Swedish trade group BOS on the fight against betting market restrictions
As the Swedish Gambling Authority toys with further restriction of the sports betting market, how is Swedish trade association BOS working to keep the industry free of stricter regulation?
In April, Sweden’s sports betting industry hit a potential roadblock, when the Swedish Football Association reported several instances of betting markets being offered on matches involving a majority of players under the age of 18.
Under the Swedish Gambling Act, betting on matches involving a majority of players under the age of 18 is illegal.
And in July, eight operators, including bet365 and GVC, were hit with fines totalling £3.9m for offering such bets. However, there is still confusion amongst many firms in Sweden as to what constitutes a “majority”.
In the absence of a concrete definition, the Swedish Gambling Authority’s (SGA) anti-match fixing unit has been in consultation with the industry regarding a set of specific standards for operators. Further regulations and guidance are expected in 2020.
However, in the rush to provide further clarity, the concern is the SGA will further restrict the market, something which Swedish operator’s union BOS is keen to avoid. BOS CEO Gustaf Hoffstedt chats to EGR Intel about the state of play in Swedish betting.
EGR: What does BOS and its members want to see from any regulatory changes in respect of sports betting from the SGA?
Gustaf Hoffstedt (GH): Clear guidance. Beforehand and well-motivated – not afterwards as a fine including an invoice of SEK10m or more.
EGR: Other markets have toyed with the idea of heavily restricting betting markets which are deemed to be more at risk of match-fixing, how do you view this approach?
GH: It will not work in Sweden, nor in any other jurisdiction.
EGR: What are the consequences?
GH: The first consequence is probably celebrations at unlicensed betting operators and at the criminal group that organise match fixing. The unlicensed operators hate the competition from the regulated licensed operators, and the criminal leagues hate the monitoring of the betting markets and the cooperation that the licensed operators have with law enforcement.
EGR: Do you think operators will leave the Swedish market if the SGA chooses to impose further restrictions on available sports betting markets?
GH: Yes, and that has already happened in respect of GiG which recently decided to shut down its Swedish sportsbook. However, what the operators do and don’t do is not what keeps me awake at night.
The important development to follow is the customers behaviour. How many of them will abandon the regulated market should the punters only be able to find the games they are looking for among the unlicensed operators? I believe that the sports betting vertical is already below the Swedish government’s channelisation goal of 90%.
EGR: What contact has BOS had with the SGA in respect of the regulatory changes proposed?
GH: What contacts with the SGA have we not had? We have contact with representatives at the SGA several times a week, since they have the mandate to impose even harsher regulation compared to what we face today. I believe there is a rising concern at the SGA about the channelisation and what impact additional betting restrictions would have on it.
EGR: Does BOS plan any guidance for operators ahead of the proposed changes?
GH: We will take the fight to keep the sportsbook wide, deep and attractive within the licensing system. Our guidance for operators and suppliers that share that vision is to join us. We meet hard resistance every day from the state-owned operator and its associated stakeholders, and they have at least ten times the resources that we have in their lobby efforts.