The Swedish Gaming Authority Has Produced a Guide with Questions and Answers Regarding Licenses for Gaming Software

Strängnäs, Sweden (February 20, 2023) — The Swedish Gaming Authority has produced a guide with questions and answers regarding licenses for gaming software.

The actors who manufacture, provide, install and/or change game software used in the provision of online games according to ch. 7. and ch. 8 the gaming team must apply for permission.

Who needs a license for gaming software?

The actors who manufacture, provide, install and/or change game software used in the provision of online games according to ch. 7. and ch. 8 the gaming team must apply for permission.

What is gaming software?

The term gaming software refers to software that is designed to be used specifically for licensed games for money.

The following can be considered examples of software that should normally be covered by the term:

• streaming solutions for virtual gaming events (e.g. live casino),
• control program for such events,
• software for betting and matching bets,
• liquidity program,
• random number generators,
• programs with game data that show detailed results in games or that form the basis of bonus calculations, and
• software that accepts and records gambling transactions, determines results, or calculates and allocates winnings to the customer’s account.

These examples can be found in gaming products such as:

• computer-simulated automatic game (slots),
• streaming solutions etc. for online-based live casinos,
• online poker platforms, or
• sportsbooks for betting.

Software that is generally developed for related activities such as performance analysis, affiliates and customer management and administration does not require a license.

When is a license needed for gaming software?

A permit is needed if the activity falls under the concepts of manufacturing, providing, installing, or modifying game software for games. These forms of management require the company to have a gaming software license. There may be companies that carry out one or more of these activities.

Provision of gaming software

Permission for game software is required for the actor who has entered into a supply agreement regarding game software. This can, for example, be the same actor who manufactured the game software or an intermediary who distributes the game software.

Installation of game software

Often the installation is handled by the same company that also manufactures or provides the game software, but it cannot be ruled out that the later handling of the game software is done by another actor. In such cases, that actor must also have permission to install the game software.

Manufacturing and modification of game software

Anyone who manufactures game software also needs a permit. The reason for this is to minimize the risk of gaming software manufacturers using different intermediaries to supply both licensed and unlicensed gaming companies with gaming software.

Permission is needed for manufacturers whose gaming software is used by licensees in the Swedish gaming market. The activities of manufacturing and modification are similar as both activities involve the development of game software. Changing game software can mean a development or an adjustment of the game software’s function.

The production of game software can also be a process in which several parties may be involved, where these produce a part that together leads to the creation of the game software. A decisive factor for or who needs a permit in such a process depends on where the final control of the development of the product lies. An actor who, for example, manufactures gaming software on behalf of someone else, and where the client retains control over the design and content of the final product, does not necessarily need to apply for a separate permit. In a case where a company (company Y) buys time and/or expertise from a third party (the development company),

When determining where the control is located (and where a permit is therefore needed), e.g. the following are taken into account:

• Which company has control (control and influence) over the game software’s design and content during the manufacturing process?
• Which company owns the game software?

When a third party contributes only part of the software, e.g. the graphics, under the control of and with design specifications from company Y, this indicates that company Y is in control and is the operator that needs permission for gaming software, while the third party does not.

Further questions and answers can be found HERE.

SOURCE: Spelinspektionen (The Swedish Gaming Authority).