» » » » » » » » Gambling taxes and barriers in Sweden

Gambling taxes and barriers in Sweden

Flag_of_Sweden.svg

Taxes

Taxes on lotteries are established in the Law on Tax loteries.990 The rate applied is 36% of the sum remaining after gains deducted from the total of paris (Art. 1b).

Taxes on roulette tables are determined based on the number of tables that the operator is authorized to posséder.991 Namely:

– 2000 SEK (241 796 euros) per month for a table.
– 4000 SEK (429 592 euros) per month for two tables.
– 9000 SEK (966 721 euros) per month for three tables.
– 18000 SEK (1933.44 euros) per month for four tables.
– 25000 SEK (2 684.54) per month for five tables.
– Over 5 tables: 5000 SEK (536 935 euros) per table.

Svenska Spel and Casino Cosmopol are generally exempt from any tax on lotteries and jeux.992 However, the state determines the allocation of profits: the statutes of Svenska Spel (Casino Cosmopol belongs to this public institution) provide that all proceeds available to be used in accordance with the will of the Etat.993. In 2004 the full benefit, or SEK 4,961,113,937 (532,798,380.99 euros) was distributed to the Swedish Sports Confederation, the National Committee for Youth, cultural associations and Etat.994

non-profit organizations are also exempt from tax on lotteries (art. 1a p. 4).
Concerning gaming machines, no tax is due if the prices are not silver (Lotteries Act art. 1a p.6). If prices are silver, it is levied a tax of 36% of the remaining amount once the price deducted from the total of paris (Art. 1b).

For horse paris, ATG is subject to tax at 36% of the remaining amount once the price deducted from the total paris.995 In addition, ATG must distribute annually 38 million SEK (EUR 4,080,966.94) to the equestrian sector. 996

The bingo, no tax is payable if prices are not in money (art. 1b). If prices are silver, it is levied a tax of 36% of the remaining amount once the price deducted from the total of paris is however recalled that as Svenska Spel as non-profit organizations exempt from tax. 997

Finally there is no need to address the media since only gambling Svenska Spel has permission to organize this type of play.

LISTING

LEGISLATION Enacted

General

– Tax Act on the game (1972: 820) (Lag om pa skatt spel)
– Ordinance empowering the National Inspectorate 1994 games: 1452 (Förordning Instruktion med för Lotteriinspektionen)

Lotteries

– Lotteries Act (1994: 1000) (Lotterilag)
– Ordinance on lotteries (1994: 1451) (Lotteriförordning)
– Tax on Lotteries Act (1991: 1482) (Lag om lotteriskatt)
– Recommendations 1999-12-21de the National Inspectorate games on lotteries which are considered true lotteries under section 16 of the Lotteries Act (1994: 1000) on their registration according to Article 17 and on exempted the Lottery permit requirement under Articles 19 and 20 (rad för allmänna Lotteriinspektionens lotterier som efter anordnas tillstånd till egentligt Lotteri av med stöd 16 § lotterilagen (1994: 1000) Registrering enligt 17§ samt tillstandsfria lotterier enligt 19 och 20 §§ lotterilagen)
– 2004-10-19 Instructions of the National Inspectorate games to lotteries and bingo (Villkor för och lotter slumptalsgeneratorer)

Casino Gaming

– Casinos Act (1999: 355) (Kasinolag)
– 2004-11-10 Instructions of the National Inspectorate games on the control of authorizations according to lottery law to organize games of roulette, dice or cards (Villkor, Kontrollbank och för ordnings-Bestämmelser tillstånd enligt lotterilagen (1994: 1000) att ANORDNA roulett, tärnings- eller kortspel)

– 2004-12-22 Permission for AB Svenska Spel to operate casino games (tillstånd att ANORDNA Kasinospel)

Machine Gambling Outside Casinos

– Act on the organization of certain gaming machines (1982: 636) (Lag om anordnande av visst automatspel)
– Ordinance on the organization of certain gaming machines (2004: 1062) (automatspelsförordning)
– Guidelines Dnr 734/2001 and Dnr 399/2004 on operating conditions and control of gaming machines
– Dnr 734/2001 Directive on the technical requirements for the game controllers
– 2004-12-22 Permission for AB Svenska Spel to operate gaming machines (ansökan om att tillstånd ANORDNA värdeautomater spel pa)

Betting

– 2004-12-22 Permission for ATG organize paris on equestrian competitions (tillstånd att ANORDNA vadhallning med i Samband hästtävlingar m x m)
– 2005-02-10 Authority to organize paris on the song contest “Melodifestivalen” and “Eurovision song contest” (ansökan om att tillstånd ANORDNA vadhallning pa Melodifestivalen och med fasta Eurovisionsschlagerfestivalen odds).

