sou · H5B330 · 2017-03-31 00:00:00 — Several of these gambling forms already exist today on the competitive section of the market. The future K includes sports gambling, which today constitutes 20 per cent of net turnover, billion, and online casino, which does not currently offer but will do so in a licensing system. It is thus one fifth of ’s current turnover that is pro- posed to be placed in K. In addition to this is 's planned online casino. The Inquiry's proposal means that ’s section with exclusive rights, etc. (E) includes gambling on token gaming and licences for landbased casino games in de- signated premises (Casino Cosmopol) as well as lotteries, both land- based and online. This corresponds to approximately 79 per cent of ’s net turnover. The Inquiry calculates that the two sections of might together reach a net turnover of billion three years after the Act’s entry into force. With the same delivery share to central govern- ment as before, i.e. approximately 55 per cent, billion of this may go to central government. Particular information on ’s exclusive rights, etc. The Inquiry’s proposed E, which corresponds to approximately 79 per cent of the company's current turnover, will have a shared exclusive right on lotteries together with the public interest associations and on essentially the same licence conditions. However, it is proposed that will pay tax, which the public interest associations will not need to do according to the pro- posal. Lotteries are deemed to be of great value to the public interest and there is no direct competition from online gambling companies or the equivalent, which means that there is also no need for chan- nelling. For token gaming , a continued exclusive right for is proposed. The primary motive of the Inquiry is promoting responsible gambling and inhibiting gambling on illegal gaming . The channelling that can take place here and that is deemed desirable is that which goes from illegal gaming to token gaming . There is otherwise no need for chan- nelling. The marketing of gambling on token gaming for con- sumers will not be permitted. The Government can take other factors into consideration than a purely commercial gambling company can, which is of significance in this case. The issue of token gaming is complex, and the Inquiry’s assessment is that if more significant amendments are to be made, this should be investigated separately. The time for this Inquiry has not allowed this. The Inquiry proposes that it shall only be permitted to grant a licence for landbased casino games in designated premises (Casino Cosmopol) to a state-owned company. The motive is to ensure that this will maintain responsible gambling, counteract crime, decrease gambling-related crime and limit social harm. Horse-race betting and ATG The Inquiry's proposal will include horse-race betting in the licen- sing system and in the competitive section. This means that ATG will become an operator like other gambling companies. These gamb- ling companies may enter into agreements with the harness and horse racing organisations that own the courses and other infrastructure. The agreements are negotiated between the parties and are not a question for the Inquiry. As a consequence of the Inquiry's pro- posal, it is proposed that the Government withdraw from its involve- ment in ATG and equestrian sport in the form it has hitherto had. The tax rate on net gambling revenue for horse-race betting is proposed to decrease from 35 to 18 per cent. With the current net turnover of approximately billion, this corresponds to a decrease of just under million. A total of billion of the current surplus proceeds goes to equestrian sport, primarily for its facilities. With more gambling companies in competition, agreements be- tween the sport and new gambling companies can be financed with an amount corresponding to ATG's possible decrease. This means that the net or revenues for the sport are assessed to be about the same as before re-regulation but with contributions from more ope- rators. It is assessed that ATG will have a decrease in its cost base of –150 million, given that no other gambling company enters the market. If this is the case, ATG's market dominance will de- crease correspondingly. Factors that speak in ATG's favour and that have a constraining influence on competitors are both that the ATG brand is strongly associated with the sport and safe gambling and that its established products are in themselves very strong brands, as well as the gamb- ling pool itself. At the same time, ATG anticipates entering the other parts of the gambling market’s competitive section, and this might offset some of the market loss in the equestrian area. Re-regulation creates a new competitive situation for horse-race betting. ATG will lose a limited part of its market and can compen- sate for this by offering other games available on the competitive market, primarily online games. Horse-race betting is expected to have a minor net gain in the next few years, with online gambling increasing slightly more than the decrease in landbased gambling. Central government tax revenues will decrease by approximately –150 million. The public interest associations The Inquiry's terms of reference state that it is of great importance that the non-profit, public interest organisations can continue to develop. Furthermore, the conditions for financing public interests shall continue to be good. Several of the public interest associations, often connected to a popular movement, obtain a not insignificant part of their financing through games and lotteries. Approximately billion per year goes back to and non-commercial purposes. The Inquiry proposes no major changes to the public interest associations. These associations will continue to be able to conduct lottery activities, both landbased and online, as well as landbased bingo on a partially protected market. These are proposed to remain exempt from tax. To the