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The Swedish Trade Association for Online Gambling – today presents a comparative study between how the gambling markets are regulated in Sweden and Denmark. The report has been carried out by the independent law firm Nordic Legal. In addition to the comparative study, 19 recommendations are made to the Swedish government and the Swedish Gambling Authority (SGA).
The report authors have found that Denmark’s gambling regulations is more successful in meeting its country’s gambling policy goals, in that Denmark over time has had a higher and more stable channelisation, but that Denmark’s position also seems to be under threat recently.
The report states that Sweden is unlikely to reach its 90 percent target in terms of channelisation unless a larger reform takes place, and the recommendations presented in the report can be used to increase the channelling rates.
The report also states that channelisation is important and should not be neglected as a marker for a well-functioning gambling market, something that has been proposed by policymakers in Sweden and elsewhere as a response to the difficulty to reach previously decided high ambition channelisation goals.
The report authors believe that no repressive measures will alone solve the channelisation problem, neither implemented nor future, as long as the licensed gambling market is not allowed to offer a sufficiently attractive gambling offer. Repressive action can include measures such as ISP blocking and payment blocking. Attractive gambling offers may, for example, include a somewhat less rigid bonus and loyalty regulation in Sweden.
The report also points to different government and authority cultures in Sweden and Denmark. According to interviews of licensees in the report, Sweden’s gambling authority is characterized by a punitive culture and a culture of fear, while Denmark is stated to be dialogue-oriented in the relationship between authority and licensees. The escalation ladder of measures in Denmark when licensees violate rules is mentioned as one positive characteristic. This should be compared with Sweden, which is stated to instantly apply the harshest possible sanctions.
“We hope that the report will be a useful tool and encourage Sweden to find inspiration in several of the measures and approaches that have been so successfully implemented in Denmark. Some of them are strictly rule based, such as how loyalty programs are regulated. Some are more difficult to approach and of a cultural nature, but just as important, and are connected to the policymaker’s attitude to the industry it is supervising”, says Gustaf Hoffstedt, Secretary General of BOS.
“Hopefully, this report can inspire policymakers in Sweden to choose the path of regulation that strengthens the licensed gambling market and as a consequence strengthen consumer protection, as neighbouring Denmark has successfully proven is possible,” Gustaf Hoffstedt concludes.
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