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“ The current situation with the pandemic is of course something out of the ordinary but the temporary regulation regarding limits on deposits and bonuses could be counterproductive measures ” JOSEF ROTTER , NORDIC GAMING
actively targeting Swedish players , including those who have been barred by the self-exclusion tool Spelpaus . This has been confirmed by , among others , several organisations that provide help to people with a gambling problem . These organisations have noted that the majority of those seeking help are playing with the unlicensed operators .
“ The problem is big and is shaking the foundation of the entire Swedish licence system . Quick and strong measures are now needed by Swedish politicians and authorities to ensure a well-functioning Swedish gaming market .”
Kindred , while saying that in the third quarter its results “ held up well ” despite the deposit limits , had previously said in the summer that the new restrictions were a “ populist initiative ” which “ makes one wonder if Sweden aims for reversed channelling ”.
It added : “ The Gambling Act is built up as a framework , delegating powers to government and SGA . Kindred and other operators warned already in 2017 that the delegated mandate was too wide and vaguely phrased .
“ It could also be used by the government to deviate from the overall purpose of the reform . Warnings were not listened to and now we see our suspicions come true .”
CHANNELISATION DEBATE
Earlier this year , Swedish bookmakers association BOS released a report undertaken on its behalf by Copenhagen Economics on channelisation in Sweden . This revealed the extent to which the government was already missing its targets on the conversion of black market play into the regulated arena .
Gustaf Hoffstedt , secretary general of BOS , says that having “ lost the argument ” on online during the spring and summer , the politicians now appear to be ignoring reality .
“ Politicians do understand the importance of a high channelisation , but from a political and a somewhat cynical point of view , that knowledge may be given lower priority compared to measures that are popular among the crowds although they damage channelisation ,” he says .
“ A related aspect is that politicians always tend to overestimate the impact of repressive measures to protect channelisation , e . g . payment blockings . And they always tend to underestimate the importance of letting licensed operators offer a gambling experience within the licensing system that the punters find attractive .”
DIVERGING PATHS
“ The government is aware of the issue of channelisation and the issues that arise from a low rate of channelisation but does not seem to have learned its lesson from before the new Gambling Act and licensing regime entered into force in Sweden ,” says Nordic Gaming ’ s Rotter .
“ Unfortunately , we are increasingly seeing a situation that is becoming more and more similar to the grey market we saw prior to 1 January 2019 .”
Rotter suggests that part of the problem is that it is not illegal to accept Swedish players so long as the operator does not target the Swedish market by offering its services in the Swedish language and accepting Swedish krona .
November 2020