In recent years, the gambling industry in Sweden has been undergoing some big changes, and new regulations have been changing how players and operators work with the market. In January 2019, Sweden introduced a new Gambling Act which required all gambling operators targeting Swedish players to obtain a Swedish license from the Swedish Gambling Authority (Spelinspektionen).
This change was meant to drive better player protection and regulate the gambling sector which is on the rise, but has also piqued the interest of alternative gambling licenses. Now many Swedish players are turning to foreign casinos that run without a Swedish licence, which are known as casino utan svensk licens (casino without a Swedish licence).
Alternative gambling licenses offer a new way for operators and players to offer and experience different gaming experiences that are not constrained by Swedish regulations from the operator’s and player’s perspectives. In this article, we take a look at why these foreign casinos are gaining popularity, what the regulatory differences are and why platforms such as the CUSL guide their players in this new world.
Some Basics of Swedish Gambling License
The introduction of the Swedish Gambling Act did so mainly to ensure responsible gambling and to prevent players from being harmed by the problem of addiction. It has strict rules, such as limits on bonuses, restrictions on advertising and for operators to integrate into the national self exclusion system, Spelpaus.
As you can imagine, these regulations have clearly positively contributed to what is now responsible gambling, but have also constrained the number of possibilities for Swedish players. For example, licensed operators can only give a single welcome bonus to a player, and with advertising restrictions, casinos have struggled to promote their services properly. Due to that, some players are looking for something else that provides better bonuses and less restrictions.
What is an Alternative Gambling License?
Licensing in Sweden is an alternative gambling license meaning that the licences are issued by authorities in jurisdictions other than Sweden. Gambling regulators of countries like Malta, Curacao, Gibraltar, and the UK are usually the ones who offer these licenses. While some online casinos are licensed by the Swedish Gambling Authority, they are not operating under those regulations, which are often referred to as ‘casinos without a Swedish license’.
But platforms like CUSL (Casino Utan Svensk Licens) help players in Sweden know what services to expect from these alternative gambling licenses and how they differ from those with Swedish licenses and can recommend which casinos offer more attractive and generous bonuses than the Swedish licensed casinos. These casinos are of course still legitimate and regulated casinos, but not with the same degree of restrictions vis à vis Swedish licensed casinos.
Why Swedish Players Are Opting for Alternative Licenses?
There are several reasons why Swedish players are increasingly turning to casinos operating under alternative licenses:
Better Bonuses and Promotions: Another big and important attraction for casinos with no Swedish license is the possibility of obtaining more generous bonuses. Many players find that Swedish licensed casinos cap them at one welcome bonus. On the other hand, casinos with a license in other jurisdictions are able to offer a lot of different bonuses such as reload bonuses, cashback offers, free spins and loyalty programs. Alternative gambling licenses provide more value for players who seek more from their deposits.
Freedom from Strict Regulations: The Spelinspektionen rules can be very strict, with limits on advertising, and integration into Spelpaus, for example, which may discourage some players from staying on Swedish-licensed platforms. These rules are to protect the player but can sometimes feel a bit restrictive. It’s players who have voluntarily excluded themselves from gambling via Spelpaus but who now want to return to gaming, but without the inconvenience of having to reverse their exclusion that turn to foreign casinos as an alternative.
More Games and Providers: For example, online casinos licensed outside of Sweden have access to a greater variety of games and gaming software suppliers. This means that players at these casinos will have access to a lot more games than they would at a normal casino, such as slots, table games and live casino. Another cause for the interest in Swedish players is that they use casinos under other licenses, as the offer of greater variety appeals to them.
Flexible Payment Options: Many casinos with alternative licenses provide a wider range of payment method including cryptocurrencies, which are usually not accepted by Swedish-licensed casinos. Foreign casinos offer the players a beneficial option, which is to suit those who are searching for less anonymous or decentralized payment solutions.
Are Alternative Licenses Safe?
Considering that they have alternative licenses is one of the common concerns for Swedish players when it comes to which casinos to visit. On that note, however, we should mention that while these casinos are not licensed by the Swedish Gambling Authority, many receive a license from other highly respected licensing bodies such as the Malta Gaming Authority (MGA) and the Curacao eGaming Authority. Different rules are in place for these regulators to prevent any poor play, nudity, or player protection.
CUSL gives us a glimpse of the safety and legitimacy of the casinos, helping players not to risk quality of gaming experience but to choose a trustworthy casino. In addition, the players are guided to the reputable platforms and the importance of checking out for the legitimate licenses and the regulatory oversight are emphasized by CUSL.
Alternative Licenses and their Impact on Operators
Alternative licenses are attractive to gambling operators, for whom they present a number of advantages, especially in states such as Sweden. Licenses from countries like Malta or Curacao will allow operators to achieve a broader audience as well as more advantageous promotions. Since they are not restricted by the same bonus and marketing restrictions as Swedish licensed casinos, they are able to compete more nimbly within the gamut.
But doing so is fraught with some risks. Measures have been taken by the Swedish government to crack down on foreign operators that pursue Swedish players without authorization. These measures mainly involve financial penalties and barring marketing, and they illustrate the government’s wish to safeguard Swedish players from unregulated gambling.
Henrik Lund, whose name is closely connected to the Swedish gambling industry, has said that alternative gambling licenses bring opportunities: “Casinos operating outside of the Swedish license system often provide a broader range of games. This means players can access exclusive titles and innovative offerings that may not be available at licensed Swedish casinos, enhancing the overall gaming experience.”
The Final Hurdle: Legal and Regulatory Risks
While it is perfectly legal for Swedish players to gamble at casinos that have not been licensed in Sweden, there are some risks involved. The same legal framework players are protected from when the Swedish Gambling Authority is unsecured, is not implemented, and there is no recourse if you have problems with bonuses, withdraws, or unfair play. That being said, players still have the option to pick a licensed casino by a reputable authority, such as the Malta Gaming Authority or Curacao eGaming.