In response to a sharp rise in problem gambling, Sweden imposed government restrictions in July on deposit and bonus limits. As a result, Swedish online casinos saw a rapid decline in sales of 30 percent.
Sweden’s government introduced a deposit limit of SEK5,000 (US$564) per week on July 2, in addition to a limit of SEK100 on bonus offers. The limits came at a price for many gaming companies, especially the deposit limits, resulting in customers leaving the licensing system.
ComeOn Group saw sales drop from SEK118 to SEK83 between June and August. Likewise, Spooniker experienced a turnover decrease from SEK101 million to SEK72 million, according to Gambling Insider.
On the other hand, sports betting companies did better thanks to a return of equestrian and football events after a shutdown in March from the Covid-19 pandemic.
In other Scandinavian News, the Norwegian Industry Association for Online Gaming, known as Norsk Bransjeforening for Onlinespill/NBO, has asked for changes to the proposed new gambling legislation. The bill proposes to unify the existing Lottery Act, Gambling Act and Totalisator Act and maintain Norsk Tipping and Norsk Rikstoto’s monopolies.
In its submission, the NBO said channeling rates are currently less than 50 percent, with the majority of Norwegian players not protected by domestic regulations, resulting in problem gambling cases more than doubling between 2013 and 2019, according to iGaming Business.
NBO advocates a tax rate of 15 percent which it says would result in an expected channeling rate of more than 95 percent. This would also generate additional tax revenues of NOK 1.2 billion (US$131 million) which can be distributed in the same way as Norsk Tipping’s profits.
Licenses should be available to companies that meet a variety of criteria particularly related to responsible gaming, and a self-exclusion tool should be introduced that covers all operators. Under the proposal, all licensees must also be required to account for customers’ available funds, both to detect money laundering and to prevent players using credit to fund gambling, and from playing beyond their means.
“Through such a re-regulated licensing model, the Norwegian authorities will ensure a much higher degree of channeling for gambling in Norway,” said NBO secretary general Carl Fredrik Stenstrøm. “This in turn will provide far better protection for vulnerable players and generate increased government revenue.”
The NBO cited success in Denmark and Sweden, both of which have opened up their markets to private gaming operators.
“In Denmark, they introduced their license model in 2012. With a tax rate of 20 percent, they have reached a channeling rate of 91 percent,” the NBO said.
Norsk Tipping and Norsk Rikstoto hold monopolies in Norway now, a situation which presents a bigger risk of problem gaming. The revised act would make these operators adhere to strict public control and other requirements set out in their licenses. Non-profit organizations would also be able to offer gambling games with low turnover and prizes of small value.
