BOS rails against Swedish government U-turn on deposit limits

Swedish trade association BOS has attacked proposals from the Swedish government to extend temporary Covid-19 deposit limits to July 2021 as a “double mistake” that will cost the country’s online gambling market dearly in the long term. Reacting to the letter from Sweden’s Ministry of Finance, BOS CEO Gustaf Hoffstedt rubbished “erroneous” claims by the Swedish government that online casino gaming levels would increase during the pandemic. “There is nothing as permanent as a political promise of something temporary,” Hoffstedt said. “The temporary restrictions introduced this summer were justified by an alleged increase in online casinos. That did not turn out to be the case. “Online casinos stood still and sports betting decreased dramatically due to cancelled matches. Instead, it was games on horses that increased dramatically,” he added. The BOS CEO has previously attacked the decision to leave out betting on horseracing from the scope of the restrictions, suggesting that the government was looking after its own interests as it is represented on the board of ATG. The Swedish government launched a consultation on extending the measures earlier today, with a deadline for responses set for 23 November. “It is unfortunately only to state that the government is now making a double mistake which it made with the same erroneous claims about increased online casino gambling by extending the restrictions,” Hoffstedt claimed. BOS highlighted two potential consequences of extending the temporary restrictions into 2021. Firstly that high-spending players would inevitably switch between operators to avoid breaching the deposit limit threshold, something which would potentially jeopardise screening of problem gamblers. Secondly, the trade association suggested those at-risk players will leave the licensed market in favour of its unlicensed counterpart, which operates without consumer protection standards. “Even before the first restrictions were introduced this summer, the leakage from the Swedish licensing system was 25% for online casinos,” Hoffstedt said. “What the leak is today and what will happen to the extended restriction is a scary thought. “The government throws the Swedish gaming consumers out of the licensing system into the wolves’ den where consumer protection is zero,” Hoffstedt concluded. BOS has previously suggested that these restrictions would reduce the channelisation rates for online casino players to licensed operators to as little as 60%.