LeoVegas Group CEO calls for supplier, affiliate and payment licences to beat black market
Gustaf Hagman argues that regulation for entire ecosystem will help licensed sector push back successfully against illegal and offshore operators
LeoVegas Group CEO Gustaf Hagman has claimed the black market could be quelled should every actor within the gambling ecosystem become licensed as part of local regulations.
Speaking at the SBC Lisbon Summit this week, the Swede and his fellow panellists were asked by former Pinnacle CEO Paris Smith how the regulated sector can push back against offshore firms.
Hagman proceeded to offer up the bold proposal of requiring suppliers, affiliates and payment providers to also be locally licensed to combat the issue.
His comments came as his native Sweden introduced B2B licences last year, with the Swedish Gambling Authority since issuing warnings to suppliers after games appeared on unlicensed sites.
In May, the regulator hit Hacksaw Studios with an SEK2.6m penalty and Panda Bluemoon with a SEK700,000 fine for deemed failings.
Hacksaw Studios argued it could not be held responsible for an operator partner launching its game in a market where the business was not licensed.
Meanwhile, Panda Bluemoon pointed to a breach of contract with a distributor of its games.
Sweden’s Nordic neighbour Finland is also planning on introducing a B2B licence as part of its shift from a monopoly model to a multi-licence jurisdiction.
From 2027, licensed operators will be able to go live in Finland, with 2028 seeing the introduction of a B2B licence.
Hagman said: “We see some small steps in that direction now. Some markets actually need B2B licences, so meaning that there is also a licence for the suppliers in those markets.
“I would say that not only the gaming suppliers should be licensed, but also payment providers and, maybe to some extent, affiliates.
“And then you can put restrictions on the gaming suppliers, payment providers and affiliates not to supply companies and operators that are not licensed in the market.
“It’s very easy, actually. If you’re going to be in the market, then you need a licence. That’s it.”
Hagman’s fellow panellist Nils Andén, CEO of Kindred Group, appeared to agree with the proposal as he argued operators are often standalone in terms of strict regulatory requirements.
“I think it’s a really good point because we’re talking about what we as operators can do, but it’s not something you get the totality of the ecosystem supporting and driving towards a sustainable market,” he remarked.
“You have payment providers and you have banks that provide a huge amount of service to this industry and make a decent chunk of money, but don’t have the same incentive the rest of the market has.”
Elsewhere at the SBC Lisbon Summit, several leading UK operators revealed initial conversations with Britain’s new Labour government have been promising in delivering the aims laid out in the white paper into the Gambling Act 2005 review.