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Nate Steel, a lawyer and former legislator who worked on the gambling proposal, offered his thoughts: The second issue is that at least one case Game and Fish Commission v.
Edgemon says Article 5 is not to be interpreted literally, so the court only applied it to initiated acts in that case. But more recent cases the Andrews case on sovereign immunity, for example say Article 5 is to be interpreted literally.
David Couch, another lawyer active in ballot initiative campaigns, volunteers: No way should the General Assembly be allowed to modify a constitutional amendment as they can an act.
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Subscribe to this thread:. The news roundup and open line Friday: The roundup of news and comment and the open line. A tale of an uncounted ballot A personal anecdote in support of the need for easier voting — such as online voting.
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Who could complain since we have voter ID now? Mainly cloudy and milder tonight with isolated showers. Most Recent Comments Re: Does your jurisdiction permit virtual currencies to be used for gambling and are they separately regulated?
As a Member State of the EU, Sweden has implemented the 4 th Money Laundering Directive and all the regulations applicable to businesses, including gambling-related operations, which the directive includes are also applicable in Sweden.
With regards to online gambling licences and betting licences, an operator must, as part of its licence application, warrant that it has made a risk assessment of how its products and services could be used for purposes of money laundering and financing of terrorism and an assessment of how big such risk s are.
Virtual currencies are not explicitly prohibited but only payment services listed in Chapter 1, Section 3 of the Payment Services Act The problem with virtual currencies from an AML perspective is that it is considered to be difficult to determine the source of funds.
Furthermore, wagers must be stated in SEK. Our understanding is therefore that an operator can use any real currency, where the operator shall at least display Swedish kronor when players stake their wagers.
For international operators, it is in practice only possible to apply for an online commercial gambling licence and a betting licence including both online and land-based betting.
The state monopoly may also offer other products online. A licence applicant not resident or established in a country within the European Economic Area EEA must appoint a physical representative who is a resident in Sweden.
Furthermore, there is a requirement for licence holders to have their gambling system including servers located in Sweden, unless the Swedish Gambling Authority has entered into an agreement with the regulator where the gambling system is placed or if the licence holder is able to grant the Swedish Gambling Authority satisfactory remote access.
It is also important to note that the new Gambling Act only includes gambling that is provided in Sweden. Gambling that is not specifically targeted at the Swedish market falls outside its scope, even if Swedish residents are registered with operators that use such gambling services.
Withdrawals are only allowed to be made from the same payment service provider as the player made the deposit to. The only restriction is that when a player wagers, the currency has to be shown in SEK.
The Swedish Gambling Authority may, if there are particular reasons to do so, order an internet service provider to create a warning message that is clearly displayed in conjunction with visits to websites that provide gambling without the requisite licence.
The message shall inform visitors that the party that is providing the gambling lacks a licence in Sweden and is not under Swedish oversight and that the player is liable for the tax on any winnings.
If a gambling account is used or can be presumed to be used for the transfer of wagers or winnings to or from an unlicensed gambling operation for which a licence is required, a payment service provider may be ordered by the Swedish Gambling Authority to block electronic payment transactions to and from the account.
According to the Gambling Act, a licence to provide betting may include online betting as well as other betting i. While it seems clear that a betting operator cannot place self-service betting terminals in betting shops which are operated by the player, it would seem that a betting operator in a betting shop can facilitate the use of a betting terminal for the player via agent.
As described above, a licensee can provide land-based betting through a gambling agent. The licensee will continue to be responsible for the provision of the betting products but the gambling agent should be able to manage a betting terminal on behalf of the players.
According to the preparatory work, it is clear that the government intends to prevent betting terminals from being used in restaurants and sport bars.
The main rule is that the gambling operator is liable for all services it provides to the player, e. Players are not subject to any sanctions for participating in unlicensed gambling but may need to pay tax on winnings they have gained through such gambling.
Those who intentionally or through gross negligence provide any unauthorised or unlicensed gambling when authorisation or a licence is required under this Act and those who intentionally or through gross negligence promote participation in unauthorised or unlicensed gambling shall be fined or imprisoned for a maximum of two years.
