Unhampered Self-regulation: Sweden, Unbounded by Limitations
Gambling Ads in Sweden: The Amazing Story of Self-Regulation
In 2018, Sweden saw a flood of gambling advertisements, with €620 million spent on promotional offers. The situation became so distressing that the Minister of Social Affairs launched an extensive investigation into the gambling market.
The investigation, which lasted two years, culminated in a 2020 report calling for strict restrictions on gambling advertising. However, the Swedish parliament lacked populism, and the lawmakers failed to support these restrictions.
A surprising turn of events unfolded as the operators themselves stepped up to regulate their advertising load on consumers. Year after year, the advertising expenditure on gambling offers decreased. Last year reported the lowest spending since 2018, which was less than half of the 2018 budget. The ad spend also fell by 15% compared to the previous year, amounting to €280 million.
In May 2022, the Swedish government declined to bring in strict advertising restrictions, including a ban on television advertising. But guess what? The operators continued to curb their advertising activities on TV, radio, print media, and outdoor advertising. The advertising pressure on different gambling segments remained balanced, with 30% allocated to online casinos, 28% to betting, 26% to lotteries, 12% to horse racing, and 4% to bingo.
If the new coalition government of Sweden refrains from imposing prohibitions, we can expect to witness the fascinating experiment of voluntary self-restraint by operators. Businesses in countries where the gambling market does not compete with illegal gambling can find a balance of advertising activities that won't cause public discontent.
Because nobody wants to be toxic, right?
In depth, Sweden's reduction in gambling advertising spend is not primarily due to methods that evade strict restrictions. Instead, regulatory actions and enforcement have been strengthened, with a clear trend towards tightening oversight rather than loosening it.
Regulatory bodies have taken numerous measures to control the market, such as banning unlicensed operators, intensifying supervision of licensed operators, reviewing and enhancing the Gambling Act, and increasing public transparency. These actions directly limit the presence and spending of illegal operators in the Swedish market.
So, although Sweden has not implemented a blanket ban on all gambling advertising, its approach is far from light-touch regulation. The combination of banning illegal operators, closely monitoring licensed ones, and publicly listing enforcement actions amounts to a strong, regulation-driven decrease in gambling advertising spend.
(Source: Sergei Ginsburg)
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- With a decrease in advertising spend, Swedish gambling operators have balanced their campaigns across various segments, dedicating 30% to online casinos, 28% to betting, 26% to lotteries, 12% to horse racing, and 4% to bingo, demonstrating a commendable effort towards responsible gambling.
- The Swedish government's approach to gambling advertising is neither lax nor promoting a free-for-all scenario. In fact, stringent regulations such as banning unlicensed operators, intensifying supervision of licensed operators, and increasing public transparency have resulted in a significant decline in gambling advertisements, a testament to the country's commitment to responsible gambling practices.
