Swedish Regulatory Body Bans Autoplay and Reverse Withdrawals

It has been reported that Spelinskeptionen, the Swedish gambling regulatory body, is set to end autoplay function in online casino games and put a stop to reverse withdrawals. The rules were published by the gambling authoritiy together with other regulations that are designed to enhance the responsible gambling regulations in the country.

The End of Autoplay and Reverse Withdrawals in Sweden

One of the rules that stands out the most is the abolishment of autoplay function for online slot machines. Autoplay function is a popular feature on slots that allows the player to set a definite or indefinite number of automatic spins in motion. However, based on the latest publication from the Swedish regulatory body, the functionality must be disabled on slots at Sweden-facing casinos.

Sweden is not the first jurisdiction to take a stance against automatic spins on casino slot machines. The United Kingdom Gambling Commission has also forbidden this feature on casino games in Great Britain and the same rules have been applied to online casinos in Ontario.

In addition to the ban on the autoplay feature, the Spelinskeptionen has also prohibited reverse withdrawals. Reverse withdrawals are a function that allows players to cancel a withdrawal before the funds have been sent to their bank account.

That means if a player were to withdraw from their casino account, there would be a short window in which the player could reverse their decision and cancel the transaction. With the new regulations in place, once the player taps the withdraw button, there is no way to go back on this, as the transaction must be completed first.

The Spelinskeptionen is not expecting players or operators to be pleased about the new regulations. Thus, to ensure that players are aware of the updated rules, they have asked online casino operators to inform players of the changes before they are operational.

What Other Changes Are Happening in Sweden?

In addition to the abolishment of autoplay and reverse withdrawals, the Spelinskeptionen has also updated their standards for online casinos to become more aware of responsible gambling obligations.

One of the rules states that operators must not give players any suggestions for their deposit limits, loss limits or time limits. Players that are logged in but do not touch their screen or move their mouse for two minutes are not considered “active”. Players that are not active will either be logged out or will receive a pop-up message asking if they want to remain logged in.

Furthermore, the Swedish regulatory body has also called for casinos to make it easier for players to communicate with them. The updated regulations also require all Swedish operators to display the logo of Spelpaus, a self-exclusion scheme.

The last major update for Swedish gambling rules is for retail slots to provide players with information about their annual losses upon signing into their account. In doing so, the player will see how much they have lost so far annually and be asked to confirm if they still want to play with the figures on their screen.

Stricter Gambling Rules after Swedish Democrat Party Wins Election

The Spelinskeptionen rules have been introduced just days after the Swedish Moderate Party won the elections with support from the Sweden Democrats. The new regulations that have been introduced are in support of gambling responsibly in Sweden.

However, Gustaf Hoffstedt, a former member of the Moderate Party and secretary general of Swedish trade association Branscheforenigen för Onlinespel has said he expects other changes as well. The secretary general believes that the country will change their regulations on bonuses in Sweden to become more relaxed than the current rules.

Sweden to follow UK Gambling Commission Regulations?

The Spelinskeptionen change of regulations suggests that perhaps Sweden is on its way to becoming more like the United Kingdom. In the UK, the Gambling Commission is the regulatory body that has altered the online casino industry to become far more aware of responsible gambling.

In July 2020, the Gambling Commission began a surge of regulatory changes with the purpose of ‘making online games safer by design’. The rules that followed included the abolishment of the autoplay function as players could lose track of how much they have played.

In addition, the wave of new rules also ensured that each slot spin lasts at least 2.5 seconds, so that players do not burn through their bankroll as quickly. The Commission removed all quickspin functions on slot machines and also asked operators to remove deceptive sounds and animations that made players believe they had won even if they had not. Previously, certain slot machines would give players the illusion that they had won with imagery even if their returns were equal to or below their initial stake.

In October 2021, the UK Gambling Commission also banned reverse withdrawals. The reason provided by the Commission behind the regulation is that: “Evidence shows that reverse withdrawals present a risk to players because of the temptation to continue gambling.”

The Spelinskeptionen appears to be on their way to replicate many rules set out by the United Kingdom Gambling Commission. With the introduction of reverse withdrawals being irreversible and the abolishment of the autoplay function, the Swedish gambling body is employing the same rules set by the Gambling Commission.

In 2019, the £2 fixed odds betting limit was introduced. It states that players can only place wagers of up to £2 on fixed odds betting terminals. This was introduced so that players cannot wager high stakes on casino games such as slots, roulette, blackjack, baccarat and poker.

This was one of the harshest rules set by the Commission. Whilst it is still not likely that the Spelinskeptionen will introduce the same rule, could this potentially be something that the Swedish gambling body mirror in the future?

Will Germany Also Follow Suit?

The Spelinskeptionen is not the only regulatory body that is tightening up their rules for players. Earlier this year, Germany announced a €1,000 monthly limit on deposits will be imposed for sportsbook accounts. However, in certain exceptional cases, it is possible for the deposit limit to expand to up to €30,000.

The new rules set out from the German regulatory body are set to go live in 2023. However, before 2023, sports betting operators are not allowed to expand the deposit limit to more than €1,000 per month as the gaming supervision system, LUGAS, is experiencing technical issues. This may also be due to the transfer to the new gaming regulatory in Germany, the GGL.

Joerg Hofmann, the senior partner at Melchers Law Firm, stated the following:

“According to information which has yet to be officially confirmed, the Regional Council in Darmstadt will only focus on processing the pending applications and will not make any decisions about deposit limits. If this is true it means that the GGL would need to take over, but the GGL can only make a decision after 1 January 2023,”

“This would be a disastrous situation for the industry, as operators will most likely face a delay and an extended period during which they will only be able to accept €1,000 deposits per month,” 

“Currently, the LUGAS system is not able to check deposits beyond €1,000. That’s for technical reasons. So, there are still some issues that need to get fixed before the beginning of next year,”

It is still unsure whether the deposit limit for €1,000 in Germany will be introduced to the casino vertical or not. As things stand, the limit will only be for the sportsbook product and not for online slots or poker.

Spelinskeptionen on the Move

Over the past few weeks, the Spelinskeptionen has been productive with the introduction of the new rules and more. The Swedish regulatory body has banned Casineia, a casino site powered by operator Ease Gaming NV from the Swedish market.

Spelinskeptionen state that the online casino from Ease Gaming does not have a Swedish license, thus making them ineligible to operate in the country. According to a report, Casineia operate using a Curaçao license but were still able to be found by Swedish players, moreover, their content was aimed for Swedish consumers. The ban to Ease Gaming means that their other casino sites - Slothive, Gamblii and Jinxcasino - will also not be available in the country.

A spokesperson from the Spelinskeptionen said:

“The Gambling Act applies to games provided in Sweden, with specifically stated exceptions. It is a prohibitive legislation that is based on the principle that everyone who acts on the Swedish gaming market must have a licence. It is therefore not permitted to provide games without a licence when one is required.

“The purpose of the new regulation is for gambling to be channelled to offers from responsible, reliable and controllable players. The regulation is based on the fact that everyone who acts on the Swedish gambling market must have a Swedish gambling licence and that other actors without a licence must be shut out.

“Spelinspektionen considers that, with regard to consumer protection and to guarantee gaming safety, it is important that the decision is complied with immediately.”

In other news, the Spelinskeptionen has also announced that B2B supplier license application would launch from the 1st of March 2023. This move is a bold statement, as the bill has not even received approval from the parliament yet.

The Swedish regulatory body are confident that the bill will be passed. If it succeeds, only suppliers that have a B2B license will be able to operate in the Swedish market from July 1st, 2023.

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