Swedes' Gaming Authority Proposes Additional Investigation into Gambling Amidst Failing Channelization Standards

The Branschföreningen för Onlinespel (BOS), a trade body representing the licensed gambling sector in Sweden, has called for a comprehensive review of the Swedish gambling market. The BOS argues that incremental improvement is not enough to protect the licensed sector, which is currently facing a severe threat from offshore operators.

According to BOS Secretary-General Gustaf Hoffstedt, the situation is critical. Offshore operators are attracting too many players, and less than half of gambling is taking place in the licensed sector since Sweden updated its regulatory regime.

The BOS is particularly concerned about the persistent threat posed by offshore operators. They propose that the inquiry should examine the strict ban on loyalty bonuses, a policy they believe drives some customers to offshore companies offering more generous promotions.

The government is conducting a narrower review, with investigator Marcus Isgren delivering conclusions in September on extending the scope of application of the Gaming Act. However, industry associations such as the BOS have recommended measures like payment blocking, IP-blocking of illegal gambling sites, enhanced cooperation and training for authorities, and strengthening regulatory bodies such as the GGL to prevent leakage to the unlicensed gambling market.

The goal set by the government is for at least 90% of gambling to go through licensed entities. Despite showing a significant improvement compared to the period before Sweden's updated regulatory regime, the channelization rate, which measures the ratio of gambling activity carried out with licensed operators compared to unregulated ones, is still below the target at 85%. Online casinos have rates between 72% and 82%.

With elections closing in, the BOS is making the case that protecting the licensed sector should be considered an economic and political priority. The government is also considering a ban on gambling with credit to minimize gambling harm.

Regulators have drawn attention to successful crackdowns against illegal advertising and payment channels. However, industry stakeholders doubt that these measures will be enough to address the issues in the Swedish gambling market. The BOS sent a letter to the Ministry of Finance, urging a fresh, wide-ranging inquiry into the Swedish gambling sector.

Swedes' Gaming Authority Proposes Additional Investigation into Gambling Amidst Failing Channelization Standards