The gaming industry in Sweden moves like a train and is growing every year. New game companies pop up out of the ground like mushrooms, and the turnover of game developers increased by 27 percent in 2019 and is valued at SEK 24.3 billion. Between 2019 and 2020, the growth of licensed gambling companies was insignificant, with a turnover of 24.7 billion SEK.
The gaming industry is currently one of the most important export markets and is challenging pulp exports, which amounted to 24.4 billion SEK in 2018. Over the past year, due to the increase in time spent at home and social isolation, the gaming company market has grown even more, and many new customer groups have entered into computer games and online gambling. When you couldn't meet in real life, games became a way to connect with loved ones.
Due to the pandemic, more time spent at home and social isolation as a result, many people have discovered gaming as a hobby, which has given a real boost to the Swedish gaming industry. Read about exciting technology solutions for growing gaming companies on this web page.
Boost for online casino
The online casino industry has also grown strongly in recent years. Technological development comes at a rocket speed and today's online casinos offer everything from gambling, slots, table games, live casinos and poker tournaments. The online casino industry accounts for the majority of the gambling industry's turnover, and the largest portion of that turnover is accounted for by a few players. According to the Health Authority, half of the income in the gambling industry comes from 3 percent of players. This means that people with gambling addiction are mainly involved in the turnover.
Important employer
For the Swedish economy, the gambling industry is an important player that employs many people. 2,500 people work for gaming companies based in Sweden and 10,000 people for companies based abroad. There are still thousands of people working in the game development segment, and the labor shortage is palpable. Many companies are forced to import labor from abroad in order to succeed in finding the skills they need. This needs to be revisited if Sweden is to maintain its position as a leading player in the European gambling market. More resources need to be invested in training game developers.
Unregulated gaming market
Even though it is a lucrative market, the gambling and casino industry has been something of a Wild West for many years, with foreign gambling companies operating in the Swedish gambling industry. These companies were based in Malta, for example, and were thus able to avoid complying with Swedish laws and regulations and avoid being taxed on their income. In addition, they avoided taking responsibility for their clients, which created uncertainty for the Swedish players.
Sweden in front of a new playing team
With the ability to attract customers through aggressive marketing methods and generous bonuses, the company has grown at a rapid pace with ease. In order to fix the unregulated gambling market, the Swedish government has decided to introduce a new gambling law that came into force on January 1, 2019. In short, this meant that gambling companies that wanted to operate in the Swedish gambling market had to hold onto a Swedish gambling license. At the time of writing, 100 gambling companies have obtained gambling licenses, meaning they are under the control of the Swedish Gambling Authority.
In addition, strict requirements are placed on marketing. You should not use aggressive marketing methods when you force yourself on customers, or use messages that give the impression that the chances of winning are higher than they really are. Companies are also prohibited from inviting customers to play games with any kind of bonuses or free deals, except in connection with registration, the so-called welcome bonuses. Under the new rules, companies operating in Sweden must also pay Swedish tax of 18 percent on income, even if the company is based abroad. This is expected to make a good hole in Sweden's treasury.
Customer protection is important
An important aspect of the new gambling law is customer safety. To obtain a gaming license, you must demonstrate that you take customer protection seriously and offer secure payment solutions such as bank transfers, Paypal, Revolut, Swish, Bitcoin, Trustly, or invoice. To protect customers from paying money to unlicensed gambling companies, the ability to block transactions between players and unlicensed companies has also been introduced.
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