The Government-owned gambling operator published an op-ed in Dagens Industri, Sweden’s largest business newspaper, at the beginning of the month, with a report on the country’s market being published at the same time.
Svenska Spel laid out 18 proposals to solve problems within the Swedish gambling industry, including stronger protections for young people, stopping unlicensed operators and classifying forms of gambling with different levels of risk, including stricter requirements, such as tighter marketing restrictions, for high-risk verticals, with online casinos mentioned.
Even greater illegal market shares
It is the latter point which BOS has argued against, publishing its own op-ed in Dagens Industri and a post on its website. The trade association stated that the restrictions would mainly affect online casinos, which already face tough competition from unlicensed and illegal operators.
As such, BOS believes the proposal would damage protections to guard customers and award “even greater market shares” to unlicensed and illegal online casinos.
“It is a natural consequence if the legally licensed gambling companies are prevented or prohibited from marketing themselves and their products,” commented BOS Secretary General Gustaf Hoffstedt.
“The proposal that Svenska Spel dresses up in the name of consumer protection would therefore, on the contrary, harm consumer protection, as we know that a transition from licensed to unlicensed gambling entails an increased risk of problem gambling.”
BOS added that marketing restrictions, or even an advertising ban, on online casinos would benefit Svenska Spel commercially because of its monopoly on the lottery.
Hoffstedt said: “A ban on advertising for online casino would mean an enormous advantage for the monopolist Svenska Spel, which then, as the only operator on the Swedish gambling market, can indirectly continue to advertise online casino via its lottery products.”
Regulatory review
The arguments made by BOS compound on its calls in September for Swedish decision makers to undertake more effective regulatory action and to review the current legislative structure for the country’s licensed gambling market.
This request followed a report by Spelinspektionen, the Swedish gambling authority, which estimated that the country’s market channelisation rate in 2024 was 85%, down 1% when compared to the previous year’s 86%.
Hoffstedt commented: “With this assessment, the SGA confirms that Sweden’s major problem in the gambling market is online casino. It is unacceptable that around a quarter of all online casino gambling is leaking out of the licensed market.
“It is equally unacceptable that this has been accepted by political decision-makers for half a decade, since the channelisation has also been low in previous assessments, without effective regulatory measures being taken.
“Later this month, gambling investigator Marcus Isgren’s proposal to change the scope of the Gambling Act will be presented. It is a welcome change in the law that will criminalise almost all unlicensed gambling in Sweden.
“But anyone who understands the gambling market knows that the elephant in the room is that the licensed market is so tightly regulated that it does not appear attractive enough in the eyes of the consumer. Without a review of, for example, the total ban on bonuses and other loyalty programs, next year’s channelisation assessment from the SGA will also be a disappointment.”
