Foreign Casinos without a Swedish License

Welcome to our complete guide to Foreign Casinos, your guide to casinos without a Swedish license. If you are an experienced casino player and have been playing for many years, you probably know that most casinos have been based outside Sweden ever since they started appearing online in the late 1990s. Malta, Curaçao, Gibraltar, and others have long been common locations for foreign online casinos.

But in 2019, something changed. Sweden regulated its casino market, and suddenly all casinos were welcome in Sweden — on one condition: they had to obtain a Swedish gambling license. However, many casinos chose to remain abroad, some combining this with a Swedish office while keeping part of their operations as a foreign casino.

The Swedish gambling license came with quite a few restrictions compared to how things had worked previously. Still, many players accepted the new conditions introduced by the license. The biggest change was how casino bonuses worked. Instead of being able to take advantage of several different types of bonuses, players were now limited to one bonus per casino and license. The COVID-19 pandemic also had an impact.

As a result of this legislation, the demand for foreign casinos without a Swedish license increased. The fact is that many casino operators chose not to apply for a Swedish gambling license. As long as they comply with Swedish laws and regulations, they may still accept Swedish players, even if they are foreign casinos without a Swedish license and are based abroad.

Some foreign casinos have been prohibited by the Swedish Gambling Authority from accepting players from Sweden. The reason is that they violated Swedish gambling laws and regulations.

Is it legal to play at foreign casinos?

Now it’s time to look at the legal aspect of playing at a foreign casino without a license as a Swedish resident. But before we go into that, we want to define what “Swedish” means in this context. Where you were born or what passport you hold is completely irrelevant — what matters is where you live. If you are registered as living in Sweden, you are considered Swedish for this part of the guide. If you have a Swedish passport but live abroad, you can simply skip this section of our guide.

So what applies to Swedes — or rather, people registered at a Swedish address? The law is clear, but complex. A casino may accept Swedish players without holding a Swedish license, provided the casino does not target Swedish players. For example, a foreign casino may target the Indian market but still allow players residing in Sweden to join.

Exactly how a casino targets its primary market is less important. What matters most for compliance with Swedish law is that the casino must not target Swedish players. The current definition of targeting Swedish players includes:

• The casino website must not be available in Swedish
• The casino must not offer Swedish kronor as a deposit currency
• The casino must not provide Swedish-speaking customer support
• The casino must not market itself toward Sweden or Swedish players

At present, it is not illegal for you as a player to play at an unlicensed casino. The party that could potentially be breaking Swedish law is the casino operator offering gambling services to Swedish residents. Nevertheless, we have chosen to write this guide from the perspective that neither you as a player nor the foreign casino should need to break the law. We simply believe that is the best approach.

Are foreign casinos safe?

As long as gambling has existed, security has been crucial. If you cannot trust the casino you play at, how can you know whether you will actually receive your winnings? If you choose to play at a foreign casino, we cannot stress enough how important it is to choose one regulated by a recognized gambling authority. Simply put, there are two types of licenses: local licenses, such as the Swedish license, and global licenses, such as Malta and Curaçao.

Some so-called local licenses also allow operators to accept players from countries outside their own region. If you are looking for a foreign casino, we recommend casinos licensed in Malta or Curaçao. These two regulators have been around for a long time and are both considered reputable.

A casino that does not care about laws and regulations may also not care about paying out winnings to players. That is why it is important to choose a trustworthy operator with a good reputation and an established license.

Licenses and jurisdictions

Compared to 10 years ago, there are now many different gambling licenses available. However, there is a significant difference between the licenses available today and those that have existed since the beginning. Long-established licenses, such as Malta and Curaçao, are more general licenses. These are the licenses many foreign casinos have used for decades.

Many of the newer gambling licenses, such as the Swedish one, are primarily used to accept players from Sweden. When choosing a foreign casino, the following options are still the most popular:

1. Malta (MGA) – Tax-free winnings, provided the criteria for not targeting Swedish players are met. The Malta Gaming Authority is known for strict regulation and high standards for operators.
2. Estonia – Tax-free winnings, provided the criteria for not targeting Swedish players are met. Estonian-licensed casinos have gained increased trust in recent years.
3. Curaçao – 30% gambling tax for Swedish players. Curaçao is a popular licensing authority but offers somewhat less comprehensive consumer protection compared to EU licenses.
4. Anjouan – 30% gambling tax for Swedish players. A lesser-known licensing authority.

