BOS voices opposition to COVID-19 measures.
The Swedish Trade Association for Online Gaming, BOS, has voiced disapproval over the end-of-May regulations imposed by the government on online gaming activities. The association is worried that players might turn to unlawful websites due to these restrictions and accuses the government of favoring state-owned providers. How valid are these accusations?
BOS Demands Dialogue with the Government over Corona Restrictions
BOS is urging the Swedish government to engage in discussions over the Corona restrictions imposed by Social Insurance Minister Ardalan Shekarabi at the end of May. The new regulations involve stricter usage limits. The government explained that gambling customers during the Covid-19 outbreak are more likely to indulge in excessive gaming. However, the BOS cautions that these measures may severely damage Sweden's reformed gaming market and its licensees.
The latest restrictions replaced a more contentious draft from April, which faced widespread disapproval within the industry. Many CEOs of Swedish licensees signed a BOS petition to express their protests against these changes. Notable companies that spearheaded the campaign included Betsson, Kindred Group, LeoVegas, William Hill, and NetEnt. The BOS, accompanied by the Gaming Supervisory Authority Spelinspektionen, emphasized the potential strengthening of the black market.
The revised measures stipulate that horse and sports betting operate independently of a weekly deposit limit of 5,000 Swedish crowns (~ 482 euros). This restriction applies only to online casino games and slot machines. Time limits for playing must also be set, along with a bonus limit of 100 Swedish crowns.
The Perceived Favoring of State Operators
While the government operates under the assumption that different games involve varying levels of risk, the BOS contends that the measures advantage state operators, ATG and Svenska Spel, resulting in market distortion. While the state operators offer online casino titles, this is not a core product like lotteries and horse racing.
Moreover, the BOS believes that the adhesion to these measures could undermine channelization on Sweden's market. The primary reason for the new restrictions was that gambling enthusiasts would shift towards products like online slot machines during the pandemic. Yet, the BOS asserts that the Ministry of Finance has not provided any evidence to support this. Their own members have not observed such a trend.
BOS Relying on Scientific Evidence
A study released by the independent research company Copenhagen Economics indicated that players in Sweden, Norway, Finland, and Germany, engaged in less overall gaming, opting for alternative gaming forms during the Covid-19 outbreak. This study, the first of its kind to examine the impact of Corona on gaming behavior, was referenced by the BOS.
Furthermore, the research detailed the ramifications of deposit limits on online casinos. Based on sales data, consumer surveys, interviews, and international research, it confirmed a decline in the channeling rate from 75% to 52-63%. This amounts to almost half of the gambling bets ending up with unlicensed companies.
The BOS concluded that online gambling participation did not increase during the Corona period. BOS General Secretary Gustaf Hoffstedt further noted that online casino activities had stagnated, while sports betting was markedly decreasing. A previous study conducted in December 2019 similarly suggested Sweden's declining gambling participation.
The Right Regulations Based on Facts
In response to the criticism, the BOS presented a series of proposals to minimize the potential damage to the channeling. The association asserts that consumer protection is of utmost importance. They agree that the development of a responsible gaming market should continue, but emphasizes the need for a fact-based approach.
By adopting the BOS suggestions, the Ministry of Finance could introduce a set of regulations to safeguard consumer protection without damaging the channeling. On the contrary, the BOS-proposed measures would foster a secure market and enhance consumer protection. The Ministry of Finance is currently mulling over the data to make an informed decision.
rhetorical questions
Are the implemented measures irresponsible?
Why should the Swedish Gaming Inspectorate provide regular updates on the market situation?
Could an exemption for horse racing betting be considered reckless?
Read also:
- Remaining contenders down to two in DFB's struggle versus Brazil.
- Schalke's Transfer Assessment: A Season of Wastefulness
- Shocking development in the NBA!
- Law enforcement agencies in various metropolises plan expansive measures for May 1.
Source: www.onlinecasinosdeutschland.com
