G3feb21-Sweden

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G3feb21-Sweden Reports SWEDEN MARKET - ONLINE Back Woods Sweden As Sweden attempts to bring in tighter restrictions for its online gambling sector in a bid to prevent an anticipated rise in problem gambling issues, the saying: “Don’t use a sledgehammer to crack a nut” is more than a little apt. Two years ago, Sweden’s gambling market was re-regulated and a new online legislation and Many companies licensed in the sector saw licensing system was introduced. The aim was to disappointing revenue figures for 2019. There are issues create a more sustainable market and wipe out illegal operations. with controlling the unlicensed sector whilst low However, with tough restrictions recently channelisation rates are hindering the market and introduced to control an anticipated increase in problem gambling during the pandemic, tensions making it difficult for licensed operators. There are also are rising among online gambling operators who say this is now simply driving players back in the claims that penalty cases against licensed operators are direction of black market operations; essentially undoing what the new law intended to resolve in unjust whilst unlicensed operators are not penalised. the first place. whilst low channelisation rates are hindering the and bonus schemes, which will now continue It’s been a tough couple of years for Sweden’s market and making it difficult for licensed until summer 2021 causing a huge backlash in online gambling market despite the initial operators. There are also claims that penalty the industry. fanfare and huge expectations which cases against licensed operators are unjust accompanied the arrival of the new regulations. whilst, on the other hand, unlicensed operators The restrictions were introduced to help are not sufficiently penalised. counteract public concerns during the Covid Many companies licensed in the sector saw outbreak surrounding probable increases in disappointing revenue figures for 2019. There are As the Covid-19 pandemic struck in 2020 certain gambling activity and problem gambling. The issues with controlling the unlicensed sector, limits were introduced for online casino deposits Swedish government responded by introducing P40 NEWSWIRE / INTERACTIVE / MARKET DATA temporary legislation (2020:495), which although it was only due to be continued until stopping players from depositing via multiple included a deposit limit at online casinos of the end of 2020, this was recently extended until casino sites. SEK5,000 per week (per gambling provider) and June 30 2021 thanks to a proposal by Social the introduction of a stricter bonus limit of Security Minister, Ardalan Shekarabi. The limits have apparently already affected SEK100 (€8), plus obligatory time limits on online revenues whilst some say it has also playing time, which also applies to land-based There have been reservations over the new rules, pushed players over to unlicensed operators gaming machines. even from the Swedish gambling authority, who are, of course, not subjected to the same Spelinspektionen (SGA), who have queried how restrictions. This ruling came into force on July 2, and the deposit limit can be enforced, particularly in NEWSWIRE / INTERACTIVE / MARKET DATA P41 “The Covid-19 restrictions have two obvious consequences. The first consequence is that high volume gamblers who play within the licensing system increase their number of accounts to several different gaming companies in order to avoid the deposit limit of SEK5,000.” Gustaf Hoffstedt, Secretary General of BOS Jenny Nilzon at trade association SPER explains: whether applied gambling liability measures system increase their number of accounts to “SPER shares the government’s concern that have had the desired effect and protected several different gaming companies in order to social isolation and economic vulnerability due consumers. For SPER, gambling responsibility is avoid the deposit limit of SEK5,000. Therefore, to Corona risks increasing mental illness for long-term work where the measures need to be the gambling companies no longer get an overall vulnerable groups. SPER therefore understands based on facts and impact assessments.” picture of the individual players gambling that under the current circumstances, with the behaviour. The possibility of taking protective alarming spread of the virus and the In agreement is BOS (Swedish trade association measures against excessive gambling in consequences of that, the government is for Online Gambling) which says the rules are accordance with the statutory duty of care is extending the ordinance on temporary liability misguided and need to be withdrawn. They lost. The duty of care is the cornerstone of measures due to the disease Covid-19. claim the alleged increase in online play during consumer protection in Swedish gambling the lockdown is unfounded. regulation which is now largely put out of action “Having said that, SPER wants to emphasise that by the government. it needs to be investigated whether or not it can Gustaf Hoffstedt, Secretary