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Sweden’s Gambling Regulation Could Learn from Denmark’s Success

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The Swedish Trade Association for Online Gambling (BOS) has scrutinized the gambling markets in the Nordics, drawing a comparison specifically between Sweden and Denmark. The findings suggest that Sweden could benefit from adopting certain strategies employed by Denmark to achieve a more stable and higher channelization rate.

Denmark’s gambling market serves as an exemplary model due to its success in maintaining a robust channelization rate, a metric that gauges the proportion of gambling activities performed in regulated versus unregulated markets. The BOS has prepared recommendations for Spelinspektionen, the Swedish Gambling Authority, outlining strategies that could potentially enhance Sweden’s regulatory framework.

In Sweden, the concept of channelization, which is crucial for ensuring that gambling activities are conducted within the legal framework, has been under scrutiny. The current channelization rate in Sweden has been struggling to meet the 90% target, a situation BOS finds concerning. The association has thus proposed an 18-point plan aimed at invigorating the regulated market and attracting players who might otherwise engage with offshore operators due to limited legal alternatives.

The BOS report emphasizes the importance of avoiding overly restrictive measures such as Internet Service Providers (ISPs) blocks or payment blocking, which are often resource-intensive and yield minimal results. These methods are seen as ineffective because they do not address the core issue: players opting for offshore gambling are not doing so out of ignorance but due to dissatisfaction with onshore offerings.

A shift in regulatory focus is advocated by BOS, suggesting that Sweden’s gambling authority should prioritize dialogue over punitive measures. This means engaging with the industry to understand and address the underlying challenges, rather than imposing strict penalties. “Regulation shaped by dialogue, rather than punishment, can lead to more meaningful changes,” they argue, suggesting that such an approach could bridge some of the regulatory gaps currently evident.

Hoffstedt highlighted that regulatory measures in Sweden often rely heavily on rules rather than understanding the cultural and attitudinal nuances of the market. For instance, loyalty programs are subject to strict rules that may not align with the needs of operators or players. Moreover, the broader regulatory attitude towards the industry is often perceived as adversarial rather than collaborative. This could be a significant barrier to progress, and the BOS encourages lawmakers to revisit and refine these regulatory stances.

The report from BOS also stresses the need for a balanced approach to regulation, one that considers both the industry’s needs and the well-being of consumers. While protecting players from harm is paramount, excessive restrictions could drive them towards unregulated markets, undermining the very purpose of regulation.

From another perspective, some stakeholders argue that the Swedish market requires rigorous oversight to prevent gambling addiction and ensure consumer protection. They claim that the stringent measures, although challenging, are necessary to maintain the societal balance between entertainment and responsible gambling. However, BOS contends that Denmark’s model proves effective consumer protection can coexist with a thriving, channelized market.

The discussion on how to refine Sweden’s gambling regulations is ongoing, and the insights drawn from Denmark’s successful framework could be pivotal. By adopting a more collaborative approach and focusing on effective communication with stakeholders, Sweden might be able to enhance its channelization rate, ensuring that more gambling activities are performed within its regulated environment. This would not only align with financial objectives but also serve the greater purpose of safeguarding players’ interests.

The findings from the BOS report could potentially reshape the discourse around gambling regulation in Sweden, encouraging a shift towards more innovative and effective strategies. As the industry continues to evolve, learning from the successes and failures of neighboring markets like Denmark will be crucial in crafting a robust regulatory environment that benefits all parties involved.