the committee rejects stricter rules for gambling ads
The Riksdag’s culture committee has rejected a proposal to introduce stricter advertising rules for higher-risk gambling products, arguing that it was an attempt to introduce a gradual regulatory system “by the back door”.
The committee’s opinion came in Report on a the gambling reform bill aims to reduce damage and improve channeling.
Initially, the government had considered a ban on “high-risk” gambling ads between 6am and 9pm.
In the version of the law that the government published, however, it chose not to implement a ban. Instead, it said gambling ads should be subject to “adjusted moderation.”
The government determined that both channeling and media revenue could be adversely affected by a daytime ban, while many people at risk would continue to be exposed to ads.
The standard of adjusted moderation, it was noted, would not be the same as “special moderation”, which is the standard for alcohol and was proposed for the 2021 Games.
The adjusted moderation rule would mean that ads are subject to different levels of moderation depending on the type of game involved.
However, the bill did not provide details and the industry association Online Gaming Association (BOS) noted that the rule was extremely ambiguous.
Risk classification of backdoor gambling
However, the Culture Committee rejected the new standard.
It disagreed with the principle of setting different standards for different types of games, arguing that the rule was “an attempt to implement risk classification by the back door”.
This, it says, risks further eroding the regulated market for those actors who have a loose license, pay Swedish tax and maintain a high level of consumer protection and who, with an adjusted requirement, do not have the opportunity to market their products to a greater extent”.
The committee also believed that it was premature to make major changes to the marketing rules, as the market for licensed games is less than three years old.
“Furthermore, the committee believes that it is premature to implement changes in the field of marketing as practice has just been established,” it said.
The committee also believed that a risk classification should not be applied in a more direct way. It determined that there are too many factors at play for the risk of different gaming products to be viewed on anything other than a case-by-case basis.
“During the re-regulation of the gambling market, it was deemed difficult to divide the forms of gambling into more or less risky games in a long-term sustainable way and let this be a guide for the design of the regulation.” It said. “There is no reason to make another assessment now.”
“Risk factors also change over time and are affected, among other things, by how the supply on the gambling market looks. It will thus continue to always be necessary to make a risk assessment based on current knowledge and research in each individual case when drafting laws and regulations.”
B2B Supplier Licenses
Perhaps the most notable part of the government’s bill, however, is its requirement for B2B software providers to obtain licenses. The government aimed to use these licenses to improve channelization by preventing licensed providers from colluding with black market operators.
The committee said it agreed with the proposal to bring in B2B supplier licences.
“The Committee welcomes the Bill’s proposal that a software licensing requirement be introduced into the Gaming Act with the aim of excluding unlicensed gaming,” it said. “It is important to prevent unlicensed actors from operating on the Swedish market.”
Swedish election 2022
The report from the cultural committee is among the first major measures regarding gambling that the new Swedish legislator took after the 2022 election.
In the election, the center-left coalition led by the Social Democratic Party lost its majority and was replaced by a new right-wing coalition.
After the election, BOS Secretary General Gustaf Hoffstedt said he was hopeful the new government would be more friendly to the industry, especially on issues such as bonuses. Currently, Swedish operators are only allowed to offer players a bonus, which is limited to a value of SEK 100 and must only be granted upon registration.
What happens next for the Swedish gaming reform?
After the committee’s comments, the bill must now be considered by the legislature.
If it is approved and becomes law, the requirement for B2B Supplier Licenses will come into effect on July 1, 2023. Although the bill is not yet law, the regulatory authority Spelinspektionen is already taking steps to prepare for the new requirement and plans to open license applications on March 1.
The regulator is also set to hold an information session on the new law next month.
Other parts of the bill that require simpler changes come into force on January 1.