Sweden Regulates Compliant Electronic ID Methods

Sweden Regulates Compliant Electronic ID Methods

Sweden’s long expected re-regulating of the gambling market is in progress, and the latest requirements regarding electronic identification methods have brought a lot of concerns for the operators within the country. The Gambling Act isn’t quite specific about the use of electronic ID systems, although it does refer to BankID as a legit example.

Due to a possible infringement of competition, the authority cannot legally propose a certain payment service as a requirement, nor can it identify which methods are compliant with the new regulation. Instead, it can only state compulsory prerequisites that have to be meet. A throwback to the chapter that addresses ID methods says the following:

  1.  1.“The license holder shall verify the identity of the player in a satisfactory manner using a reliable electronic identification or equivalent.” (Chapter 12, Section 2, Para 2, Gambling Act (2018:1138))
  2.  2.“The gambling system shall have a function for registering a player. Verification of player’s access shall be done by personal and unique access code each time he/she login to the gambling system.” (Section 1, LIFS 2018:8)
  3.  3.“When depositing funds into a gambling account, the license holder must verify that the owner of the stated bank card/bank account or other payment method is the same as the owner of the gambling account.” (Section 8, LIFS 2018:8)

In other words, the operator can select a preferred electronic identification solution as long as it complies with the requirements set out in the Gambling Act.

No Mandatory Systems

Players who register with online casinos in Sweden, will have to be verified in a satisfactory manner. This procedure will require a name, address and a personal ID number. However, the license holder will have to provide a reliable electronic identification system, such as BankID.

The concept of this system was developed by a group of banks and it is fully compliant with the regulation. Still, a lot of online operators in the country remain baffled since no other methods as a substitute are mentioned and the question whether Telia, Freja, AB Svenska Pass, Identiway or Zimpler ID are allowed to be used for verification remains open.

Establishing Players’ Identity

The new framework is also intensifying the country’s security measures, since players’ identity shall now be easily determined… Likewise, the operators will be able to specify whether a customer is joining from the same region, allowing further identity checks upon registering.

Finally, the goal is to keep Sweden’s secondary legislation as neutral as possible to avoid possible adjustments of the Law due to the future technical developments. According to the guidelines, verification can be done using BankID or similar services, meaning that the operators can rely on the requirements set out in the law.

Source:

“The use of electronic identification methods on a re-regulated Swedish gambling market”, Mattias Kelmeling, linkedin.com, September 27th, 2018.

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