There will not be any sentencing in minor cases. Crimes specified above that have been committed intentionally and that are felonious are punishable by imprisonment for a minimum of six months and a maximum of six years.
In judging whether a crime is felonious, particular attention shall be paid to whether or not the offence was committed as part of a crime that is carried out professionally and systematically or is far-reaching or, alternatively, of a particularly dangerous nature.
If a payment service provider fails in its obligation to reject a payment order pursuant to regulations issued by the government or violates a decision on payment blocking, the Swedish Gambling Authority may decide that the payment service provider must pay a pecuniary penalty.
Those who take inappropriate actions to manipulate the outcome of a game shall be imprisoned for a maximum of two years for cheating.
Crimes that are felonious are punishable by imprisonment for a minimum of six months and a maximum of six years.
In judging whether a crime is felonious, particular attention shall be paid to whether or not the offence was committed as part of a crime that is carried out systematically or is far-reaching or, alternatively, of a particularly dangerous nature.
Regarding attempts or preparations for unlawful gambling operations or cheating, felonies shall be prosecuted in accordance with the Swedish Penal Code.
Typical examples of local enforcement actions would need to be divided into licensed gambling operations and unlicensed gambling operations. If a licence holder fails in their obligations under the Gambling Act or under regulations or guidelines that are issued by virtue of the act, the Gambling Authority shall order the licence holder to rectify the matter within a given time frame or decide on a prohibatory injunction, a change of conditions or remarks.
If a licence holder has received remarks or warnings without complying, the Gambling Authority may decide that the licence holder shall pay a pecuniary penalty.
Seizures may be made of gambling equipment or other items 1 for which there are reasonable grounds to believe that they are pertinent to the criminal investigation, or 2 which can be presumed to be liable to confiscation under the Gambling Act.
Wagers taken in conjunction with a crime according to the Gambling Act shall also be declared forfeit. Since the new Gambling Act enters into force on 1 January , we do not yet know how common prosecutions and other sanctions will become.
Currently, prosecutions are very uncommon, but the Swedish Gambling Authority continuously tries to enforce injunctions and pecuniary penalties on those who advertise operators who do not hold a Swedish licence but target the market.
Sweden is a member of the European Union and is directly affected by EU decisions. So far, international operators have used EU law and the fundamental freedom to provide services as a shield when providing gambling in Sweden without a local licence, but with the new Gambling Act entering into force there should be little or no possibility to refer to such EU law and case law.
Normally, gambling debts should be enforceable under the new Gambling Act. However, wagers as well as other exchanges taken or made in conjunction with a crime according to the Gambling Act shall be declared void and money may be forfeited.
The Swedish Government has appointed an inquiry to investigate the new conditions for sports organisations and horse organisations following the re-regulation of the Swedish gambling market.
The instructions from the government also include an assessment of the current state monopoly Svenska Spel and its adaption to the new laws as well as an assessment on how to further counteract any damage caused by gambling.
The Swedish Agency for Public Management has also received instructions to follow up on the re-regulation of the gambling market.
It shall, in particular, assess how it affects public health, consumer protection, state finances and the financing of good causes.
It is still early days for the new Gambling Act and it is not yet possible to predict what proposals may come up once reports and assessments from the above investigations have been published.
The author would like to thank Ario Mansoori and Malene Linnebjerg, Associates at Nordic Gambling, for their invaluable contribution to the writing of this chapter.
The content of this website is for general information purposes only and does not purport to provide comprehensive full legal or other advice.
Global Legal Group Ltd. This material is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be taken from a qualified professional when dealing with specific situations.
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Home Practice area Gambling Sweden. Relevant Authorities and Legislation. Relevant Product Who regulates it in digital form?
Who regulates it in land-based form? Poker Swedish Gambling Authority. Lotteries Lotteries Swedish Gambling Authority. Skill games and competitions with no element of chance Tax agency and administrative authorities.
Application for a Licence and Licence Restrictions. Maria McDonald Nordic Gambling. Sign up for email updates to this Guide.
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