Sweden's Ministry of Finance Investigates Political Lottery Activities

The Ministry of Finance in Sweden (Finansdepartementet) has launched a probe into the rules governing party political lottery games. This follows public indignation over the transparency and sincerity of political funding.

According to the Ministry, the inquiry would concentrate on options for tightening political party lottery rules while strengthening consumer protections. The government will also consider whether to grant licenses to lottery operators for such activities.

In Sweden, political parties can fund their election campaigns and operations using public funds and income from commercial activities. The Swedish Gambling Authority restricts the sale of tickets on credit to authorized lottery operators except for lottery games that are for "public benefit purposes," which includes political parties.

Gunnar Larsson, a former director-general of the Swedish Consumer Agency and civic ombudsman, will oversee the investigation. The Ministry of Finance expects Larsson's team to deliver its conclusions by February 29, 2024.

The party political lotteries have come under criticism, especially regarding how this type of gambling supports Sweden's political parties. In addition, critics claim that political lotteries are immune to gambling taxes, credit bans, and bonus restrictions.

In the review, the government will re-examine laws that apply expressly to lottery games that benefit political party activities to determine whether they are reasonable and suitable. This will consider whether existing regulations require modifications to provide players with more protection.

Finansdepartementet emphasized that it's critical to have openness and transparency in party lotteries, particularly when financing political parties. They note this will help maintain high-level trust in the political party system.

The inquiry team might recommend potential requirements for political parties to declare their lottery game revenues. They will also investigate any exemptions for playing lottery games. However, the investigations will primarily center on how lotteries finance political parties in Sweden, excluding cultural, social, charitable, and artistic causes.

Here is the statement from Finansdepartementet:

"Openness and transparency are important prerequisites for a democratic society. This applies not least to the question of how political parties are financed. The gambling market is surrounded by extensive regulations against the background of the need to reduce the risks of the social harm that gambling can entail. Large parts of the regulations for games have been fundamentally changed in recent years. It is important to maintain a high level of trust in the political system and that political power is not used to create undue advantages.”

This move comes when the government seeks to introduce new and stricter penalties for Money Laundering Act violators. The idea is to effectively tackle criminal activities in the country's gambling and betting industry.