Browse topics

• Governing law

  Name	Law or Code?
  The Swedish Gambling Act (Sw. Spellag (2018:1138))	Law
  The Swedish Marketing Act (Sw. Marknadsföringslag (2008:486))	Law
  The Consolidated ICC Code of Advertising and Marketing Communication Practice (Sw. ICC:s regler för Reklam och Marknadskommunikation)	Code
  The General Data Protection Regulation (EU) 2016/679 (Sw. Dataskyddsförordningen)	Law

  Last modified 14 Jan 2019

• Extra-territoriality

  The rules of the Swedish Gambling Act apply in relation to prize promotions offered in Sweden or targeting the Swedish market. In contrast, prize promotions not offered in Sweden or actively targeting the Swedish market will fall outside the scope of the Swedish Gambling Act.

  Whether the Swedish Marketing Act will be applicable to marketing targeting Swedish consumers, but operated from abroad, will depend on whether the prize promotion is advertised from an EU/EEA member state or from another country. If the website/services are operated from an EU/EEA member state, the Swedish Marketing Act will not apply and the national regulator will not take action against such promotions. Instead, the rules of marketing in such member states will apply to the marketing. In contrast, if the website/services are operated from another country, for example the United States of America, and targets Swedish consumers, the rules of the Swedish marketing law will apply.

  Last modified 14 Jan 2019

• Skills competitions

  Yes. However, please note that a Swedish gambling license may be required if the selection of the winner is not based solely on the participants' individual skills, if participation requires payment of a wager, stake or similar.

  Last modified 14 Jan 2019

• Prize draws

  Yes. However, please note that a Swedish gambling license is required if participation requires payment of a wager, stake or similar.

  Last modified 14 Jan 2019

• Selection of winners

  Promotions must be performed in accordance with the conditions originally set forth by the promoter. Also, the same conditions must apply to all participants and the assessment of the contributions must be impartial and reliable. It is not permissible to select the winner in an arbitrary manner.

  Please note that it is not sufficient to only contact the winner(s) of a competition. Instead, the results should be made as publicly available as the competition itself.

  Last modified 14 Jan 2019

• Judges

  The criteria and mechanism for judging entries must be made known before, or at the time of, entry. Furthermore, the composition of the judging panel should be made known before, or at the time of, entry.

  Last modified 14 Jan 2019

• Prizes

  No. However, extensive information concerning the prizes, namely the number, value and type of prize, must be provided before, or at the time of, entry. Also, the promoter is required to provide information regarding whether or not the prize(s) may be exchanged for a cash substitute equal to its value and whether or not the winner may be liable to pay taxes.

  Last modified 14 Jan 2019

• Registration requirements and fees

  Registration Requirements

  For chance-based prize promotions, where participation requires payment of a wager, stake or similar, a Swedish gambling license is required.

  No registration requirements apply to skill-based prize promotions or chance-based prize promotions which do not require payment of a wager, stake or similar.

  Fees/Taxes payable

  The winners in a skill-based promotional competition may be liable to pay income tax and the promoter may be liable to pay social security contributions on the prizes.

  For chance-based prize promotions, where participation requires payment of a wager, stake or similar, the promoter may be liable to pay Swedish gambling tax.

  Last modified 14 Jan 2019

• Other local requirements

  The promotion of prize promotions must comply with general marketing law requirements, such as being legal, decent, honest and truthful.

  Prize promotions must be performed in accordance with the conditions originally set forth by the promoter. Also, the same conditions must apply to all participants and the assessment of the contributions must be impartial and reliable. It is not permissible to select the winner in an arbitrary manner.

  Furthermore, it is important to provide sufficient information when organizing a competition. The following list is a compilation of the information that should be provided when organizing a promotional competition:

  • The promoters name, address and contact details.
    
    
  • All the terms and conditions associated with the promotion, including time limits and other restrictions or limitations, should be indicated in a clear and exhaustive manner.
    
