Kindred Group issues damning official response to proposed Sweden limits
Stockholm-listed operator suggests firms will be “forced to choose which rules to violate” if 1 June deadline remains
Kindred Group has suggested Swedish-licensed operators will be forced to choose which rules to violate if the country’s new deposit and bonus limits are implemented on 1 June.
The Stockholm-listed operator has published a damning official response to government proposals, which could cap weekly player deposits at SEK5,000 (£400) and bonuses at just SEK100 (£8).
Swedish-facing firms had until 7 May to respond to the mooted regulation, which was first unveiled by Social Security Minister Ardalan Shekarabi on 23 April to protect players against online harm during the Covid-19 lockdown.
Kindred Group highlighted seven points of contention in its official rebuttal, insisting the required technical system tweaks to cap deposits and bonuses would not be possible by the 1 June deadline.
“Since the government has not understood and taken into account the overall regulatory framework or conducted any impact assessment on the need for technical changes, licence holders cannot change technical systems in the manner prescribed if they only have until 1 June to implement these changes,” said the operator.
“This forces licensees to choose which rules to violate. Not all rules can be followed if the proposal is implemented.”
The operator further argued there is no evidence of an increase in problem gambling due to coronavirus as the overall gambling industry has experienced a decrease in gambling activity.
“We are left to wonder on what evidence the minister has based his alarmist hypothesis,” reads the letter.
Kindred Group also requested the Swedish Gambling Authority (SGA) be allowed to carry out its regulatory duties without government interference.
“Give the Swedish Gambling Authority space to carry out its mission,” wrote the operator. “The Gambling Authority should focus on channelling, as that is a basic prerequisite for a well-functioning licensing process.
“Therefore, it is important the government demonstrates greater confidence in the Gambling Authority and give the agency more space to carry out its work.”
Kindred Group, which last month reported an 11% uptick in Q1 revenue, has recommended four measures to the government to protect the integrity of the licensed market and vulnerable players.
The four measures are:
- Quickly implement B2B licences for suppliers and customer acquisition companies
- Consider further regulation of the instant loans industry
- Carry out powerful public awareness campaigns
- Clarify the SGA’s mission by requesting player data from gambling companies to facilitate fact-based assessments
In the response, Kindred Group CEO Henrik Tjärnström reiterated the industry’s view that further limits will drive players towards the black market and reduce the country’s channelisation rate.
Kindred Group CEO Henrik Tjärnström
“We are extremely concerned that the Swedish gambling market continues to shrink, a trend confirmed by both the Swedish Agency for Public Management and research firm Copenhagen Economics,” said Tjärnström.
“What the government is now proposing will result in a continued decline in the gambling market and an erosion of consumer protections.
“We need to be careful about introducing regulations that move customers away from regulated gambling companies towards unlicensed sites where Swedish authorities have no ability whatsoever of ensuring a high consumer protection.
“This is a negative development for customers, for the licensed gambling companies, and for society as a whole,” he added.