Bingo

– Requirements of the National Inspectorate games on issuing licenses for bingo, LIFS 2004 1 (Lotteriinspektionens författningssamling). This text is currently being revised (LIFS 2005: 1), with two exceptions, it is only of editorial changes proposed
– Recommendations of the National Inspectorate 2002-08-26 games on the implementation of Article 22 of Law on Lotteries (authorization) and on the control of bingo games operated since 1 January 2003 (lotteriinspektionens allmänna rad för tillstandsgivning entigt 22 § lotterilagen och kontroll i fraga bingospel om och som bedrivs fran med den 1 januari 2003).

Media Gambling Services

– Requirements of the National Inspectorate of games on the technical requirements for operators of certain types of lotteries distributed by electromagnetic waves, LIFS 2002: 1 (krav om pa Lotteriinspektionens fördeskrifter utrustning som används anordnare av av vissa lotterier som med förmedlas Hjälp av elektromagnetiska vagor)

– 2002-10-28 Directive on operating conditions and control of lotteries that are broadcast on electromagnetic waves (Riktlinjer för villkor, Kontrollbank och för ordnings- Bestämmelser lotterier som med förmedlas Hjälp av elektromagnetiska vagor)

BARRIERS

Overview

General

The Swedish Supreme Administrative Court took a position on two occasions on the issue of compliance of the Swedish gaming market with Community law. We shall present the judgments No. 5819-01 and No. 7119-01 of 26 October 2004.

– Judgment of the Swedish Supreme Administrative Court of 26 October 2004 (No. 5819-01)

The National Inspectorate of games has fined well as an injunction to immediately stop its illegal activity a company that served as an intermediary in Sweden to offer gaming services from a foreign company.

The Company has appealed this decision to the Supreme Administrative Court. It alleged non-compliance of the Swedish gaming market with the provisions of Community law.

In this case, the Supreme Court begins by recalling that the Law on Lotteries a general principle of submission Lottery authorization. It then points out that the purpose of the Swedish legislation on gambling is to protect individuals and society as well as directing the lottery revenues to the public sector or to the goals of general interest.

Section 38998 of the lottery law prohibits soliciting, professionally or in another profit, the participation of people in lotteries organized in Sweden but without the necessary authorizations or held abroad. Section 52 of the same text empowers the supervisory authority to take the necessary measures to enforce the legislation on lotteries, measures which may be accompanied, as in this case, periodic penalty payments.

The main question in this case is whether the prohibition imposed by the supervisory authority in conflict with Community law, and therefore should be canceled. The Court notes that it is clear that the prohibition at issue, like all the laws of Sweden, can not easily be reconciled with the Community provisions enshrining the freedom of establishment and the free movement of services .

It notes that the treaties and the case law of the Court of Justice of the European Communities agree that restrictions on the principles involved could be justified in certain circumstances. The Supreme Court here referred to the ECJ case law which fixed line criteria to justify a breach of the principles of freedom of establishment and movement by national rules on lotteries (Schindler she cites Case (C-275 / 92) Läärä (C-124/97), Zenatti (C-67/98) and Gambelli (C-243/01)).

She says that it has to decide whether the Swedish legislation on gambling is compatible with Community law.

– 2002-10-28 Directive on operating conditions and control of lotteries that are broadcast on electromagnetic waves (Riktlinjer för villkor, Kontrollbank och för ordnings- Bestämmelser lotterier som med förmedlas Hjälp av elektromagnetiska vagor)

It notes that under it the central issue is whether the restrictions adopted by Sweden are suitable to achieve the compelling reasons prosecuted, if they are necessary and whether they are proportionate.

Once these recalled principles, the Court is engaged in monitoring compliance of the Swedish Law on Lotteries with Community law.

She says that despite his awkward wording, Article 38 of the Law on loteries999 does not create illegal discrimination based on nationality. The prohibition of the promotion of gambling in light of a monetary benefit applies to all lotteries, national or foreign, for which no official authorization has been granted.

Next, the Court decides that the objectives pursued by the Swedish legislation are as many legitimate, under Community law, infringements of the principles of freedom of establishment and free movement of services.

