Swedish Operators Call for Urgent Gambling Reforms

Sweden’s Gambling Industry Association (Sper) has called on Sweden’s government to ramp up efforts to overhaul gambling regulations following troubling new data indicating a decline in licensed market participation. ATG, one of Sweden’s major licensed gambling operators, estimates that market channelization may have fallen as low as 71% despite the government’s stated goal of 90%.

Operators and Government Agencies Have a Shared Vision

Sper’s board argues that gambling on unlicensed platforms presents some serious risks for Swedish consumers since such sites evade Sweden’s gambling regulations, neglecting player protections and failing to uphold responsible gambling practices. With no deposit limits or oversight, these black market operators allow for risky gambling behaviors and potential criminal activity without contributing taxes.

Sweden’s National Audit Office (NAO) echoes these concerns, recently highlighting that the Spelinspektionen, Sweden’s gambling regulator, has conducted limited inspections and too little follow-up with regulatory enforcement, contributing to the increasing spread of black market entities. The NAO urged for more systematic inspections and enhanced regulatory tools to protect Swedish consumers.

“Consumers are left without the strong protections that licensed operators provide, and policymakers bear responsibility for allowing this trend to continue.”

Sper

Sper noted that addressing the Swedish gambling sector’s underlying issues required a mix of regulatory changes and expanding Spelinspektionen’s role. Existing regulatory deficiencies have left certain loopholes that unlicensed operators continue to exploit. Sper and NAO agree that the country’s regulator should adopt more frequent, risk-based inspections and follow-up visits to ensure that licensees remain compliant.

Industry Representatives Offered Several Proposals

Sper is proposing several measures for enhanced consumer protection to address current regulatory gaps and reduce the appeal and accessibility of unlicensed gambling. The organization argues for enhanced measures to block unlicensed gambling operators from accepting Swedish bets. It also suggests that the government study potential website-blocking tools to safeguard Swedish players from such sites.

Customer-facing measures like Spelpaus, the Swedish self-exclusion program, also require updates like regular follow-ups on self-excluded players and enhanced funding for the National Gambling Helpline. Sper also advises the government to fast-track proposed payday loan regulations and introduce a “loan-stop” registry, protecting consumers from financing their gambling with high-interest loans.

“The ongoing issue of unlicensed gambling is not only a betrayal of consumers but also of the licensed operators who comply with Swedish laws and contribute to society.”

Sper statement

Sper and the NAO are adamant that protecting Swedish consumers from the dangers of unregulated gambling requires strong political will and a proactive approach. Sper’s proposals highlight the urgency of adapting regulations to safeguard players and re-establish a licensed gambling market that prioritizes consumer safety and can adapt to shifting industry trends.