A look into gambling laws in Scandinavia

With the growth of online gaming, most countries have had to take a decisive stance on whether they wish to legalize gambling altogether.

Unlike the traditional brick-and-mortar casinos, whose regulation and control was easier, online gaming quickly permeates borders, thus necessitating the adoption of decisive measures.

Among the Scandinavian countries, we find varying governmental reactions on the issue. While some countries seem to have readily embraced the industry, others adopt a more conservative approach.

In this discussion, we shall be looking at specific Nordic countries and their regulatory framework on gambling.

We shall also delve into the governmental agencies responsible for monitoring gambling activities in those countries and the different gaming activities allowed or restricted in each country.

Norway

Gambling in Norway falls under the purview of the Norwegian Gaming and Foundation Authority.

Norway is among the earliest Scandinavian countries to legalize gambling. The industry is regulated under the Totalisator Act of 1927, the Gaming Scheme Act of 1992, and the Lottery Act of 1995.

However, despite the early legalization of the industry, the rules still retain a conservative and relatively restrictive approach for operators.

As a result, most private companies wind up without licensing approvals even though the law provides for license eligibility.

Currently, the industry is only run by two licensees, Norsk Tipping and Norsk Rikstoto, both owned by the state.

While the former company deals with lotteries and sports bets, the latter concerns itself with horseracing

Sweden

The Swedish gambling scene is regulated under the Swedish Gambling Act, complemented by a raft of other rules and legislation.

Of all the Nordic countries, Sweden's gambling legislation is arguably the most comprehensive. It provides six different types of licenses to casinos depending on the kind of games they intend to offer.

The license fees and levies are also clearly outlined. An applicant is given the option of selecting the duration of the license they seek, with the maximum period applicable being five years.

Oversight is by the Swedish Gambling Authority, which oversees online and land casino operations.

Regulated games include poker, casino games (blackjack, roulette, and slots), poker, bingo, sports betting, and fantasy betting.

Lotteries are regulated by both the Swedish Gambling Authority and the local municipalities where the casino is registered.

However, Social and skill games are only regulated by the administrative authorities and relevant tax agencies.

Denmark

Gambling is legal in Denmark and is regulated by the Danish Gambling Authority (DGA). The DGA oversees both land-based and online gaming activities.

The activities allowed under Danish law include poker, bingo, betting (including fantasy betting), horse racing, lotteries, skill games, and social betting.

The legal framework is set up under the Danish Gaming Act, which, besides establishing the DGA, also stipulates the requirements that an establishment must meet before offering paid gaming services.

These include licensing requirements, payment methods (including e-money), and consumer protection. The law also provides rules to safeguard a player's right when it comes to withdrawing from a transaction.

For lotteries (or games of chance), bets (games of conditional results), and any games where the outcome depends on an occurrence and skill, gaming establishments must take out a mandatory license.

Finland

Finland has a somewhat interesting legal framework for gambling operations.

While gambling is legal and regulated under the Finnish Lotteries Act, the industry is monopolized by the state-owned gaming operator known as Veikkaus Oy.

Oversight on all gaming operations falls under the mandate of yet another governmental institution- The Ministry of the Interior and the Gambling Department of the National Police Board. It oversees all digital and land-based gambling in Finland.

Equally interesting, though, is that the Finnish law only regulates a handful of games and leaves the rest unregulated. Casino games (blackjack, roulette, and slots), poker, bingo, betting, horse racing, and lotteries are among the regulated games.

Other games such as fantasy betting, skill games, and social games are not expressly regulated.

Given the monopolistic nature of the government-owned gaming platform in the country, the law does not require the issuance of licenses to Veikkaus Oy.

Faroe Islands

Unlike Greenland (which adopted the Danish gambling laws), Faroe Islands opted not to place themselves under that jurisdiction.

For starters, there are no physical casinos on the Islands.

Nonetheless, online gaming is legal in the Faroe Islands, with popular activities being online sports betting, bingo, poker, and online lotteries.

Just as with Finland, these games are offered under a monopolistic platform known as the Danske Spil. It is an online gaming site that accepts players from any part of the territory.

The Danske Spil is a government-owned platform that needs no license to operate. So monopolistic and restrictive are its regulations that even foreign cruise ships have to suspend their gaming activities while docked at the Faroe Islands' Port.

The regulated games mainly comprise lotteries, while non-regulated activities include fantasy betting, loot gambling, and social gambling. Bloodsports betting is illegal in the Faroe Islands.

Iceland

The only type of gambling that is legalized in Iceland is non-profit charity gambling. The General Penal Code of Iceland criminalizes professional gambling.

It also criminalizes the facilitation or promotion of professional gambling activities or any profiteering from gambling activities.

Naturally, therefore, there are no landed casinos in Iceland.

The gambling ban extends to online casinos in Iceland. Interestingly enough, however, Icelanders may participate in online games offered by other offshore casinos, provided those platforms are registered in other EU jurisdictions.

Otherwise, players are confined to charity and non-profit gaming, and even then, the permitted activities are limited to lotteries, slots, bingo, and sports betting.

The Iceland Financial Services Authority is the body tasked with overseeing charitable gaming in the country.

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes