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The Swedish Gambling Authority (SGA) and Financial Supervisory Authority have issued a joint report on improving illegal gambling oversight.

Within the document, the two organisations highlight avenues where they would be able to improve their regulatory roles through enhanced cooperation. 

The SGA said its experience has shown that unlicensed gambling operators often partner up with Swedish payments providers, which are often businesses regulated by the financial authority. 

As such, the report said there should be increased knowledge exchange between the two organisations in this area. 

This will include the financial regulator sharing its experience with the payments market and its services with the SGA. 

Conversely, the SGA will assist the Financial Supervisory Authority with understanding illegal gambling and the wider regulation of the country’s gambling sector. 

SGA receives new payment blocking powers

From 1 July, the SGA was granted new powers to block payments from unlicensed gambling operators. 

Under the new rules, the SGA is permitted to create new regulations to ensure payment businesses are blocking what it considers to be illegal payments.

Failure to do so can result in sanctions for payments providers.

Shortly after inheriting the new powers, the SGA threatened payments company Zimpler with a SEK25m (€2.1m) fine for not blocking unlicensed operator transactions. 

The report said that it is currently too early to be able to evaluate how successful the new powers have been at achieving their objectives.

It added future work needs to be done to evaluate how the new powers affect the financial regulator’s supervisory role, and what options it has to increase compliance.  

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