BOS-commissioned study flags tougher, more formal SGA supervision

A legal study commissioned by the Swedish Trade Association for Online Gambling (BOS) claims the Swedish Gambling Authority (SGA) applies a more formalistic supervisory approach and imposes harsher penalties than other Swedish government agencies with comparable responsibilities.

The report, produced by law firm Nordic Legal, compares the SGA’s supervisory activities and sanction decisions with other Swedish authorities. It focuses on three areas: anti-money laundering (AML) supervision, assessments of individuals in senior management positions, and sanction fee levels.

According to BOS’s summary of the findings, the SGA is “more formalistic” and “less risk-based” than other AML supervisors. The report also claims the SGA puts greater weight on the timely submission of documentation when assessing senior management, while other agencies primarily assess suitability for the role.

On sanctions, the study argues the SGA levies higher sanction fees when measured as a proportion of the maximum available penalty compared with other agencies.

“We believe that the licensed gambling market in Sweden would benefit if the Swedish Gambling Authority were to adopt working methods more closely aligned with those of other Swedish government agencies. This would lead to a more risk-based approach, which would strengthen efforts against money laundering and enhance other areas of supervision,” says Gustaf Hoffstedt, Secretary General of the Swedish Trade Association for Online Gambling.

“We hope that this report can serve as a basis and an inspiration for such an ambition — that the Swedish Gambling Authority might look to other Swedish government agencies in its approach to supervision and sanctions,” Hoffstedt concludes.