Swedish operators warn of market exodus over strict deposit and bonus limits
Bosses at Betsson, Kindred, Hills, LeoVegas and NetEnt question Sweden’s Ardalan Shekarabi for penalising regulated operators
Sweden’s largest regulated gambling firms have criticised the government’s recent proposal to introduce deposit and bonus restrictions, claiming it could eventually lead to operators exiting the market.
In a letter authored alongside trade association BOS, the bosses of Betsson, Kindred, LeoVegas, William Hill and NetEnt claim the new regulations are out of step with the initial aims of creating a safer gambling environment through regulation and will instead fuel the black market.
Regulations imposing a SEK5,000 weekly cap on player deposits as well as a SEK100 cap on operator bonuses were unveiled by Swedish authorities last week.
The operators claim Sweden’s Minister of Social Affairs Ardalan Shekarabi is creating a “Wild West 2.0” in the name of consumer protection, the result of which could see Sweden’s black market thrive.
The letter points to a recent BOS report which claims that one in four Swedish players are gambling with unlicensed operators over their licensed counterparts.
In the report, researchers from Copenhagen Economics estimated Sweden’s channelisation rates to be as low as 72% in online casino and 80% in sports betting.
“Minister Shekarabi knows about this, he also has access to the statistics of a falling channel, but for some inexplicable reason he does not seem worried that more and more players are going to the uncontrolled black market,” reads the letter.
The operators claim the reduced channelisation, together with the potential for further regulatory restrictions in review of operator advertising, could see many licensed operators exit the market as the advantages of being regulated begin to blur.
“Companies, regardless of industry, want to be where the customers are. If the customers leave, the companies will follow suit,” the letter continues.
The letter further questions whether there has been an increase in gambling following Sweden’s Covid-19 lockdown, with both private and state operators insisting that gambling rates have in fact decreased.
The operators have offered to share player data with the Swedish authorities to back up this claim.
“The sad thing is that the government, with Shekarabi at the forefront, does not want to talk to us actors about how we can work together and, with the support of the insight we possess, develop a well-functioning Swedish gaming market,” the letter concludes.
Shekarabi has not responded publicly to the BOS letter.