Svenska Spel recommends risk classification alternative to ‘special moderation’ marketing

Svenska Spel CEO Patrik Hofbauer has warned of the potential consequences for the Swedish gambling industry should new proposals regarding limiting advertising come into effect.

The new proposals, which were presented by the Ministry of Finance, would see gambling advertising subject to ‘special moderation’ compared to the current ‘standard moderation’ requirements.

Hofbauer, pointing to the example of Swedish alcohol legislation, said that ‘special moderation’ would have a severe impact on the ability for gambling companies to advertise in the country.

‘Special moderation’ would limit opportunities to show emotive advertising and would also potentially impact commercial sports sponsorship deals with gambling companies.

Hofbauer explained how the legislation could cause three distinct knock-on effects for the industry, including sponsorship, an increase in black-market activity and declining local economies.

He said: “Gambling companies are the single largest sponsor of Swedish sports. We estimate the value of the gaming companies’ sports sponsorship at around SEK800m annually.

“The proposal would limit the possibility of sponsorship and have very significant consequences for the financing of sports.

“There will be less money for both elite sports and grassroots sports, which would be felt in people’s everyday lives,” he added.

On handing a potential advantage to the black market, Hofbauer noted: “The proposal entails a risk of increased gambling at unlicensed companies.

“The value of a Swedish gaming licence would probably decrease, which risks leading to an increase in unlicensed gaming.”

Speaking on his final point regarding an impact on local economies, Hofbauer mused: “Revenues from games and other agency activities are important to be able to keep local stores running. Limited opportunities to market games risk this important source of income for traders.”

Voicing his concern against the proposed change in legislation, Hofbauer detailed an alternative suggestion – the introduction of risk classification for different types of gambling.

Svenska Spel, which is a former monopoly betting and lottery operator in the country, suggested that scratchcards and betting games “involve a relatively low risk” when compared to “fast games” such as online casino.

“If the game advertising is to be regulated further, our starting point is that the restrictions must be adapted based on the risk that the game entails,” said Hofbauer.

“By risk-classifying different forms of gambling, the legislation can, if necessary, be tightened in a targeted and more effective manner,” he added.