Are you interested in playing at an unlicensed casino? Not many gamblers are familiar with the safety and tax requirements of these gambling sites. Contrary to the general opinion, these casinos are safe for players to gamble at due to the licenses they have obtained from different countries, not Sweden.
When choosing an unlicensed casino, gamblers should be absolutely attentive when inspecting the site for any signs related to Sweden. Otherwise, you’ll be obliged to pay profit taxes you so desperately wished to avoid.
This is everything you need to know about online casinos without a license.
What is a casino without a Swedish license?
Casinos lacking a Swedish gaming license aren’t illegal as most players think. These gambling providers have simply decided not to apply for a gaming license issued by the Swedish Gaming Inspectorate but obtain one from another country like Malta, the UK, and Curacao.
The gaming licenses issued by these countries exist much longer when compared to the permits provided by the Swedish authorities. The UK license is infamous for being rather rigorous in the requirements imposed on gambling providers. In contrast, Malta and Curacao aren’t as strict in their requirements for applicants. As long as gambling sites are licensed in one of these countries, they’re considered safe for players to use. Read here about the history of the island country of Curacao.
Is it safe to play at such sites?
Many gamblers are skeptical about playing at unlicensed casinos because of the potential legal problems they might experience. However, there’s no reason to worry about violating the law, as Swedish players aren’t legally banned from using unlicensed gambling sites. There are no legal restrictions regarding the use of online casinos having no Swedish license.
Nevertheless, it’s common for some unlicensed sites to block players from Sweden in the hope of preventing legal issues. These sites impede Swedish players from gambling by blocking their IPs. Conversely, gambling providers more familiar with the Swedish law allow Swedish players to use their sites without any restrictions.
What does the Swedish Gaming act entail?
Not long ago, in 2019, the Swedish government has introduced a Gaming Act, aimed at all gambling providers offering their services to players from Sweden. This act obliges all online casinos targeting Swedish players to obtain a license from the SGA (Swedish Gaming Authority) in order to operate legally.
Nevertheless, the main reason why the government of Sweden has decided to introduce such a license is to prevent tax revenue loss. When Swedes play at international casinos, they pay no tax in Sweden, which doesn’t seem to suit the government.
Some Swedish banks even prevent Swedes from making deposits at unlicensed casinos in order to discourage them from playing at foreign gambling sites. Anyhow, the use of cryptocurrencies and e-wallets for making down payments enables players to gamble at any casino they want. Check out this link, https://economictimes.indiatimes.com/definition/e-wallets, for a definition of an e-wallet.
Moreover, many online casinos aren’t interested in obtaining a Swedish gaming license due to the large number of requirements they need to meet to become licensed. For instance, licensed casinos are supposed to grant no more than a single bonus to players, as well as prohibit credit play. Also, gambling providers are obliged to keep a record of the gaming history of all players.
As far as fund withdrawal is concerned, players have to provide a Bank ID in order to withdraw their winnings. Additionally, operators are required to find a gambling organization to take the role of their partner. Deposits and losses are supposed to be limited, allowing players to impose their own limitations. Finally, the information posted on the site has to be translated into Swedish, which means the site should have an English and Swedish version.
Given the above-mentioned requirements, it’s no surprise operators in Sweden are discouraged from becoming licensed. They need to make large investments in order to make the necessary changes to the site. Consequently, most operators decide to get a permit from another country and continue accepting Swedish players willing to gamble at unlicensed online sites.
Are players required to pay taxes?
Paying taxes is a major concern for gamblers, which is why they need to get familiar with the tax requirements of unlicensed casinos. There are numerous unlicensed casinos, such as Casino Orbit – casinonutansvensklicens, differing in their tax requirements. Consequently, there is no general rule for the tax players are expected to pay on their winnings. Different countries impose different tax requirements, which a gambler has to know before setting up an account.
The only tax-free alternative for gamblers is playing at a gambling site, equipped with a license within the EEA (European Economic Area). As long as the gambling site is not focused on Swedish players, you’ll be exempted from paying tax. Nevertheless, one has to be extra careful when inspecting the site in search of signs indicating the operator targets players from Sweden.
For instance, the gambling site isn’t supposed to have a Swedish version or display the logo of the Swedish Gaming Inspectorate. Additionally, the promotions and bonuses shouldn’t be expressed in SEK, the currency of Sweden. Websites featuring at least one of these signs make players taxable by imposing a thirty percent of profit tax.
In addition, casinos licensed in countries outside the EEA such as Curacao and Cyprus require players to pay thirty percent tax on sums higher than SEK 100. These unlicensed sites should be avoided by gamblers in order to be tax-free.
It’s paramount for gamblers to be careful when analyzing the gambling sites licensed in countries like Malta and the UK. Although these countries are part of the EEA, you need to check whether they target users from Sweden. Never make an account before inspecting the website.
The bottom line
Make sure you get familiar with the concept of unlicensed casinos before playing at one.
These are safe and generous to players!