Svenska Spel’s call for increased consumer protections in online gaming has been dismissed by industry association BOS as being counterproductive and self-serving.
Last week’s proposal from the Swedish state-owned gaming operator included calls for tighter spending limits and a ban on direct marketing to people under the age of 25, as well as a broader marketing ban on online games deemed to be high-risk.
In its response to Svenska Spel’s proposal, Swedish online gaming industry association BOS warned of the risk of driving players to unlicensed sites through overly restrictive regulations.
“If Svenska Spel’s proposal were to go through, even greater market share awaits unlicensed and illegal online casinos,” said BOS secretary general Gustaf Hoffstedt.
“It is a natural consequence if the legal licensed gaming companies are prevented from marketing themselves and their products. The proposal that Svenska Spel dresses up in the name of consumer protection would therefore, on the contrary, harm consumer protection, as we know that a transition from licensed to unlicensed gaming entails an increased risk of problem gambling.”
Hoffstedt also questioned Svenska Spel’s motives, noting that “marketing restrictions, or even advertising bans, for online casinos would benefit Svenska Spel commercially”.
“This is because the company sells both lottery tickets on the monopoly market and online casinos on the competitive market, under the same brand,” says Hoffstedt. “A ban on advertising for online casinos would mean an enormous advantage for the monopolist Svenska Spel, which then, as the only player in the Swedish gaming market, can indirectly continue to advertise online casinos via its lottery products.”