The Unclear Future of Swedish Online Casino Business
Swedish industry that accommodates betting and gambling services keeps shaking and rumbling since the beginning of 2017. If you don’t know, the march was quite a noisy months and heralded many changes that some of endemic businesses are questioning even today. When the government decided to reevaluate their ways of controlling the industry, some people were not quite pleased with the idea. The whole $500 million market is controlled by one state corporation and that is a concept that the officials want to get rid of. The whole problem that the state sees in the current setup is that the monopoly prevents foreign capital enter the market. The whole country misses out on a huge influx of tax money that could be claimed if huge international companies can be licensed to operate within the country. Some experts claim that expected influx in budget could be higher than $574 million. From the purely economic perspective this is a sound decision, but why the whole country started rumbling then? You see, the monopoly was founded nearly a century ago and was one of the sources of state income and a good protection against scammers. Swedes do love their habits related to games of thrill and chance and spend up to 2.5% of their income on recreational gambling. However, the black market keeps growing with over $500 million missing the supervision from Swedish officials. The parliament decided to refresh the whole system and put the 18% tax on the industry.
The discussions did not stop
The decision was met with criticism and praises from various social groups and industry experts. While many economy experts consider this step a right one, there are many politicians and endemic specialists and owners that think of it with lesser appreciation. The discussion revolves around the severity of supervision and the amount of power that law enforcement departments will actually have over foreign names that will inevitably start flowing in the domestic market. Many online casinos already operate from the shadows and have started applying for Swedish licenses after the initial march push from people controlling the politics surrounding the market. The amount of sites that would like go official is surprisingly high and many opposing experts think that the country does not have a system that would help to distinguish good reliable brands from scammers. Several respected individuals and independent inspectors have been monitoring the industry for the whole 2017 and the solution is that the market must restructure itself and become a free environment for more competition and more money for the national budget. One thing that lacks for this solution to be implemented seamlessly is a governmental department that would conduct licensing. Right now, the market is in drastic need for two key things:
- Reducing the risks of inviting irresponsibility and creating new relevant methods of providing legal assistance to all participants of the market including businesses and their clients;
- Developing a sophisticated system of mechanisms to effectively identify and counteract illegally operating enterprises.
One of the problems is that Swedes do not really know how to make the process of checking the background of foreign companies easy enough to attract investors and strict enough to prevent fraudulent enterprises from entering the market. Right now independent lawyers, politicians, and experts are suggesting their solutions, but the ideal way to solve the issue is far from being found.
This is why the future of the Swedish industry is misty. While the state is firmly on its course to make licensing of foreign entertainment service providers a reality, the industry is concerned about the quality of upcoming regulations.