Sweden extends Covid-19 online casino restrictions
Temporary caps on deposits and bonusing will now last until 14 November despite industry opposition
Sweden’s government has greenlit proposals to extend temporary Covid-19 measures applying to the country’s online casino market until 14 November.
The restrictions, which include a weekly SEK5,000 (£80) limit on player deposits and a maximum bonus cap of SEK100 were set to expire at the end of June but have now been prolonged due to the continuing Covid-19 crisis.
A month-long consultation on extending these restrictions concluded on 3 May after industry protests fell on deaf ears.
“We see that the spread of Covid-19 is still high in Sweden,” Swedish Minister for Social Affairs Ardalan Shekarabi said.
“The current situation entails great risks for consumers in the gaming market. We therefore need to act to reduce the risks for the most vulnerable consumers,” Shekarabi added.
Sweden’s government first approved measures to limit the online casino sector in June 2020 as part of its response to the pandemic, with the aim of protecting locked down consumers from gambling-related harm.
However, these measures have exacted a significant toll on the country’s licensed operators, with many firms reporting a downturn in revenue following their introduction.
In its response to the consultation, the Swedish Gambling Authority (SGA) revealed its opposition to the deposit limit legislation, calling for a further investigation into the validity and effectiveness of the measure on problem gambling rates.
In addition, Swedish trade association BOS has claimed the restrictions in fact compromise consumer protection in Sweden by empowering the country’s black market and lowering channelisation to licensed firms.
“The Ministry of Finance claims that the restrictions do not constitute a threat to the Swedish-licensed market in its daily struggle against unlicensed gambling,” BOS CEO Gustaf Hoffstedt wrote in the trade body’s response to the consultation.
“As support, the ministry cites statistics that show that 85% of all gambling takes place at Swedish-licensed gambling companies.
“The problem is the channelling is much worse for online casinos, where the channelling is only 75%.
“Thus, every fourth online casino gaming krona leaks out of the system to the black gambling market where consumer protection is often non-existent.
“It is only the black gambling market that has reason to rejoice at the government’s proposal for continued restrictions for Swedish-licensed gambling companies,” Hoffstedt added.