Sweden: Videoslots warns restrictions will fuel black market

Sweden: Videoslots warns restrictions will fuel black market

Operator says restrictions and limits are not protecting players but putting them at greater risk.

Sweden.- Online casino operator Videoslots has warned that further restrictions in Sweden will not protect players but drive them to the black market market instead.

Last week, social security minister, Ardalan Shekarabi, proposed restrictions to limit online gambling during the Coronavirus pandemic, including weekly gambling deposit limits of SEK 5,000 (US$500), a SEK 100 cap on bonus offers and set time limits on online casino activity.

“The changes proposed by the Government will take even more players away from the protection of the licensing system,” Videoslots General Counsel, Ewout Wierda, said.

“Our player protection can help society cope with the current virus-related risks, but not if those players who need protection most choose black-market operators.

“Enforcement against black-market operators is needed but is not an alternative for the attractiveness of licensed operators.

“The Government has no evidence of the need for measures or their effect. Licensed operators on the other hand can show there is no new risk.

“Forced fixed limits have proven to be ineffective by academic experts and they are inconsistent with systems focusing on customers who are most at risk,” he added.

According to a Copenhagen Economics report, the Swedish online casino industry is already “exposed to fierce competition from unlicensed providers,” with 40 per cent of players having gambling on unlicensed casino sites.

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online gambling online gambling regulation regulation sweden