extent that the associations wish to operate gambling belonging to the competitive section of the market, the same conditions will apply to them as for other the gambling com- panies on that section of the market. Thus entry to the competitive section of the market with tax exemption will not be possible. Within the non-profit sector, this does not involve major revenues per organisation in relation to the other operators on the gambling market. This is true with the exception of the . The payout percentage for lotteries is low. However, these are strategic revenues for civil society, so without these revenues civil society would probably be smaller and partially lose its independence. Representatives of civil society argue that this is money with a high societal and social yield. The net turnover of the public interest associations’ games and lotteries was billion in 2016, which is 17 per cent of the market. The accounted for billion or 53 per cent. The volume has increased in recent years, by 12 per cent in the period 2011–2016. That this is a delimited sector with tax exemption and some oligopoly on lottery tickets and bingo does not mean that the sector would not be able to be exposed to external competition as regards the players. It is conceivable that other gambling companies will attract from these public interest lotteries and bingo. However, representatives of the sector believe that this risk is limited. In conclusion, the Inquiry’s assessment is that the public interest associations will hold their ground in the gambling market with a probable, but limited gain in the next few years. At the same time, the Inquiry would like to flag up a measure of uncertainty regarding tax exemption as this might come into con- flict with EU state aid regulations. The EU essentially specifies four conditions for being able to deviate from the state aid regulations in cases like these. Firstly, a derogation is to be applied in a non-discriminatory . It shall also be in response to a pressing public interest, really function on the basis of its purpose and finally entail intervention no greater than that to which the public interest corresponds. The Inquiry leans towards tax exemption for the public interest associations in this case corresponding to the stated conditions, but recommends that the Government as soon as possible after the Inquiry’s presen- tation makes a “pre-notification” to Commission in order receive a statement on the issue. Landbased commercial gambling, etc. The Inquiry believes that the current flat-rate model for the taxa- tion of “restaurant casinos” and casino games on in inter- national traffic should be retained. Here, the tax conditions are different to those proposed by the Inquiry for other sections of the gambling market. It is proposed that the tax be levied per gaming table at an amount of ,000. Like the winnings, the stakes are relatively low. If a tax rate of 18 per cent were to be applied, million more would be paid. Be- sides this, corporate tax of 22 per cent is paid. The Inquiry assesses this to be an effective order that fulfils its purpose. Nevertheless, this also has a state aid problem, and the Inquiry proposes that a pre-notification procedure with Commission also be initiated as soon as possible in order to find out if this is possible. As previously stated, the Inquiry proposes a division of into a competitive section and a section with exclusive rights, etc. has a dominant role on the market, and a division of the company is deemed to be delicate for several reasons. The general opportunities for to compete with an unregulated payout percentage are considered good. This is because is a large company with financial muscle and is now – like ATG – a strong and established brand, as are its products. A total of 48 per cent of those who gamble online have as their first choice, despite the fact that only has 22 per cent of the entire online gambling market. can derive advantage from being a well-known state operator with exciting games, which in addition to betting on sports, will now also be able to offer online casino and other games in competition with other companies. The Inquiry presents and discusses different options for hand- ling the division of in conjunction with a re-regulation so that it takes place as smoothly as possible and also contributes to market balance and competitive neutrality. A state-owned gamb- ling company operating in direct competition with others is, after all, essentially like any other gambling company. The Inquiry’s con- clusion is that the best option would be to sell the competitive section. The Inquiry notes, however, that the choice here involves the taking of a purely political position and will have major con- sequences for both and public finances. For this reason, the Inquiry submits no more concrete proposals concerning this. In the Inquiry's assessment, as soon as the Gambling Act has entered into force, it is fundamental that the two sections be kept just as separate as if they were two different companies so as to avoid cross-subsidisation and the disruption of competitive neutra- lity. Possibly, there could be some measure of joint administration and certain common functions. Some of the critical factors for the owner to particularly observe in the event of a sale are, for example, whether 's market share is to be limited initially, how the new ownership directives are to be designed, valuation of the company upon a sale, the social responsibility that should be taken for 's activities on and how the market entry of small companies can be pro- moted. Regardless of whether or not a sale occurs, it is the Inquiry's assessment that, provided sufficient measures are taken with regard to the separation of 's two sections, there are good conditions for a market situation to arise that has an acceptable and functioning operator composition from the aspect of competition. The design of the licensing system The