Svenska Spel stops all online casino advertising for 2019
Former monopoly operator calls on other companies to follow suit
Svenska Spel will cease all forms of online casino advertising for the remainder of 2019 following “intensive internal discussions” on how best to protect customers.
The former Swedish monopoly operator said its online casino advertising already had a “restrictive design” and would now be stopped until 2020.
Svenska Spel CEO Patrik Hofbauer said online casino is in “a class of its own” when it comes to marketing, with the operator continuing to market its other products.
The operator highlighted a recent Swedish Public Health Authority survey which revealed that 30% of online casino players have encountered issues managing their play, when compared to only 3% of those playing online lottery or scratch cards.
Despite taking this decision, Svenska Spel said there was no “general link between game advertising and gaming problems” citing a reduction in problem gambling rates over the last three years despite a rise in advertising volume over the same period.
The operator said the biggest area of risk was advertising to existing problem gamblers, adding that “those who are already at risk are adversely affected by advertising”.
Svenska Spel is the early leader in the regulated Swedish market through two months of the year, with an approximate 21% share, although that data includes SSBT revenues. ATG is second with 15% and Unibet third with 14%.
Earlier this week, LeoVegas CEO Gustaf Hagman, Kindred CEO Henrik Tjärnström and Betsson CEO Pontus Lindwall jointly authored an article in Swedish news outlet DI in which they attacked Svenska Spel and ATG for contributing 70% of the increased advertising by gambling operators in Sweden.
In the editorial, the operators called for a ban on scratchcard advertising and a risk classification for players, two things that Hofbauer has dismissed as not addressing the wider issue.
“If you are serious about taking responsibility, then you should address the problems where the problems exist, even if it strikes the revenue in the short term. In the long term, this is the only sustainable one. It is also only when we can improve the industry’s reputation.” Hofbauer added.
Svenska Spel have called on other Swedish operators to follow their lead and cease online casino advertising for the remainder of the year.
The Swedish government has threatened to impose advertising restrictions on the industry if it cannot effectively self-regulate.