The argument against the Swedish system is that it would not apply in practice the policy objectives on which it is based. In particular, the appellant asserts that the authorities who enforce the law have no real intention of limiting the participation in games but want instead promote while preventing foreign competition. He cites in support of this thesis is that Swedish companies to develop games an important marketing policy and continuously introduce new forms of attractive games, so much so that the gaming market is growing steadily.

The Supreme Court acknowledged that the approved Swedish gaming companies use an intense marketing policy and, thus, they encourage consumers to participate in lotteries, games of chance and paris. But according to the Court, this is not sufficient to disqualify the Swedish system. It notes that Swedish companies operate in practice in a competitive market since the Swedish are free to choose to play abroad. It is therefore, according to the Court, the Swedish operators are actively promoting their games if they want consumers to choose to participate in these, rather than foreign offers, and thus they enjoy effective protection of their security.

The Court also rejected the argument of the appellant that Sweden is ultimately interested only profits from the game and do not really take into account the aspects of protection of public order.

Finally, the Court decided that if, indeed, certain aspects of Swedish legislation and the way it is applied are not exempt from criticism, provided the system as a whole is consistent with Community law.

It notes that the Swedish Government appointed by Directive (2004: 76) an expert with a mandate to make proposals to adapt Swedish legislation to recent developments in EU law.

– Judgment of the Swedish Supreme Administrative Court of 26 October 2004 (No. 7119-01)

Someone has made available on its website a link to the website of a foreign company offering gambling. By a decision of 8 December 2000, the National Inspectorate games ordered him to stop offering this link. This person has filed an appeal before the Supreme Court by invoking the inapplicability of the prohibition contained in Article 38 of the Law on Lotteries If espèce1000. He states in this regard that the proposed link that leads to a general advertising site to a company whose activities is one of the proposed gaming services. He also argues that section 38 violates Community law.

The National Inspectorate games contends that in this case the link does not lead to a general page of advertising on society but to offer paris on horse races.

The advertised was well to push participants to the game.

The Supreme Court reaffirms, based on its judgment of 26 October 2004, that Article 38 of the Lotteries Act does not infringe Community law and decided that in this case the decision of the National Inspectorate games is based.

The Supreme Court received in other cases similaires1001. The parties have each time urged to seek a preliminary opinion of the ECJ but the Supreme Court still far their opposite end of inadmissibility, arguing that it had already decided this question in occasion of its judgment of 26 October 2004.

The Court of First Instance of Stockholm has also had occasion to decide a dispute relating to infringement of the lottery law. In this case, the editor of a major daily newspaper published in its 42 advertisements for a foreign company offering gambling. The Court sentenced him on the basis of Article 38 of the lottery law and jurisprudence of the Supreme Administrative Court.

Lotteries

The law of 9 June 1994 on lotteries (1994: 1000) applies to lotteries for the general public as well as privées1002 lotteries organized as bingo, gaming machines, wheels games, dice games and cards, as they are organized to gain.

It largely defines loterie1003. He meant by this term (Article 3) any activity during which one or more participants may, with or without a stake, obtain price of an amount greater than those that can get the other participants. The participant should not be able to influence the outcome by its own moyens1004. The term lottery and includes the following:

– The draws lots, guessing-games to paris or other similar methods;
– The fair games, fair and amusement parks;
– Bingo, gaming machines, wheels, dice games, card games, games of chain letters and other similar games;

This list is not exhaustive; the target established by law (Article 3) is to consider the nature of the game in question to determine whether it is or is not a lottery. Section 9 of the Act provides that the organization of lotteries is only possible on the condition of having obtained an administrative authorization. It is granted for a period and a specific geographical area. This geographical area corresponds in principle to that on which the beneficiary of the authorization primarily operates (Article 11); it is usually the municipality or the province. The average duration of authorizations is six months. Article 10 provides that permits may be granted only to the extent that is reasonably expected that the activity will be conducted in accordance with the general interest and in accordance with the conditions imposed and regulations.

Section 12 of the Act states that the institution in charge of issuing permits may submit the benefit of these special conditions, to a public order regulation, and an inspection system.

The law distinguishes two types of lotteries: Lottery strictly and others. Each of these categories has a particular regime. Article 4 of the law states that only lotteries within the definition laid down in Article 3 are lotteries in the strict sense. Horse racing and the related paris sports are not considered lotteries in the strict sense.

The administrative authorization to operate a lottery in the strict sense can only be granted to a non-profit association lucratif1005 of Swedish nationality and (Article 15):

– Main purpose, and it is in its statutes, promoting public interests within the country;
– Engages in activities that achieve such objectives;
– Does not preclude any person from membership unless there are special reasons due to the nature and scope of activities of the association, its purpose or for any other reason;
– Needs in the benefits of the gambling activity for its action.