Inquiry's proposal means that those wishing to provide or arrange gambling in are to have a licence. However, for “registra- tion lotteries”, registration with the municipality is sufficient. The principle means that , when cooperating with a licensed operator, are to be sure that they are dealing with a person or a company that meets a number of basic requirements that aim to protect and give them a fair and honest experience. Those possessing or manufacturing certain gambling equipment are also to have a licence, as are those manufacturing, providing, installing or modifying software for games in connection with on- line gambling. Which persons should then be the subject of approval? The Inquiry proposes that these should be the company's board, mana- gement and shareholders “with a qualifying holding”, i.e. owner- ship corresponding to at least ten per cent. The requirements that the Inquiry proposes be placed on appli- cants are •that they have the insight, experience and organisation needed to operate the planned activities, •that there is reason to assume that the planned activities will be operated in accordance with the law and other statutes regula- ting the activities, and •that applicants are also otherwise deemed suitable for operating the planned activities. This assessment is to take into account the reputation and capital strength of applicants. If a person in the company’s management or board no longer meets the legal conditions, the Inquiry proposes that the person should immediately leave the management or the board. There is an exception from the licensing obligation for games of skill, such as billiards, competitive and chess or when stakes and winnings are insignificant or where the games take place in private forms with low stakes and are not of an organised or professional nature. The Inquiry proposes that the name of Lotteriinspektionen be changed to . All licensing will be assumed by , which is pro- posed to be given a significantly expanded right to issue regulations, this being largely a result of the new Act’s character in terms of framework legislation. The Authority is to be responsible for the uniform application of the Gambling Act and the Act (1982:636) concerning the Arrange- ment of Certain Forms of Gaming , and for the appro- priate supervision and control of compliance with the legislation, and is to promote sound and secure development in the area of super- vision. is thus to be responsible for the issuing of licences, permits and regulations pertaining to the Gambling Act and the Act concerning the Arrangement of Certain Forms of Gaming . is to establish a council for gambling market issues, consisting of representatives of , the , the Swedish Financial Supervisory Autho- rity, the , the Swedish Authority and the Swedish Prosecution Authority. is to be the provider and administrator of a voluntary self-exclusion system that is binding on gambling com- panies. Furthermore, the Authority is to be responsible for a national platform against the manipulation of sporting events with regard to betting. The platform is to include representatives of the govern- ment agencies and organisations determined by the Government. The Authority assumes the licensing for which the Government is currently responsible with regard to . The Inquiry's proposal significantly increases the number of licensees, which in turn increases the extent of supervisory activities. Com- pared with the current Lotteriinspektion, it is assessed that the staff needs to be expanded by 50 per cent, i.e. about 25 persons. Gambling forms and risk, gambling responsibility measures and a self-exclusion register The Inquiry highlights the connections between gambling forms and the risk of developing gambling dependency. Several studies agree in stating that casino games, gaming for gambling for money (token gaming ) and certain inter- games online are the most risky forms of gambling. These are also the most popular forms of gambling and those which show the greatest increase. They are characterised by the short time for each individual game. The shorter the time between stake, outcome and the opportunity to gamble again in the same game, the higher the risk potential. 's survey, Swelogs (The Swedish Longitudinal Gambling Study), shows that of those who gamble on games with a high risk potential (e.g. online gambling and gaming ), seven per cent risk developing gambling depen- dency. The corresponding figure for games with a medium risk potential (e.g. sports betting and gambling on horses) is three per cent, and for games with a low risk (lottery tickets bought at an agent), just one per cent. This type of social study is a way of attempting to assess risk and dangerousness. However, the studies are relatively blunt instru- ments as they are based on categories of games. Instruments have been produced to classify the degree of dangerousness of a specific game, GAM-GaRD being an example. The weakness of these instruments is that they accommodate quite a lot of subjective elements that limit their validity. A third way to assess the dangerousness of games is to use sta- tistics on those who seek help for gambling problems. However, representativeness is problematic here. The Inquiry notes that it is difficult to specify the dangerous- ness of games. Besides this, the “dangerous” games are already on the market and are the most attractive. The approaches described each have their deficiencies and should probably be used with caution. They could possibly complement each other to give a picture of risk conditions in the area. The question is complicated by the fact that social and demo- graphic factors also show links with problem gambling. Socio- economically vulnerable groups and the foreign-born run a greater risk of developing gambling dependency. Men and young people are other groups that more easily develop gambling problems com- pared with women and elderly people. The Inquiry notes that it