When choosing a casino based on its license, it is important to understand which jurisdiction provides the best conditions based on your situation and needs.

Do I need to pay tax on winnings from foreign casinos?

Whether you need to pay tax on winnings from a foreign casino depends on several factors. The best way to get an accurate answer is to check the Swedish Tax Agency’s website.

The general rule is that all gambling winnings from casinos outside the Swedish gambling regulation system are taxed at 30% if the amount exceeds SEK 100. However, there are exceptions. If the casino is licensed outside the EU, winnings are taxed at 30%. If the casino targets the Swedish market, the 30% gambling tax applies regardless of where the casino is based or licensed. However, if the casino does not target the Swedish market and holds an EU license, winnings are tax-free!

Deposit methods

An important aspect to consider when choosing a foreign casino is which deposit methods are available. Since these casinos cannot offer Swedish kronor or directly target the Swedish market, the selection of payment options may be more limited compared to Swedish-licensed casinos.

Common payment methods at foreign casinos include:

• Instant Bank (Trustly, Zimpler, Brite, Volt)
• International credit cards (Visa/Mastercard)
• E-wallets (Skrill, Neteller, ecoPayz)
• Cryptocurrencies (Bitcoin, Ethereum, Litecoin)
• Bank transfers (SEPA within the EU)

It is worth noting that some Swedish banks may block transactions to unlicensed gambling operators, so it can be useful to have several payment methods available. In addition, currency exchange fees may apply since deposits need to be made in currencies other than SEK.

BankID and verification

With the introduction of the new Swedish gambling license, casinos are required to use BankID for registration and login. At the same time, your personal details are checked against the Spelpaus central database, a self-exclusion service for people who want to limit their gambling.

Foreign casinos without a Swedish license are not required to use BankID, regardless of whether they support it or not. This comes with both advantages and disadvantages:

• Advantages without BankID: Faster registration and easier access to gambling. Perfect for players who do not have BankID or prefer other verification methods.
• Disadvantages without BankID: The verification process can take longer when making your first withdrawal, as you often need to manually submit identification documents.

However, we strongly recommend that anyone who has self-excluded through Spelpaus completely refrain from gambling, even at foreign casinos, since Spelpaus will not work on these sites.

Advantages of playing at foreign casinos

We have now gone through the most important legal aspects regarding casinos without a Swedish license. In summary, it is absolutely possible to play at a foreign casino, as long as it meets the requirements above. And if the casino holds a license within the EU, your winnings may even be tax-free!

But aside from the fact that you can and are allowed to play, is there any reason to choose a foreign casino instead of one based or licensed in Sweden? Once again, the short answer is: it depends!

Swedish gambling regulations, for example, require players to use BankID to log in. While most Swedes today have BankID, there are of course still some who do not. At foreign casinos, BankID is rarely a requirement.

Another advantage is bonus offers. A casino with a Swedish license may only offer one bonus per license. This restriction does not apply to foreign casinos, which means you may gain access to more and sometimes more generous bonuses.

Disadvantages of playing at foreign casinos

There are definitely downsides to playing at a casino based outside Sweden. How significant they are, or whether they outweigh the potential benefits, depends on many different factors.

The biggest disadvantages of foreign casinos are:

• Weaker player protection - Although self-exclusion features may exist, they are generally not as sophisticated as those offered by Swedish-licensed casinos.
• Language barriers - If the casino stays within Swedish legal limits, you will miss out on Swedish customer support and a Swedish-language website.
• Currency issues - You cannot use Swedish kronor for deposits, which may result in extra currency exchange fees.
• Limited payment options - The range of payment solutions may be more limited than on Swedish-licensed sites.
• Tax considerations - In some cases, your winnings may be taxable, which requires additional administration.

Summary

Playing at foreign casinos without a Swedish license can be an option for those who, for some reason, do not want to or cannot play at Swedish-licensed sites. It is important to choose a casino with a reliable license, preferably from an EU jurisdiction such as Malta or Estonia if you want tax-free winnings. Our position, however, is that you should always strive to play at a Swedish-licensed casino.

If you still choose a foreign casino, it is important to consider:

• That the casino has a reliable license
• The tax implications depending on the license
• That you cannot use BankID or Spelpaus
• Which deposit methods are available

We hope this guide has been very helpful when it comes to information about foreign casinos without a Swedish license. Always remember to gamble responsibly and be aware of the risks associated with gambling, regardless of where you choose to play.