Key Moments:
- Svenska Spel and ATG have called for a complete prohibition of bonuses in Sweden’s licensed gambling sector.
- BOS asserted that such a restriction would strengthen unlicensed gambling operators at the expense of consumer protection.
- ATG’s data indicated that unlicensed online casino gambling may now represent just over 40 percent of the market’s turnover.
Swedish Gambling Market Leaders Advocate for Tighter Bonus Restrictions
On November 7, the chief executives of Svenska Spel and ATG authored an opinion piece in Svenska Dagbladet, one of Sweden’s top newspapers, in which they urged the government to enforce a total ban on bonuses within the country’s licensed gambling market.
In response, BOS – the Swedish Trade Association for Online Gambling – replied in the same publication, arguing that such a measure would directly favor the commercial interests of Svenska Spel and ATG, while undermining the protection offered to Swedish consumers. BOS contends that eliminating all bonuses could prompt players to shift more quickly from regulated operators to unlicensed gambling venues.
BOS Cautions Against the Risk to Consumer Protection
Gustaf Hoffstedt, Secretary General of BOS, stated: “The elephant in the room for consumer protection is that consumers are to such a large extent absent from the legally licensed part of the gambling market. Instead, they have chosen the unregulated unlicensed market to an alarming extent, partly because of the very generous bonus systems offered there. We should not have that kind of excesses with sky-high bonuses in the licensed market, but to completely ban any form of moderate bonus offer is to give up the fight of defending the licensed gambling market and its consumer protection.”
In his op-ed, Hoffstedt challenges the notion that removing bonuses for new customers will resolve youth gambling issues, pointing to other factors such as the influence of skins and loot boxes in youth gaming as a significant contributor to problem gambling among young players. He highlights that, according to an ATG study, unlicensed online casino activity could now make up over 40 percent of market turnover, significantly reducing the reach of Swedish consumer protection.
The Debate Over Bonuses and Market Share
Hoffstedt argues that most high-volume players are among those who use unlicensed operators, and that a complete ban on bonuses would likely push even more players away from the regulated sector. He emphasizes that the absence of loyalty programs for existing customers is already cited by consumers as a reason for migrating to unlicensed options.
He further points out that competitors to Svenska Spel and ATG, who started with no prior customer base when the market was re-regulated in 2019, would be disadvantaged if bonuses for new customers were also eliminated. Hoffstedt suggests that, while the established operators are defending their own interests, these policies risk rapidly shrinking the share of legally licensed gambling in Sweden, citing the Netherlands as a comparable reference point.
Industry Dynamics: Market Protection or Market Restriction?
Hoffstedt concludes that Svenska Spel and ATG, given their influence and history, could instead foster unity within the sector and work towards sustainable regulation. However, he believes their current push for bonus restrictions prioritizes short-term competitive advantage over the broader benefit of Swedish society and robust consumer protections.
| Company | Position | Market Implication |
|---|---|---|
| Svenska Spel | Proposed a complete bonus ban | Advantaged market share within licensed operators; potential reduction in consumer choice |
| ATG | Proposed a complete bonus ban | Aligned with Svenska Spel; referenced study on unlicensed market share |
| BOS | Opposed total bonus ban | Warned of increased migration to unlicensed operators and greater consumer risk |
Further Reading
- Svenska Spel and ATG’s op-ed (Svenska Dagbladet)
- BOS and Gustaf Hoffstedt’s response (Svenska Dagbladet)
- Author
Daniel Williams
