licenses – SYNOT Games, Programutvecklarna i Norrköping AB, and Skill On Net. The license is valid for five years and must be renewed before the summer of 2028. The cost of obtaining the license is initially SEK 120,000, but additional costs will be added at renewal.

The purpose of these licenses is to increase the channeling of the Swedish gambling market and counteract illegal gambling by allowing only licensed software providers to provide their services to licensed gaming companies. It is important to note that this legislation will not stop foreign casinos from offering games to Swedish players, but it will make it more difficult for casinos without BankID to operate in the Swedish market.

Will Swedish game developers be affected?

There are several game developers in Sweden, including NetEnt, Quickspin, Thunderkick, and Play’n GO. The new changes with the requirement for B2B licenses will affect these game developers because they must now apply for the license and ensure that they meet the requirements and rules that apply. Those who have already been granted permission to produce gaming software outside Sweden will now need to apply for the new license to continue operating in the Swedish gambling market.

The cost of the license is also something that can affect the game developers’ economy, especially for smaller companies that may not have as much financial power. At the same time, it is possible that some smaller unscrupulous game developers will not be able to meet the requirements to obtain a license and may be forced to leave the Swedish gambling market, which could give more room for serious and established game developers to expand.

Conclusion

The new requirements for B2B licenses for gaming software are part of the government’s strengthened gambling regulation to increase channeling and prevent illegal gambling in Sweden. Although several gaming providers have already applied for and received B2B licenses, it is still unclear how effective the license requirement will be in reducing the incidence of illegal gambling in the Swedish market.