Notwithstanding, with proof of special reasons, it is possible to grant an authorization to an entity other than a non-profit organization and a non-profit organization whose action in favor of the public interest takes place outside Suède1006 (Article 15).

The authorization may be granted if the following conditions are met (Article 16):

– Gains amount to at least 35% and at most 50% of the value of enjeux1007;
– The share of income devoted to gains tickets is indicated on lottery tickets, subscription lists or where the lottery is held;
– It is reasonable to think that the lottery will provide the candidate with the operating permit sufficient revenues and that these will be used to promote public interests provided by the statutes of the organization;
– Lottery tickets are sold in a dispenser, the law requires the surplus: the price list has been established in advance; the prizes are awarded by lottery in advance and in the presence of an authorized inspector by the supervisory authority; the machine does not distribute itself prices.

Organizations that meet the requirements of Article 15 and wish to organize lotteries and municipal level require authorization within the meaning of Article 16 and be registered with the municipality in question. Registration allows them to organize lotteries for three years at the common designated (Article 17). This form of organization of lotteries is only possible to the extent that:

– Lotteries are held in the municipality or municipalities in which the organization operates;
– Lotteries are not organized from a fixed point of sale that is made available by a service establishment;
– The total amount of the issues involved for lotteries on the three-year period does not exceed 20 times the basbelopp1008;
– Prices distributed in the form of money have a maximum of basbelopp
– The value of gains distributed on the occasion of each lottery is at least 35% of the value of the stakes and a maximum of 50% thereof;
– The share of income devoted to gains tickets is indicated on lottery tickets, subscription lists, or instead of running the lottery;
– Those responsible for the lottery are approved by the authority in charge of registration.

In certain cases exhaustively listed obtaining a permit is not required (Articles 19 to 20). Such will be the case if (Article 19):

– The lottery is held as part of a demonstration or a meeting prepared by the organization or in which it participates; or if the lottery is held as part of a bingo prepared by the organization;
– The lottery takes place exclusively in the place where stands the event, the meeting or the bingo;
– The value of each set does not exceed 1/6000 of basbelopp;
– The value of the most important gains does not exceed 1/6 of basbelopp;
– If the number of stakes and prizes and their value are set in a predetermined pattern, the total value of earnings is the minimum 35% and maximum 50% of the value of the stakes;
– The share of income devoted to gains tickets is indicated on lottery tickets, subscription lists, or is displayed where applicable the event;
– Ticket buyers are informed at the time of purchase, the place and time where prizes are awarded;
– Prices are from the public comes before the closing day of the event or meeting, unless the prices were randomly assigned before the sale of the participation notes.

The authorization will not be required (Article 20):

– Whether the lottery is organized on the occasion of a public event in recreational purpose; a public event for the promotion of a cause of public interest or a public gathering for an artistic performance in support of a cause of public concern;
– If the lottery proceeds only on the site of the event or gathering
– Whether the prices are only the shape of goods or services;
– If the value of each setting does not exceed 1/6000 of basbeloop;
– If the value of the most important gains does not exceed 1/60 of basbeloop;
– If the gains are immediately distributed;
– If the total value of earnings is the minimum 35% and maximum 50% of the value of the stakes, and the number of stakes and prizes and their value are set in a predetermined pattern;
– If the share of income devoted to gains tickets is indicated on lottery tickets or displayed in buildings where the lottery is held.

Articles 39-41 designate the authorities responsible for issuing the authorization. These vary according to the geographic extent over which door the lottery event:

– Municipal committee appointed by the municipality is responsible for lotteries organized in one town;
– The Committee of the province is responsible for lotteries organized in several municipalities within a province ,;
– National Lottery Inspectorate is responsible for lotteries organized in several provinces.

Section 51 of the Act provides that the authority responsible for the authorization may decide to revoke a license if the beneficiary does not respect the law or the conditions for granting it are no longer met.

Moreover, the law provides criminal penalties for persons who intentionally or by gross negligence unlawfully arrange a lottery or illegally hold gaming machines (Article 54). They face a prison sentence of up to six months or a fine. The provisions of the Swedish Penal Code on complicity are applicable to this offense (section 56 of the Act refers to Chapter 23 of the Penal Code).