General of BOS said: be seen that a change in risk behaviour or “The Covid-19 restrictions have two obvious “The second consequence is a likely continued increased gambling problems have occurred due consequences. The first consequence is that high leakage from the licensing system. In the spring to the pandemic. It is also important to analyse volume gamblers who play within the licensing of 2020, the leakage from the Swedish licensing P42 NEWSWIRE / INTERACTIVE / MARKET DATA Essential information and facts about Sweden: Capital Stockhom Total Area 450,295 sq.km Population 10.2 million Median age 41.1 years Religion Church of Sweden (Lutheran 60% and other) Ethnic Groups Czech (64 per cent), Moravian (5 per cent), other Languages Swedes with Finnish and Sami minorities Currency Swedish Kroner (SEK) Government type Parliamentary Constitutional Monarchy Chief of State King Carl XVI Gustaf (since 1973). Heir apparent is Princess Victoria Ingrid Alice Desiree Head of Government Prime Minister Stefan Lofven (since 2014) President elected by vote for five year term. Next election 2023. Prime Minister appointed by President for a four year term. Elections Next elections due 2022 Unemployment 6.4 per cent (2019) Tourism 7.4 million (2019) “The second consequence is a continued leakage from the licensing system. This spring, the leakage from the Swedish licensing system was 25 per cent for online casinos, and that was before Covid-19. It can, without a doubt, be concluded that the Covid restriction does not have a beneficial effect on gambling consumers’ willingness to stay within the licensing system.” Liability Measures due to the spread of Covid- opportunity to play for larger stakes than those 19,’ was published on the Swedish government allowed via Vegas slots. site asking for opinions. Svenska Spel responded on November 23 stating the following: “A survey in October 2020 shows that as many as 86 per cent of Svenska Spel sport and casino “We understand that there is a lack of sufficient customers played commercial online games at information from the relatively short time that two or more gaming sites after July 1, 2020 and has elapsed since the regulation entered into 28 per cent have played at five or more other force in order to draw some definite conclusions gaming sites. Whilst 33 per cent of customer about the effects. However, it is Svenska Spel’s stated they have increased their commercial system was 25 per cent for online casinos, and opinion that the players who hit the deposit and online gambling at other sites other than that was before the Covid-19 restrictions. It can, loss limits and time limits of one licensee, in Svenska after they hit their limit at Svenska Spel without a doubt, be concluded that the Covid many cases, continue to play with another and 55 per cent stated they play the same restriction does not have a beneficial effect on gaming company on the same or another game amount overall or more compared to that played gambling consumers’ willingness to stay within format. Today, it is very easy to continue playing before the regulation was introduced.” the licensing system, as it is perceived as commercial games online with other licensed another layer of regulatory burden to which gaming companies and with gaming companies The ATG horseracing operation has not seen any unlicensed gaming sites are not covered. An without the required licence where both deposit limits imposed and this has also caused some extension of the Covid-19 restrictions will, and time limits are not applicable, plus other consternation in the industry. Meanwhile, a therefore, further lower the proportion of gaming responsibility tools required by Swedish report by Frontiers in Public Health, published in gaming consumers who play within the gaming regulations. September 2020, claimed there was no licensing system, and thus the opportunity to indication of an increase in problematic online offer them good consumer protection.” “Players who hit the loss or time limit on slots gambling intensity during the first phase of the (Vegas) can just as easily continue to play outbreak in Sweden. The report claims gambling A Ministry of Finance referral ‘Extended Validity similar games online with a large number of activity actually decreased by just over 13 per of the Regulation on Temporary Gambling gaming companies and also with the cent during the first phase of the pandemic. NEWSWIRE / INTERACTIVE / MARKET DATA P43 Reports SWEDEN MARKET - ONLINE The hugeimpact of Covid, plus the restrictions on the gambling market, has pushed some companies out of Sweden. Cherry for example shut down in mid May. The ComeOn Group has closed two of its Swedish licensed brands after protesting the government’s limit restrictions on deposits and bonuses. The Sveacasino.com and Cherrycasino.com have closed down although sister brands such as Hajper and Snabbare still continue. COVID AND CHANNELISATION The hugeimpact of Covid, plus the restrictions on the gambling market, has pushed some companies out of Sweden.
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