Sweden’s Bonus Ban Proposal Sparks Intense Debate Between State and Private Gambling Operators

Key Moments:

  • Svenska Spel and ATG have advocated for a full ban on online gambling bonuses in Sweden.
  • BOS has voiced concerns that prohibiting bonuses could favor monopolies and boost unlicensed gambling.
  • Sweden is concurrently updating its Gambling Act to target illegal operators and enhance enforcement.

Calls for Comprehensive Bonus Ban

In Sweden, discussions have intensified over whether to prohibit bonuses within the online gambling sector. Moreover, the debate has gained momentum in recent months. Svenska Spel and ATG, two operators with state affiliations, publicly backed a total ban on licensed operators offering any form of online bonuses. Additionally, they emphasized that this measure should apply to the entire market. Their position was made clear in a joint opinion piece authored by Anna Johnson from Svenska Spel and Hasse Lord Skarplöth from ATG. The piece argued that bonuses may encourage problem gambling. It also suggested that such incentives could disproportionately appeal to younger players.

They cited statistics from the Swedish Association for Alcohol and Drug Education. According to the data, the percentage of boys in their second year of high school who had gambled in the past five years rose from 27 percent to 43 percent. As a result, the proposed move would eliminate all bonus incentives. These incentives currently serve as recruitment tools for licensed brands.

Industry Pushback and Debate Over Causes

The Swedish Trade Association for Online Gambling (BOS), represented by Secretary General Gustaf Hoffstedt, challenged the idea that adult-focused welcome bonuses directly cause increased gambling among youth. However, he acknowledged that youth gambling is a growing problem. Hoffstedt agreed that youth gambling is a growing concern, stating:

“We believe that everyone agrees and is concerned that gambling among young people under the age of 18 is a growing problem.”

He continued, “But to claim that this is due to the welcome bonuses that are currently offered to adult players, without mentioning how today’s young people learn to play for money through so-called skins and loot boxes in their favourite games, is not serious.” He maintained that banning bonuses would not tackle the root causes of youth gambling or underage exposure.

Concerns for Market Balance and Competition

BOS further warned that such a ban could shrink the licensed gambling sector, providing an advantage to legacy monopolies like Svenska Spel and ATG. Hoffstedt highlighted the fact that private operators, lacking historical databases of customers, rely on bonuses as vital recruitment mechanisms. He argued:

“The fact that their competitors, who in many cases start with zero customers on their data base, are prohibited from offering a bonus when a new customer is recruited is of course tempting for the old monopolists.”

He also cautioned that continued regulatory tightening may damage the broader licensed market, asserting that existing major incumbents risk undermining the ecosystem rather than collaborating with other licensed entities.

Player Migration to Unlicensed Operators

Industry leaders voiced additional concern that strict restrictions on bonuses could prompt players to migrate to offshore websites, where such incentives remain available and regulatory protections are absent. Hoffstedt stated:

“A high proportion of legally licensed gambling is achieved through striking a balance between consumer protection and gambling pleasure. The gambling consumers must themselves want to be in the licensed gambling market. If this is not achieved, the entire system will collapse.”

He continued, “Now Johnson and Lord Skarplöth also want to remove the possibility of giving a bonus to a new gambling customer. If they get their way, we probably haven’t seen the bottom yet in how low the proportion of legally licensed gambling can fall.” Hoffstedt warned that eliminating bonus offers could further reduce the number of players choosing licensed operators.

Regulatory Update and Ongoing Reform

Sweden is currently in the midst of implementing broad changes to its Gambling Act, aimed at improving enforcement against unlicensed operators. In September, Marcus Isgren submitted a report to the Ministry of Finance, proposing enhancements to the regulatory framework. Although these reforms are expected to fill certain gaps, issues persist regarding consumer protection, competitive fairness, and the attraction of players to offshore sites.

Market Stakeholder Perspectives

The debate over bonus restrictions underscores the complexities Swedish regulators and industry stakeholders face as they attempt to balance market integrity, player protection, and the dangers of channeling consumers to unregulated markets. The resolution of this discussion will help define the trajectory of Sweden’s gambling sector as it approaches the next phase of regulation.

OperatorPosition on Bonus BanMain Argument
Svenska Spel & ATGSupportBonuses may increase youth gambling and should be banned for all licensed operators.
BOS (Gustaf Hoffstedt)OpposeBanning bonuses disadvantages private operators and may push players to the black market.
  • Author

Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
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