Sweden primed to extend unpopular bonus limits beyond 2020
Government launches new consultation on extending restrictions until July 2021 as coronavirus pandemic continues
Sweden has launched a consultation into extending emergency Covid-19 gambling industry restrictions until the end of June 2021 in a major blow for operators.
The measures were expected to run until the end of 2020 after being introduced in July, but the Swedish government is now willing to extend them for a further six months as the coronavirus pandemic continues.
“The spread of infection entails great risks for consumers,” the Swedish government said in a memorandum accompanying the consultation document.
“The reduced range of land-based games can, in combination with increased social isolation and economic vulnerability in society, entail a risk for consumers to a greater extent than before to seek risky forms of gambling, e.g. online casinos,” it added.
Under the current system, weekly player deposits are capped at SEK5,000 (£437) with weekly bonuses capped at SEK100 (£8).
In addition, Swedish consumers are now also required to set mandatory limits on playing time on online casino games.
“We see that the development of Covid-19 is going in the wrong direction in several parts of the country,” Swedish Minister for Social Affairs Ardalan Shekarabi said.
“The situation is very serious.
“In the wake of the pandemic, we see continued risks in the area of gambling, which means that we need to act to reduce the risks for vulnerable consumers,” Shekarabi added.
These restrictions have proven to be extremely unpopular among Swedish-licensed operators and even with the Swedish Gambling Authority (SGA), which previously questioned both the validity and enforceability of the restrictions.
Swedish trade association BOS previously claimed the restrictions could reduce Swedish channelisation to licensed online casino operators to as little as 60%, suggesting that players could switch to the black market in search of bigger bonuses. The trade body also said there is no evidence of a rise in online gambling during the pandemic.
LeoVegas CEO Gustaf Hagman addressed these “troubling developments” during the operator’s Q3 financial results, where Nordics net gaming revenue decreased by 20% as a result of the restrictions.
“The problem is big and is shaking the foundation of the entire Swedish licence system,” Hagman said.
Requests for opinion on the proposals have been sent to several industry stakeholders, including BOS, the SGA and the Ministry of Finance.
Operator opinions have also been solicited from companies including Betsson, Cherry, Svenska Spel, Paf and ATG.
The consultation closes on 23 November 2021.