cannot be guaranteed that a new licensing system will not lead to an increase in gambling. is it possible to establish that a licensing system would lead to an in- crease in problem gambling. Enhanced gambling responsibility is a cornerstone of the new regula- tion of gambling. To a large extent, this aims at the gambling com- panies whose undertaking will be significantly expanded by the Inquiry's proposal. Under the Inquiry's proposal, gambling companies must take the measures necessary to prevent and reduce problem gambling where this is possible. Players are to receive correct information about how the game functions, about the risks of playing and how they can gamble responsibly. One starting point according to the Inquiry is that the gambling company analyses information from each player, since divergent patterns in their gambling behaviour can lead to the early detection of problem gambling. In addition to retaining the gambling age limit of 18 and the ban on granting credit for gambling, the Inquiry submits a number of proposals for enhancing gambling responsibility •gambling companies must register and analyse each player's gamb- ling behaviour, •gambling companies are to be required to offer players the oppor- tunity to set limits for their gambling in terms of game time and amount, •gambling companies may not offer games to a player who does not have a satisfactory player profile with the game provider, •gambling companies that assess a player's gambling to be risky, e.g. by the player having exceeded their own set limits, are to actively alert the player to this and give them opportunity to choose whether they want to continue playing, •gambling companies are to have information regarding what help is available and how to contact this help, •gambling companies are to ensure that game participants can exclude themselves from gambling until further notice or for a certain period. It shall only be possible to lift exclusion until further notice after 12 months, •online gambling companies (i.e. those offering quick games such as online casino games, online bingo and games on computer- simulated ) are to provide an opportunity for immediate exclusion – a panic button – easily visible on their websites. This exclusion is to be valid for 24 hours. The Inquiry proposes that create and maintain a register of players who temporarily or permanently want to exclude themselves from gambling with all gambling companies. Players can choose to be entered in the register on the website. Players are to give their explicit consent to being registered. The opportunity for exclusion applies to all games requiring players to be registered. The data in the register shall be subject to secrecy. All gambling companies receive continuous updates on the people in the register, which means that those registered can neither log in nor create a new registration for gambling. This also makes it possible to prevent advertisements being sent to the deregistered players. The Inquiry proposes that the Gambling Act contain basic pro- visions on marketing. Moderation is to be observed in the marketing of gambling to consumers. The assessment of whether marketing is moderate is to particularly observe that the marketing 1.in a correct and balanced presents the chances of winning so as not to create the impression that the chances of winning are greater than they actually are, 2.does not convey the image that gambling is socially attractive, 3.does not specifically target children or young people under the age of 18, 4.does not take place by using well-known people whereby it is suggested that their participation in gambling contributes to their social success, 5.does not convey the impression that participation in gambling is a solution to financial problems or can improve the player's social standing, and 6.does not convey the image that an offer of gambling is free of charge, free or the like, if this is not the case. Marketing that contravenes the requirement of moderation is, in the application of Sections 5, 23 and 26 of the Marketing Act, to be considered unfair to consumers. A ban on gambling advertising from companies that do not have a licence under the Gambling Act when this is required will be introduced in the Radio and Television Act (2010:696) with regard to television broadcasts, searchable teletext, on-demand television and radio broadcasts. Furthermore, a provision will be introduced in the Radio and Television Act entailing that a company, whose prin- cipal activity is to arrange and provide gambling and which does not have a licence under the Gambling Act when this is required, may not sponsor a programme in a television broadcast, searchable teletext, on-demand television or radio broadcast. The provision in the Radio and Television Act on the ban against product placement is to be expanded to also apply to gambling pro- ducts from a company that does not have a licence under the Gamb- ling Act when this is required. Marketing may not directly target gambling who have excluded themselves at their own request or have been excluded by the gambling company. Marketing may only directly target gambling who have terminated their gambling account if the gamb- ling customer has actively approved this in connection with termi- nation. A gambling company that offers players a bonus for participating in gambling are at the same time to clearly and explicitly inform players of whether conditions and rules apply to the bonus. Where players avail themselves of the offer, all conditions and rules are to be easily accessible. The payment of a bonus is to be made as soon as possible after the condition has been met. A bonus to an individual player may not be dependent on con- ditions other than those which are offered under the same circum- stances to other players playing the same game. A player is to have at least 60 days in which to meet any con- ditions that have been attached to the payment of a bonus.