The stakes received as part of such illegal organization, as well as equipment, materials and other goods used for or in connection with the offense may be confiscated unless such a measure is manifestly unreasonable (Article 58).

Finally, the law organizes a derogation to that fixed it and entrusted wide powers to the government as it provides in Article 45 that he may grant special permits for lotteries in other assumptions and according to procedures other than those prescribed by law. Such authorizations however, can not intervene in the field of chain letter games or similar games or to operate machines distributing money, winning tickets or tokens.

This important prerogative recognized government is further confirmed by Article 38 of the law. It states in the first instance it is forbidden to promote, as part of a commercial operation or otherwise, participation in lotteries organized abroad saw a gain. He then added that the government or a body designated by it are nevertheless allowed to violate this rule to the following conditions:

– The lottery must be held on the occasion of international co operation in the field of games to which Sweden is a party;
– The organizing entity shall be entitled in its domestic law, to organize lotteries or paris and participate in international co-operations.

According to Svenska Spel, Article 38 has lost its strength, since many foreign companies are advertising directed towards Sweden through internet.1009 Similarly, a number of television programs are sponsored by foreign lotteries .1010

Based on Article 45 of the Act, the Government has empowered Svenska Spel, the state-owned company, to organize all forms of lotteries (General Authority of 22 December 2004)

This specific authorization (paragraph 8.9 of the annex to the authorization) that Svenska Spel must ensure the maintenance of social order and the protection of the health of players. It is accountable to the Government of the steps it has taken in this direction.

Casino Gaming

The law of June 3 199 on casinos (1999: 355) sets the rules for games played in casinos.

Section 1 of the Act defines the casino games like roulette, dice and card games and similar games offered in a specially designed for this purpose (a casino). Article 2 provides that only the recipient of an authorization may organize casino games (Article 2). Article 2 of the law stipulates that the license to operate a casino also covers the operation of gaming machines as defined by Article 6 of the Law on Lotteries, namely:

– Machines distributing lots, provided that obtaining lot depends at least partly of chance;
– Machines distributing money, provided that the gains depend largely random;
– The chips machines, provided that the gains depend mainly random. Tokens are considered those machines that only provide valuable certificates, gaming tokens or similar items;
– Machines distributing money and for which the gain depends on all or part of the ability of the player.

Section 11 of the Act provides that authorizations should be granted only fully state-controlled enterprises, whether that control is direct or indirect. Article 12 states that the granting of authorizations suppose it is established that the activity can be conducted appropriately by the candidate. The granting of authorization is subject to compliance with special conditions of public order regulations, inspection procedures (Article 12).

The authority in charge of issues related to operating licenses for casinos is the government (Article 13). It may delegate to the National Gaming Inspection authority to establish special conditions as well as the public policy rules referred to in Article 12. This is also the National Inspectorate games that must ensure compliance the casinos on the law and the regulations thereunder (Article 14).

Permissions can be revoked or amended if the licensee does not comply with the conditions and regulations which apply to it pursuant to the law on casinos or there are other reasons to amend or revoke its authorization (Article 15). Revocations and amendments are normally managed by the Government. They are by the National Inspectorate when games are concerned the regulations and conditions it issues.

Section 3 of the law requires that the maximum number of casinos in the country is six.

Participation in the games offered by casinos are subject to strict control since officials casino must keep a record of visitors with their name, personal identification number and home address. The register should also include a photograph of the customer and the indication of the period to which it went to the casino.

Section 9 of the Act prohibits casino casinos provide credit to players. The casino operator must also ensure that no title credit proposal connection with the establishment is made to the player.

The Government has issued a special permit Svenska Spel operating casinos (authorization of 22 December 2004). It has delegated this activity to Casino Cosmopol

Points 3 and 5 specify the obligations of Casino Cosmopol in the organization of casino games. Point 3 of the authorization requires him not to resort to an aggressive marketing policy. The aim is to ensure the maintenance of social order does not overly encouraging people to play Point 5 provides that Casino Cosmopol must show active in the fight against compulsive gambling; it should in this regard ensure public information and training of its staff.

Furthermore, the license provides that in matters of casino games, the last player must not exceed twice the basbelopp.

The law of 9 June 1994 on lotteries (1994: 1000) deals with games that are traditionally organized in casinos. She aims for its part that the games of this nature performed outside casinos since the law on casinos is entirely dedicated to the activities of casinos. The lottery law deals with roulette and dice games (Article 32 and 33) as well as card games (Article 34).

