Is It Safe to Play at Unlicensed Online Casinos?

Posted on Sep 16, 2020


Though regulators would prefer casino plyers to choose licensed casinos only, this is far from reality. The truth is players search ‘spillesider uden rofus’ in Denmark or ‘casino utan spelpaus’ in Sweden and find no-license alternatives: policing what is available on the internet is easier said than done. So, they look own begrudgingly as unlicensed internet casinos thrive alongside those operating legally in Sweden and Denmark.

Part of it is driven by curiosity on the side of players who find these international platforms better than their local counterparts. It’s true the strongest attraction is to what is forbidden. With this information, these illegal online casinos make themselves irresistible attracting more Swedish and Danish punters to sign up. They have some of the best bonuses imaginable together with other enticing rewards. This makes it almost impossible for legally operating platforms to compete with them.

The level of anonymity they offer is unmatched anywhere else. Since they require little to no verification, you can gamble without worrying about anyone finding out. This leads to too many addicted gamblers remaining hooked which is one of the biggest disadvantages of such websites. You remain in the shadows and don’t have to produce any identification ever.

In Sweden, it’s mandatory for licensed casinos to have a Spelpaus Self-Exclusion registry that punters can use.in case you don’t want to gamble anymore or ever receive gambling marketing information, you simply sign up. The casinos have to obey your wishes and keep you out of their contact list. This rule doesn’t apply to unlicensed ones that are under no obligation to obey such wishes.

Most of these are international casinos that are licensed by the Malta Gambling Authority. They are reliable and safe for punters to use hence their ability to function in these countries. What they lack is local licenses permitting them to operate within Sweden and Denmark.

Licensed Vs. Unlicensed Online Casinos in Sweden and Denmark

Licensed Vs. Unlicensed

There has been uproar in Sweden and Denmark in recent years about unlicensed online casinos that continue to thrive in the country. Many of the local casinos see them as unfair competitors who flaunt the rules but still benefit. Examples of such casinos that are well known include Lord of the Spins, Ridika, Bronze casino, and Spin Up Casino.

Even with continuous efforts by the SGA and DGA to tackle such casinos, they keep growing in popularity in the country. Many Swedish and Danish punters flock to their platforms for they have better features and rewards for their users.

  1. Transacting Limits

In these countries, there are very strict transacting limits that every licensed casino must adhere to. Flaunting this rule could entice a hefty fine or even having the license revoked. The limits set for banking are quite low which punters find as a hurdle when they want higher limits. This is when they turn to unlicensed entities that have no limitations in this area. There are no limits to how much you can deposit which is not the case for licensed casinos.

  1. Spelpaus

Offshore casinos are not bound by law to adhere to the self-exclusion clause that is available in Spelpaus. Even though it’s a very important initiative by the Swedish Gambling Authority, unlicensed casinos don’t have to adhere to it. To get a license in Sweden today, an operator must agree to create a self-registry for those who don’t want to gamble to sign up.

  1. Foreign Licensing

Both the SGA and DGA are funded by the fees gambling operators pay to obtain the license. This fee is what is used to run operations within Sweden. Since unlicensed operators don’t acquire such licenses, they don’t have to pay any fees. They hold international ones like from the Malta Gambling Authority (MGA) that benefits from their fees.

  1. Anonymous Users

You don’t have to verify your identity as a member of an unlicensed casino. The same can’t apply when using a local casino. When the time comes to withdraw your winnings, you need to prove your identity by uploading your ID. With an international account, you simply request a payout and the money is processed with few complications.

  1. Taxation

Licensed online casinos in Sweden and Denmark must pay taxes to the local government. This eats away at their gross revenue limiting their productivity. With unlicensed one, they pay no taxes to the respective governments and retain the majority of their gross revenue. This is part of the reason many local casinos detest the unlicensed ones in these countries for unfair competitive practices.

Combating Unlicensed Online Casinos

Both the SGA and DGA keep strategizing and enforcing measures to remove as many unlicensed operators from their jurisdiction. Some of these measures have made it easier for licensed operators to operate in these countries. The relief from unfair competition helps their operations thrive. Measures taken vary and continuous effort is needed.

  1. Blocked Payment Methods

The local authorities have managed to block payment methods that are popular with their citizens from these unlicensed online casinos. It’s not easy for such casinos to use Trustly, Swish, and Paypal to transact. This limits the payment methods available to them that punters can use. Still, it’s not easy for the SGA and DGA to restrict access to foreign payment methods.

  1. Blocking DNS

This works to an extent. If the player knows their way around computers then they can easily bypass the blocking. This gives them access to unlicensed websites.

  1. Mass Sensitization

One way to better inform people of the perils of gambling on an unlicensed platform is through mass sensitization. The authorities take it upon themselves to educate the masses and provide them with legal alternatives that are safer.

Conclusion

Though popular among punters, unlicensed casinos are not the best option to use. It’s better to use the licensed ones that are safer and reliable. Still, this might be a moot point since an online casino may lack a local license but still have an international one like the MGA or Curacao ones. The fact remains it’s in the best interest of the local licensed casinos for those without a license to be banned from operating within Denmark and Sweden.