BOS Oppose Swedish Government Gambling Advertising Proposal

The Swedish government proposed that, because of the addiction risks posed by gambling, advertising of the industry should have the same regulation requirements as alcohol.

Current regulation for the industry’s marketing is under the basis of a requirement for moderation and Sweden’s Ministry of Finance proposes that it needs to change to “special moderation”. The proposal, presented in June 2021, suggests that the change should come into effect from June 2022 and it opened the floor for consultation until 14 October 2021.

 BOS Hits Back

Gustaf Hoffstedt, Secretary General of Branscheforenigen för Onlinespel (BOS), The Swedish Trade Association for Online Gambling, submitted a response via consultation. In this, he notes concern from BOS and states that the online regulatory body rejects the government's proposal. The Trade Association believes that this move will leave Swedes vulnerable.

Hoffstedt argues that the regulated and licensed online gambling sector channels players to their sites via proper advertising. This is an advantage the licensed sector will lose with the new advertising proposal and he believes it inherently goes against the Swedish Consumer Protection Act’s duty of care.

As it stands, a quarter of the industry’s turnover already flows to unregulated and unlicensed providers, which is alarming and will only increase if players are no longer channelled toward Swedish-licensed online casinos.

Gustaf Hoffstedt noted in his consultation:

“It is the duty of care that constitutes the core of the Swedish consumer protection in the gaming market. Properly used - and properly developed - it can be of great benefit to gaming consumers, and especially to the people who should not gamble for money at all.”

The lack of advertising from Swedish-licensed casinos will drive players to illegal sites where it is no longer secure and players do not have the advantage of the CPA.

 Journalism and Sport Will Suffer

The response by BOS explains their concern for the government's lack of foresight in the matter and points out that the consequences of this change will affect industries outside of the online gambling world too.

Editorial journalism and Swedish sports stand to lose much if the government puts the restrictions in place. Online casino providers with Swedish licenses use traditional media for advertising, profiting both the media and gaming companies. Hoffstedt continued:

“It cannot be the intention of the Swedish people to deny Swedish independent quality journalism such a decisive source of income, without offering a financial compensation that fully covers the losses. The same applies to the sports movement, which, thanks to sponsorship agreements, receives multi-million sums from gaming companies, in some cases multi-billion sums.”

Swedish sport enjoys big sponsorships from igaming companies, like Svenska Spel that sponsors Sweden’s national hockey leagues.

 Regulator in Agreement with Government

The Swedish regulator, Spelinspektionen, agrees with the government's proposal as they believe it will aid in promoting responsible gambling.

In a statement, the regulatory body made in April this year, they affirmed the logic behind regulating games on the same basis as alcohol because of the risks associated with the products.

This proposition follows the tight controls put in place during 2020, where players saw deposit caps and bonus restrictions. The Gambling Authority’s intention is that these restrictions are only temporary changes to the country’s online gambling laws, in order to circumvent problem gambling during COVID-19.