Sweden to set strict deposit and bonus limits for remainder of 2020
Bonuses will be capped at SEK100 per week under new Covid-19 restrictions unveiled by Ardalan Shekarabi
Swedish-facing operators are in the process of dealing with new coronavirus-led online gambling restrictions after the government moved to cap weekly player deposits at SEK5,000 (£400).
Weekly bonuses will also be limited to just SEK100 (£8) as part of measures recommended today by social security minister Ardalan Shekarabi.
In a press conference, Shekarabi confirmed the restrictions would be introduced to combat a potential rise in online gambling harm during Sweden’s Covid-19 lockdown period.
The government has recommended the restrictions come into force on 1 June and they will be open to consultation until 7 May.
Swedish consumers are now also required to set mandatory limits on playing time when playing online casino games.
Shekarabi said: “The government sees major risks in the gaming area right now.
“The serious financial consequences that follow in the wake of the coronavirus outbreak with increased risk of unemployment and sick leave increase the risk of mental health and gambling problems including debt.
“What we are seeing now is a dangerous cocktail that risks increasing the risks of problem gamblers and gambling addicts,” he added.
Ardalan Shekarabi has long been a critic of the Swedish gambling industry Source: Swedish government
In tandem with the new measures, the government also revealed plans to help the Swedish Gambling Authority (SGA) block unlicensed operator sites, as well as the possible introduction of tougher marketing restrictions and punishments for both licensed and offshore operators.
Industry commentators have been quick to suggest the extreme measures will drive customers away from the licensed framework and towards black-market operators.
Betsson CEO Pontus Lindwall said: “In order to protect consumers, you need to ensure they use services provided by licensed companies and I am not sure the suggested proposals will do that.
“The proposals could also be hard to implement from a technical stand point in a short time frame,” he added.
Gustaf Hoffstedt, CEO of Swedish trade association BOS said: “The suggested measures will accelerate the leakage of Swedish punters from the licensed system to the illegal market. When it comes to online casino, we already have a leakage of approximately 25%.
“This means that the governmental measures that were intended to strengthen consumer protection in reality creates further incentives for the punters to abandon the regulated market to another market with zero costumer protection,” Hoffstedt added.
Operators with high exposure in Sweden will be hardest hit, including LeoVegas. The operator’s share price was down by more than 10% at the time of writing.