Proposals from the Swedish government to impose restrictive conditions on online gaming have been criticised.
Licensed operators within Sweden will be forced to impose deposit limits of SEK5,000 (£428) for online casinos as of July 2 up until the end of the year, while a bonus cap of SEK100 (£9) will come into force with the new restrictions.
The rules have caused widespread anxiety within the igaming industry, with Kindred Group publicly criticising the role played by regulator Spelinspektionen which it says is harming channelisation targets.
BonusFinder.com has carried out extensive research into the widening rates of black market activity in Sweden as well as the decreasing channelisation and its managing director Fintan Costello said that the decision by the Swedish government will only serve to drive more players towards the black market, which is “one click away”.
He said: “Further bonus restrictions and relying on hard deposit limits instead of affordability checks will make the legal market even less appealing to local players.
“Furthermore, giving licensees only two weeks to implement these changes and alter marketing will be a huge and costly challenge for operators.”
The European Gaming and Betting Association had earlier joined the chorus of criticism, stating that the reforms had the potential to be counter-productrive.
"EGBA believes the proposed deposit limit could have unintended and detrimental effects – and harm more customers than they protect," the organisation said. "The justification for the restrictions is not evidence-led – online gambling in Sweden has decreased.
"Based on the available data, there has been no increase in online gambling in European countries – including Sweden – since the coronavirus lockdowns. On the contrary, online gambling has decreased in Sweden by six per cent and it has also decreased elsewhere as reported by, for example, the Belgian, Danish and UK regulators.
"Rather than one-size-fits-all restrictions, which will have no effect on the majority of customers and jeopardise consumer protection for those they seek to protect, EGBA supports targeted measures, including tailored interventions, to protect those at risk of problem gambling at this time."
The Swedish Trade Association for Online Gambling, BOS (Branschföreningen för Onlinespel) stated: "Neither the Ministry of Finance nor any other stakeholder has presented facts to support the underlying assumption that gambling in general – and play on online casinos in particular – have increased during the Covid-19 crisis.
"The government is aware of the alarmingly low percentage of online casino players who now play within the licensed Swedish system. The government has also seen data from the Swedish Tax Agency that show gambling on horse races – and not online casino gambling – has increased during the coronavirus crisis.
"We share the government’s view that protection for and of players is of the utmost importance. We agree that this work must continue and that together we can create a sustainable gambling market with strong consumer protections. But the work must be based on facts."