The organization of roulette and dice games is subject to obtaining an administrative authorization (Article 32). Thereof may be granted if:

– The game is organized on the occasion of a public or attraction; in the context of hotel or services; the beneficiary of a license to serve alcoholic beverages or; within vessel traffic internationally;
– The value of the bets of the player, with regard to each individual opportunity to win, do not exceed 1/6000 of basbelopp;
– The value of the most important gains do not exceed 1/200 of basbelopp;
– The candidate for authorization is qualified to conduct the operation.

Article 33 states that the authority issuing the authorizations must take account, in its choice of the award, the financial terms of the transaction, the applicant’s experience, willingness and ability to comply with laws and its obligations to the state. Regarding the card games, the granting of the authorization implies (Article 34):

– The game is organized on the occasion of a public or attraction; in the context of hotel or services; the beneficiary of a license to serve alcoholic beverages or; within vessel traffic internationally;
– The value of the player’s bet against each individual opportunity to win does not exceed 1/600 of basbelopp;
– The value of the most important gains do not exceed 1/400 of basbelopp;
– That the candidate for the authorization has the skills required for the conduct of the operation (the assessment must be made taking into account the criteria given in Article 33).

The authority in charge of issuing permits for roulette, dice and cards is the National Inspectorate lotteries.

Machine Gambling Outside Casinos

The law of 9 June 1994 on lotteries (1994: 1000) applies to gambling machines (Section 1) and covers both mechanical machinery and electronic equipment (Article 6). The machines are covered:

– Ones offering lots, provided that obtaining lot depends at least partly of chance;
– Those distributing money, provided that the gains depend largely random;
– The chips machines, provided that the gains depend mainly random. Tokens are considered those machines that only provide valuable certificates, gaming tokens or similar items;
– Machines distributing money and for which the gain depends on all or part of the ability of the player.

The law requires obtaining an administrative authorization to exploit such machines (Article 24).

For machines distributing lots, the operating license may be granted only if the following conditions are met (Article 25):

– The game is offered as part of a public attraction, like an amusement park;
– The value of put players do not exceed 1/7000 of basbelopp;
– The value of the most significant price does not exceed 1/3000 of basbelopp;
– The name of the operating license holder appears on each machine;
– It appears that the machine will not be used for any function other than that provided to support the license application;
– It seems that everything is in good order at the place where the machine will be stored.

Regarding the token machines, machines distributing money and those granting cash winnings into account the ability of the player, the operating license may be granted in well-defined situations:

– If the machine is made available on a ship participating in international trade (Article 26);
– Or, for tokens machines, if (Article 27): The game is organized in connection with catering services, hotel or bingo or if the provider has a flow permits alcoholic beverages; if the value of the player’s set does not exceed 1/7000 of basbelopp per game; the value of the most significant price does not exceed 800 times the stake; a maximum of five chips machines is provided on each game site; the value of the prizes at stake is at least 85% of the value of bets; the machines can be controlled by means of telecommunications or communications systems based on computers; the name or item to identify the beneficiary of the authorization is on the machine; we can assume that the machine will not be used for a purpose other than that provided to support the license application; one can think that everything will be in good order at the place where will be stored the machine.

The law also establishes a system of authorization to enter into possession of the machines (Article 28). The law authorizes the entities responsible for issuing these permits to subject to special conditions and inspections and compliance protection provisions of public order. The entities that already have an operating license within the meaning of Articles 25, 26 and 27 do not need to obtain this additional authorization. It also goes well the copyright holder of the deceased who were receiving such authorization for a maximum period of one year and creditors of the debtor in bankruptcy until the conclusion of the bankruptcy. Finally, entities whose license has been revoked can keep the machines for a maximum of three months of that decision.

The authority in charge of issuing licenses for machines distributing lots, money, tokens and machinery involving the player’s skill is the National Inspectorate games.

The Law of 17 June 1982 on certain forms of gaming machines (1982: 636) is organizing a special regime for machines pay games that do not distribute profits or simply offer the right to replay the winners.

The operation of such machines is also subject to the granting of authorization by the National Lotteries Inspectorate (Article 3). This authorization must necessarily include a provision regarding the minimum age of participants and the hours of the games. The law expressly provides that this requirement stems from the need to fight against gambling.

General authorization of Svenska Spel of 22 December 2004 gives it the ability to operate such machines. Operation is limited to 7,500 gaming machines. For gaming machines there is an agreement between Sweden and Finland to enable gaming machines on ships operating a regular shipping line between Sweden and Finlande.1011 This agreement aims to harmonize the rules between the two states. 1012

Betting

The organization of sports paris has been allocated by the government, under the powers which are expressly delegated by section 45 of the Act loteries1013 at Svenska Spel and ATG. ATG has a monopoly on horse paris in any form (electronic or traditional) and Svenska Spel that of paris on sporting events (with the exception of some local dimension of events).

