The need for a safer Swedish gambling market

We in the gambling industry want Sweden’s gambling market to be safer, healthier, and more secure. We have outlined actions to achieve this, but it’s now up to the government to take responsibility, accelerate its efforts, and do more.

Recent data show that a growing share of gambling in Sweden is taking place on unlicensed sites. According to an analysis by ATG, one of Sweden’s licensed gambling companies, the “channelization” rate—the share of Swedish gambling occurring with licensed companies—could be as low as 71%, far below the target of 90%. This means an increasing amount of gambling is taking place outside of government control, putting players at significant risk, as unlicensed sites do not follow Swedish gambling laws, do not prioritize player protection, and lack the safeguards offered by licensed operators. The fact that Sweden is back in a situation resembling the pre-reform era reflects poorly on political efforts so far.

One major issue with unlicensed gambling sites is that they aren’t bound by the same rules regarding deposit limits or responsible gambling requirements as licensed operators. These sites become safe havens for reckless gambling and criminal activity. Additionally, they don’t pay Swedish gambling taxes, meaning they don’t contribute to society in the way licensed companies do.

The rise in gambling on these sites is alarming. Consumers are left without the strong protections that licensed operators provide, and policymakers bear responsibility for allowing this trend to continue. While the Swedish Gambling Authority has received increased resources to combat unlicensed operators, it’s clear that more decisive action is needed.

Why is gambling on unlicensed sites still increasing? Part of the problem is that current legislation hasn’t kept up with industry developments. For example, the current Gambling Act does not prevent unlicensed operators from targeting Swedish players effectively. To counter this, we at Sper propose the following measures to curb unlicensed gambling and protect Swedish consumers:

1. Ban Unlicensed Operators from Accepting Swedish Players
   Currently, there is no general ban preventing unlicensed gambling companies from accepting bets from Swedish customers. The law needs to be amended to address this gap.
2. Investigate Options to Block Unlicensed Sites
   There is currently no way to block access to unlicensed websites. Previous government studies have shown that most EU countries have the ability to block unlicensed sites. This issue should be investigated further.
3. Strengthen Spelpaus and Increase Resources for the Support Line
   Many who seek help from support organizations are already self-excluded on Spelpaus (Sweden’s self-exclusion register) but continue to gamble. We propose that players who self-exclude on Spelpaus should be contacted within 24 hours and offered support. Increased funding for the support line would make these follow-ups possible.
4. Ban Payday Loans for Gambling
   The government has already proposed legislative changes to regulate payday loans. It is crucial that these proposals are implemented swiftly to reduce financial risks associated with gambling.
5. Establish a Loan-Stop Register
   We propose creating a loan-stop register for payday loans, similar to Spelpaus. This would complement Spelpaus by making it harder for individuals to finance their gambling with quick loans, reducing financial harm.

It’s clear that current policies have failed to meet the goal of 90% channelization. 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.

We in the gambling industry want a Swedish gambling market that is safer, healthier, and more secure. We’ve put forth measures to achieve this. Now, it’s time for the government to take responsibility, pick up the pace, and take further action.

Signed

• Hans Lord Skarplöth (ATG), Chairman, Sweden’s Gambling Industry Association
• Anders Årbrandt (Swedish Postcode Lottery), Vice Chairman, Sweden’s Gambling Industry Association
• Anna Johnson (Svenska Spel), Board Member, Sweden’s Gambling Industry Association
• Hans Sahlin (Folkspel), Board Member, Sweden’s Gambling Industry Association
• Mikael Lövgren (ComeOn), Board Member, Sweden’s Gambling Industry Association
• Jonatan Hjort (Million Lottery), Alternate, Sweden’s Gambling Industry Association
• Patrick Hämquist (Svebico), Alternate, Sweden’s Gambling Industry Association
• Maria Wennerberg Sedigh, CEO, Sweden’s Gambling Industry Association