The sector reveals itself against the Swedish government
Last April, the Swedish government presented a package of urgent measures to prevent gambling addiction and protect users with gambling addiction during the current crisis marked by COVID-19. The industry has spoken out against a more restrictive framework that, it warns, encourages the rise of illegal gambling.
The chief executives of the main players in the online sector in Sweden have sent a statement to the Swedish government expressing their dissatisfaction with the new restrictions on casino bonuses and deposits. ©nextvoyage/Pixabay
The Swedish Online Gaming Trade Association (Branschföreningen för Onlinespel, abbreviated BOS) gave last April a blow on the table before a new wave of restrictions which, according to the organization, torpedoes the very regulatory system in force in the Scandinavian country since January 2019. Similar measures they have also been applied in our country.
The controversy is due to the strict restrictions on deposits and bonuses of online casinos. The Swedish government's new plan aims to mandatorily limit promotion offers to 100 kronor (about $8) and weekly deposits to 5,000 ($471). These measures would come into force on June 1 for a trial period of 6 months.
On April 30, the executive directors of Betsson, Kindred Group, LeoVegas, NetEnt and William Hill published a open letter addressed to Ardalan Shekarabi , Minister of Social Security with powers over online gambling. On May 5, the directors of 10 other companies in the sector , including Yggdrasil and Quickspin, were adhering to the protest. According to Gustaf Hoffstedt, secretary general of BOS, these 15 companies represent more than half of the sector in Sweden.
In the statement, BOS warns that these new restrictions will facilitate the expansion of illegal gambling on the internet , especially among those players who bet high sums of money, which in the sector are known by the slang in English high rollers. According to the signatories, one in four Swedish kronor ends up on unlicensed portals in the country. In addition, the letter refers to a lack of cooperation and dialogue on the part of the government to improve the industry and protect users.
"The sad thing is that the government, with Ardalan Shekrabi at its head, does not want to talk to us about how we can work together and, with the help of our knowledge, develop a properly functioning gambling market in Sweden.”
For its part, the regulatory body in Sweden, Spelinspektionen, has questioned the effectiveness of the measure . According to data from the national regulator, between 5 and 25 percent of players generate 90% of the revenues reported by the sector in the country. This means that the vast majority of users bet significantly smaller amounts on those proposed in the new restrictions.
The sector in Europe has not taken long to echo of these measures and the threat they pose to both the security of users and the stability of the industry. The European Gaming and Betting Association (EGBA) has joined the protest and calls on Swedish politicians to take into account the considerations of the sector and the state regulatory body.
“We understand that politicians seek to reassure and protect citizens at this difficult time, but the measures proposed to the game could harm customers instead of protecting them. Many Swedes are already betting on unlicensed sites; these restrictions will make these portals, which do not apply any limits, more attractive. We must keep in mind that gambling is a human behavior, that consumers will make their own decisions and that top-down regulations work rarely. In this case, it could have harmful or counterproductive effects by promoting gambling on unregulated websites.” – Maarten Haijer , Secretary General of EGBA.
Users are looking for alternatives in illegal gambling
The latest analysis on user behavior in Sweden warns of a dangerous increase in internet searches for unlicensed casinos in the country. ©B_A/Pixabay
The Swedish government's goal with the regularization of the sector was to channel at least 90% of the industry as a strategy to end the illegal online gambling in the country. However, reports point out that with each new restriction the government moves away from its goal.
According to data from Spelinspektionen and BOS, the Swedish government's measures would entail a decrease in channeling to the legal sector which, according to data from Spelinspektionen and BOS, is estimated at around 81-85 percent overall. In the case of online casinos, the percentage drops to 72%. The industry fears that with these measures illegal operators attract high-rollers players . Experts point out that this decrease in channeling has been occurring since the first quarter of 2019 when the government introduced the first wave of controversial restrictions to the sector.
BonusFinder, an affiliate marketing company, has sent the Swedish government a comprehensive report analyzing the worrying increase in internet searches for illegal casinos in Sweden. According to the company, 30% of users in Sweden opt for illegal casinos . According to the sector, this means great losses for the state coffers: while licensed operators contributed 3,600 million Swedish crowns (approximately 340.70 million euros), unregulated pages did not pay taxes in the country.
The report, which the company has sent to the government to ask it to rethink these measures, indicates that in the last 12 months there has been a 305% increase in searches for pages operating illegally in Sweden , while searches with the words "unlicensed casino” , "casino without license Sweden” and "casino without self-exclusion” they have reported a 710% increase.
“Our message to the government is to seriously reconsider its proposals. Stricter measures would only serve to further stoke the existing black market. Its consequences will be palpable for a long period of time, since players lost in the illegal offer will not return so easily to regulated portals once the restrictions are lifted.” – Fintan Costello , Managing Director of BonusFinder
Will Sweden go ahead with its decision or will it back down after pressure from the industry? From minkcafe.co we are still very aware of the development of events.
