Through a memorandum submitted for discussion until November 23, the Government of Sweden plans to enforce the current restrictions on the covid-19-related gambling industry and extending them well through June 2021.
“We see that the development of COVID-19 is going in the wrong direction in several parts of the country. The situation is very serious. In the wake of the pandemic, we see continued risks in the area of gambling, which means that we need to act to reduce the risks for vulnerable consumers,” said Minister of Social Insurance Ardalan Shekarabi.
According to Shekarabi, gambling was one of the areas in which vulnerabilities were still visible and needed a direct response to reduce outstanding risks. The drafted measures include a SEK 5,000 deposit limit as well as a mandatory time limit for those wagering via online casinos and ATMs, and bonus limits up to SEK 100.
Other proposals found on the memorandum have indicated that there will be a mandatory limit on playing time. Furthermore, bonuses will be limited to just SEK100 by operators who provide online casinos and ATMs.
At the time the original measures were rolled out, there were many skeptics. Even the Swedish Gaming Authority (Spelinspektionen) suggested that if the industry is overregulated that could make the gaming experience unsustainable for operators and force players to shift their focus onto unregulated, offshore operators where consumer protections are poor.
A study by psychiatrist Anders C. Håkansson carried out in June showed that Swedish gamblers do bet more during the lockdown while the National Association of Gambling Addicts argued that the first data would be available in the late fall.
The Swedish regulator is also wary of these measures being introduced. The regulator stated that the SEK5,000 deposit limit will substantially reduce the number of players gambling during the pandemic while it may also encourage gamblers to look at unlicensed operators, which will result in the consumer having little to no protection.
The government’s position is motivated by the fact that due to the shut-down of a series of land-based venues, and the increased social isolation and economic vulnerability in society, more people are prone to indulge in reckless gambling behavior, incurring a financial loss.
The Swedish trade association BOS argued against the first measures saying that, as a result, the traffic to licensed operators may fall to as little as 60%.
Backing the Swedish regulator, the European Gaming and Betting Association added that “the proposed deposit limit could have unintended and detrimental effects – and harm more customers than they protect” and “will do more to hit gambling and tax revenues”.
