Several major Swedish online gambling licensees have banded together to oppose the Ministry of Finance’s plans for further draconian restrictions.
In a statement issued by BOS, the Swedish iGaming trade body, nine high-profile CEOs have urged the government to reconsider its “unrealistic proposals”, arguing that they will simply encourage customers to turn to unlicensed operators.
The signatories of the statement were Pontus Lindwall, CEO, Betsson AB; Henrik Tjärnström, CEO, Kindred Group; Gustaf Hagman, Group CEO, LeoVegas; Therese Hillman, VD, NetEnt AB; Ulrik Bengtsson, Group CEO, William Hill; Lahcene Merzoug, CEO, ComeOn; Alexander Stevendahl, CEO, Videoslots; Tomas Backman, CEO, Hero Gaming and Henric Andersson, CEO, SuprNation.
As we’ve previously reported, elements within the Swedish government, notably Social Security Minister Ardalan Shekarabi, are convinced that the COVID-19 crisis has led worrying trends in player behaviour, which justifies harsh new restrictions.
However, licensed operators are convinced that any further restrictions, like deposit limits, will simply lead channelsition for online casinos to fall even further, as more players chose to play at unlicensed offshore sites.
As an alternative, the CEOs have suggested a package of measures that could be taken help promote safer gambling and ensure high standards. These include extending licensing requirements to cover technology provisions, promoting the national self-exclusion register Spelpaus, the integration of an IQ campaign, enhancing data sharing and risk ratings, and extending the gambling regulator’s oversight of marketplace requirements.
BOS also commissioned consultancy Copenhagen Economics to conduct market research into the issue. Its findings suggested that the government’s current plans risk “losing half the licensed online casino sector,” causing a 63% drop in channelisation demands, and would make the market non-viable for all current licensees.
Explaining their position, the BOS statement read:
“Neither the Ministry of Finance nor any other stakeholder has presented facts to support the underlying assumption that gambling in general – and play on online casinos in particular – have increased during the covid-19 crisis. In its recent report to the Swedish government, the agency responsible for the Swedish gambling market also confirms it hasn’t detected increased gambling during the coronavirus pandemic.
“The government is aware of the alarmingly low percentage of online casino players who now play within the licensed Swedish system. The government has also seen data from the Swedish Tax Agency that show gambling on horse races – and not online casino gambling – has increased during the coronavirus crisis.
“We share the government’s view that protection for and of players is of the utmost importance. We agree that this work must continue and that together we can create a sustainable gambling market with strong consumer protections. But the work must be based on facts.
“The Ministry of Finance has the opportunity to implement a number of fact-based measures that would improve consumer protections without damaging the important channelization. On the contrary, the channelization would benefit with these measures, which would also strengthen consumer protections.”
AYO.NEWS says:
We’ve said it before, and we’ll say it again; it is clear there are some in the Swedish government who are using the cover of the COVID-19 crisis to press ahead with an ideologically driven anti-gambling agenda. While we very much agree with the arguments made by BOS and the signatories of the statement, we can’t help but think they will be falling on deaf ears.
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