    
  • A detailed and unambiguous description of the assignment, and how the winner is to be selected. The participant must be able to assess the nature and the objective of the competition.
    
    
  • All costs, fees and confirmation of whether or not there is a purchase requirement associated with the participation.
    
    
  • A clear and comprehensive description of the assessment and the decisive factors when choosing a winner. Also, if applicable, the composition of the judging panel.
    
    
  • Extensive information concerning the prizes, namely the number, value and sort. Also, one is required to provide information regarding whether or not the prizes may be exchanged for a cash substitute equal to its value.
    
    
  • When and how the results will be publicized and the winners will be contacted. Please note that it is not sufficient to only contact the winner(s) of a competition. Instead, the results should be made as publicly available as the competition itself.
    
    
  • Whether or not the winner may be liable to pay any taxes.
    
    
  • If the winner or winning contributions will be used in any other context; information concerning such use must be provided.
    
    
  • Finally, if personal data will be processed, one must provide the registered person with information regarding the processing and the registered person's rights. It may also be necessary to obtain consent from the participants.

  Note: Where there are space limitations e.g. Twitter / banner ads, you must communicate as much information as possible and direct the entrant to where all significant terms are stated.

  Last modified 14 Jan 2019

• Timing

  No, although time should be allowed to deal with data protection issues (e.g. ensuring an appropriate privacy policy is in place).

  Last modified 14 Jan 2019

• Translations

  There is no express legal requirement to translate the terms and conditions. However, the promoter is liable for ensuring that the participants understand the terms and conditions. Given that is the case, the preferred approach in Sweden is to translate the terms and conditions into Swedish.

  Last modified 14 Jan 2019

• Penalties for non-compliance

  Operation or promotion of unlicensed gambling activities

  The operation or promotion of unlicensed gambling activities is punishable by fines or imprisonment of up to six years.

  The Swedish Gambling Authority may also issue orders and prohibitions under penalty of fines. Please note that there are no set limits for the fines, the Swedish Gambling Authority may determine an appropriate amount intended to have a deterrent effect.

  In relation to licensed gambling operators, the Swedish Gambling Authority may also issue a fine between SEK 5,000 (approx. US$520) and a maximum of 10 % of the license holder's turnover in the preceding financial year.

  Violations of the Swedish Marketing Act

  Violations of the Swedish Marketing Act may lead to the following sanctions:

  • Orders or prohibitions under penalty of fines. It is not uncommon that such sanctions amount to SEK 1,000,000 (approx. US$104,000) but there are no maximum fines.
    
    
  • Marketing Disturbance Fee of SEK 5,000 – SEK 5,000,000 (approx. US$520 – US$520,000), but no more than ten percent of the annual turnover. It should be noted that this sanction is rarely invoked; and
    
    
  • Damages to affected parties.

  Last modified 14 Jan 2019

• Restrictiveness of regulations

  The Swedish Gambling Act entered into force on 1 January 2019 and is less restrictive than the previous regime.  However, GDPR has introduced various obligations around processing personal data which have significant application to prize promotions (eg. use of submissions including personal data, winner publicity, etc.).

  Last modified 14 Jan 2019

• Regularity of sanctions

  The Swedish Gambling Act entered into force the on 1 January 2019, and so far, no enforcement actions have been taken. It remains to be seen how actively the Swedish regulator will enforce the rules in relation to prize promotions.

  The Swedish Consumer Agency regularly issues orders and injunctions under penalty of fines to prevent violations of the Swedish Marketing Act.

  Last modified 14 Jan 2019

• Key contacts
  

  Emil Ödling

  Partner Advokatfirma DLA Piper Sweden KB [email protected] T +46 8701 78 28 View bio

  

  Anna Jussil Broms

  Senior Associate Advokatfirma DLA Piper Sweden KB [email protected] T +46 8701 78 76 View bio

  

  Christopher Büller

  Senior Associate Advokatfirma DLA Piper Sweden KB [email protected] T +46 8 701 78 36 View bio