Their licenses were awarded their December 22, 2004.

The ATG activity results from a contract between the horse racing industry and the state. The company is controlled by the state: half of the executives and the ATG President are appointed by the state. The other party leaders are appointed by the ridge tile association of horse racing.

The special feature of the ATG operating permit is to distinguish between paris equestrian activities on races organized in Sweden and equestrian activities paris on races organized abroad. Both types of activities are subject to review by the National Inspectorate games.

The seconds are allowed, provided that the regulations established for racing in the Scandinavian countries are respected. Paris on races run abroad are only possible for a limited number of races, which went from 20 to 30 for the years 2005 and 2006. Moreover, the earnings return is higher for those from paris provided that the maximum threshold of redistribution issues 75% planned for the races held in Sweden can be exceeded. Finally, the minimum earnings threshold is lower for races organized abroad than to those organized in Sweden.

Point 5.6 of Annex 1 of the license ATG exploitation and point 8.9 of the Annex to general permit Svenska Spel provide that both companies should ensure the protection of social order and health players. They are accountable to the government measures taken in this direction.

The Court of First Instance of the province Södermanland has received a case concerning the representation on a website of a company logo with a link to a site paris abroad. The issue here was whether such representation was contrary to Article 38 of the Law on Lotteries. The Court decided 15 February 2005 that this was the case.

Furthermore, it should be noted that the government has agreed to the operation of dog racing. It has authorized, in the late 1990s, Svenska Spel to receive paris on dog racing. The organization of dog races based on collaboration between Svenska Spel and two organizations: the Swedish Federation of greyhound racing and the canine central company. However, this activity proved to be too unprofitable and Svenska Spel has decided to stop offering these paris in January 20061014. It is possible that the activity is taken over by the Swedish Federation of greyhound racing in the spring 2006.1015

Bingo

The law of 9 June 1994 on lotteries (1994: 1000) applies to bingo (Article 1) and defined as lotteries (Article 5):

– During which it is necessary that the participant is at the scene of the game (and he can sort of active participation) and buys a bingo card;
– Whose winners are the participants who chose their bingo card numbers match those drawn at random;
– During which the winner must claim the prize immediately.

Article 22 of the Act outlines the requirements for obtaining an administrative authorization to organize a bingo game.

The authorization may only be granted if:

– The value of the most significant price does not exceed the amount of a basbelopp;
– The value of the prizes at stake is at least 35% of the value of the stakes;
– A list of prize money is displayed in premises where bingo is held;
– It is foreseeable that the bingo organization provides substantial resources to the organization.

Licenses are granted for a maximum period of three years. Article 24 states that, in the context of the decision granting a bingo license, the actor responsible for its issue shall especially take into account the need of the organizing institution of bingo revenue. The law provides in this regard to promote associations promoting youth activities and associations to facilitate the integration of children and young patients in society.

Section 42 of the Act states that the committee of the province is responsible for granting authorizations bingo. However, the National Gaming Inspection is responsible for bingos are held in several provinces.

The general permit authorizes Svenska Spel organizing bingos.

Media Gambling Services

The law of 9 June 1994 on lotteries (1994: 1000) specifies in Article 21a that lotteries organized using television media, radio or other electromagnetic waves (especially internet and mobile phones) should be 1016 considered “genuine lottery” under the law. However, the law excludes paris in connection with horse races, sports competitions that are organized in more than one municipality and the chain letter games. The law provides for a principle of prohibition of such lotteries (Article 21 b). But explains that an authorization may be granted to organizations that meet the criteria set by Article 15 of the law (see point 2), provided that the requirements of Article 16 are met (see point 2) . The law specifies that licenses for organizing lotteries strictly within the framework of local radio stations, neighborhood or transmission cable may only be granted if the market for local lotteries is not affected. Article 21c of the Act specifies that lotteries strictly in audiovisual media can be organized without authorization when:

– The winners are selected on the occasion of the transmission;
– Participation in the lottery is not subject to the payment of a prize;
– The price value does not exceed 1/60 of basbelopp.

General authorization of Svenska Spel of 22 December 2004 allows it to organize such games.

