Swedish government: No “definite” grounds for temporary online gambling measures

A Swedish government committee has criticised Minister of Social Affairs Ardalan Shekarabi over his role in the introduction of temporary Covid-19 limits on online casino gameplay, suggesting there is no “definite conclusion” to support these measures.

In a 412-page report into the performance of the Swedish government during the Covid-19 pandemic, the Riksdag Constitutional Committee called into question statements made by Shekarabi at the unveiling of the temporary measures on 23 April 2020.

At the time, Shekarabi said: “The government sees major risks in the gaming area right now.

“The serious financial consequences that follow in the wake of the coronavirus outbreak with increased risk of unemployment and sick leave increase the risk of mental health and gambling problems including debt.

“What we are seeing now is a dangerous cocktail that risks increasing the risks of problem gamblers and gambling addicts,” he added.

At the press conference, the Swedish government rolled out a cap on weekly player deposits set at SEK5,000 (£400) as well as weekly bonuses limits of just SEK100 and a requirement for players to set mandatory limits on playing time when playing online casino games.

The measures have had a catastrophic effect on Swedish online casino operators’ revenue and, it has been suggested, contributed to a decrease in channelisation and an increase in the Swedish black market for online gambling.

Responding to an external complaint from an unnamed party, the committee called into question the basis for this assertion, highlighting information provided to the ministry by the Swedish Gambling Authority on 17 April indicating that online casino and betting had decreased by 6% year-on-year.

“An email exchange between an official at the government offices and analysts at Spelinspektionen (SGA) shows the Swedish Gaming Inspectorate had stated that it was not possible to know whether gambling on online casinos had increased,” the committee wrote.

“An increase in sales at some companies could instead be due to that large companies had gained market shares from small companies, which did not need to be linked to the corona pandemic,” the report stated.

The committee also referenced figures provided by Svenska Spel in April 2020 which showed a 4% year-on-year decrease in revenue within the group’s Sport & Casino division during Q1, the primary business dealing with online gambling operations.

A written response provided by Shekarabi to fellow Swedish MP John Weinerhall after he questioned the need for “extreme” measures to stop a potential spread of problem gambling during Covid-19 was also highlighted by the committee.

“Statistics from the Swedish Gaming Inspectorate indicate that gambling in commercial online gaming, which includes online casino, may have increased in Sweden during the coronavirus pandemic,” Shekarabi wrote in his response.

“The range of land-based games and betting objects has decreased and, in some cases, disappeared completely. This in combination with increased social isolation and economic vulnerability in society increases the risk of consumers to a greater extent than before to seek out in particular risky forms of gambling such as online casinos.

“The situation that has arisen must therefore be taken seriously and all measures that can be taken to ensure strong consumer protection and reduce problem gambling needs to be analysed,” the minister added.

Addressing the evidence provided, the Riksdag committee asserted that government ministers needed to have “special consideration” when making statements, and that it was a prerequisite that these statements must be correct.

“It has become clear that the minister has based his statement on information that does not allow for a definite conclusion as to whether gambling had increased or not,” the report said.

“The minister is responsible for his opinions and also for the information he provides being correct,” the Riksdag Constitutional Committee added.

Responding to the committees’ report, Swedish trade union BOS called for an end to the temporary measures which are set to be extended to November, as Sweden struggles to shake off the pandemic.

“Everyone has known that there was no basis for the statement about the alleged increased online casino gambling. It is welcome that the Riksdag Constitutional Committee now confirms that,” BOS CEO Gustaf Hoffstedt wrote.

“Ministers must have a basis for their statements, it is not enough to say things just because it fits into the policy you want to pursue.

“The minister’s statements about the alleged but unfounded increase in online casinos during the pandemic are the main reason why this form of gambling is still subject to very strict temporary restrictions.

“The next step must reasonably be for the government to quickly end these restrictions,” Hoffstedt concluded.