Moreover, the Swedish government decided in late 2005 to allow Svenska Spel to arrange poker games online. The government justifies this expansion of scope of Svenska Spel by the desire to entrust this game offers a disinterested entity that is under the control of suédoises1017 authorities. This first trial is scheduled over a two year period. Access to games is subject to a number of conditions:

– The minimum age is 18;
– The challenges of the ceiling should be set beforehand (the maximum is 79 400 SEK, about 8,500 euros)
– Recourse to a limited advertising campaign, only in newspapers and on the Internet;
– An indication of a person assistance telephone number suffering from addiction – games during commercials for these games and the site’s offering;
– Svenska Spel’s commitment to actively fight against gambling addiction;
– The possibility for the government to withdraw unilaterally and without delay the permission for Svenska Spel if circumstances exigent1018.

990 Lag (1991: 1482) om lotteriskatt.
991 Tax Law on games, art. 10.
992 Tax on Lotteries Act, s. 1a p. 5.
993 See the 2004 annual report of Svenska Spel, p. 47.
994 The Swedish Sports Confederation noted in its response to the questionnaire sent ISDC, the Swedish sports clubs are very dependent on the contribution of Svenska Spel.
995 Tax on Lotteries Act, s. 1b.
996 See the 2003 annual report ATG, p. 41. The Swedish central organization for the sport gallop noted in its response to the questionnaire sent by the ISDC, the equestrian sports in Sweden are totally dependent on ATG income.
997 Tax Law on Lotteries art. 1a p. 4
998 Article 38 provides that no person shall, in the course of trade or otherwise, carried out for profit: 1. encourage participation in an illegal lottery in the country or abroad or 2. to receive stakes on prices distributed in legal lotteries without the consent of the organizer of these government or an authority designated by him may make an exception to the rule in the first paragraph to promote participation in lotteries organized outside the country if 1. the lottery is organized within the framework of international cooperation with Sweden in the lottery, and 2. if the foreign entity in charge of organizing the lottery has the right, under its laws, to organize lotteries or paris and participate in an international cooperation exercise.
999 Ibid.
1000 Ibid.
1001 Judgments of the Swedish Supreme Administrative Court of 8 December 2004, No. 3986-01, No. 3987-01, No. 3988-01, No. 1862-02 and No. 2043-02.
1002 A private lottery is a lottery involving a small closed group of people who know (see LARNEFELDT G., comment Law 1994: 1000, note 1 comment Karnov, Swedish law 2005).
1003 The aim of the choice of a broad definition was that the law can adapt to technological developments games.
1004 View LARNEFELDT G., comment Law 1994: 1000, Note 3 to comment, Karnov, 2005 Swedish law.
1005 object pursued by the association can be of all kinds: religious, charitable, sporting, political. As against the organization qualification ideal goal is no longer possible as soon as economic factors come into play. Thus, unions and other business organizations are disqualified.
1006 Ex. Amnesty International or the Red Cross.
1007 Coaching gains the following functions: the minimum threshold ensures a gain to the consumer and maximum threshold to avoid organizers are waging a major competition. This would in effect mean that this level always increases more, so much so that the benefit paid back for the actions of general interest will be less and less important.
1008 basbelopp is an income threshold set by the government that changes every year according to the consumer price index. It rises for 2006 to 39,700 crowns per month. Originally established for the purposes of social security, it serves as a reference amount in a large number of administrative and social areas.
1009 Information supplied by Svenska Spel in response to the questionnaire sent by the ISDC.
1010 Information supplied by Svenska Spel in response to the questionnaire sent by the ISDC.
1011 Agreement between Sweden and Finland on gaming machines on 1979-02-14 boats and modification 2001-03-22
1012 See the preamble to the agreement.
1013 View LARNEFELDT G., comment Law 1994: 1000, section 45, note 42 of the commentary Karnov, Swedish legislation in 2005.
1014 Sv Spel Lagger ned på spel hundkapplöpning, 20.09.2005 (Svenska spel ends the couses of greyhounds) http://www.svenskahundkapplopningsab.se/
1015 Info om i läget spelfrågan 26.11.2005 (information on the situation games) http://www.svenskahundkapplopningsab.se/
1016 It should be emphasized the importance that are taking internet games and games via mobile phones in Sweden.
1017 Svenska Spel får ordna Pokerspel över Internet (Press release of Government of Sweden, November 24, 2005 http://www.regeringen.se/sb/d/119/a/53800)
1018 Ibid.

© European Union

Leave a Reply

Your e-mail address will not be published. Required fields are marked *