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Svenska Spel vs BOS: the war over the rules of the game

While Svenska Spel, the incumbent public operator, is calling for tougher rules to provide a better framework for the sector, BOS, the association representing private players, is denouncing a move that could undermine the legal market and give the State monopoly an advantage. 

When Svenska Spel takes the initiative

Svenska Spel, the Swedish state-owned gambling company, recently submitted a 42-page report proposing 18 measures to strengthen the regulation of the Swedish online gambling market. The proposals have three main objectives: to protect young people, to combat illegal casinos and to introduce a risk classification system for different types of gambling.

Among the data cited is that the channelling rate (i.e. the proportion of online games played on regulated platforms) is 85%, below the government target of 90%. Svenska Spel is therefore calling for stricter rules to bring this rate closer to the target.

The BOS outcry: why these proposals are worrying

The BOS union, which brings together legal online operators, was quick to respond. Gustaf Hoffstedt, the union’s general secretary, denounced several risks associated with the reforms proposed by Svenska Spel. He believes that some of the measures could weaken rather than strengthen the legal market. Among the concerns raised:

The system of classifying games according to risk would weigh particularly heavily on online casinos, which are already under heavy competition from illegal platforms.

Restrictions on marketing or advertising for online casinos would favour Svenska Spel, which has a monopoly on the lottery but also operates in the competitive iGaming sector. By restricting competitors’ advertising, Svenska Spel could continue to promote its casino business through its lottery products.

There is concern that the proposed measures will only intensify the loss to unregulated platforms, because if the regulated market becomes too restrictive, some players could switch to illegal gambling. 

The issues of channelling and protection

The concept of channelling is central to this debate. The Swedish government had set itself the target of having 90% of online gambling carried out by licensed operators. However, recent figures (85%) indicate that this target has been set back or at least slowed down.

This phenomenon has implications: fewer players on legal platforms means less protection for players, greater risks of compulsive gambling, scams and money laundering. BOS insists that any regulation must be designed to preserve the attractiveness of the legal market, so that it remains competitive with the illegal market.

The confrontation between Svenska Spel and BOS embodies a classic but crucial debate: how to effectively regulate a gambling market to protect citizens, while maintaining a viable economic environment for legal operators? Svenska Spel’s proposals may have good objectives, but BOS warns of possible perverse effects, notably the loss of market share to illegal gambling and the indirect reinforcement of Svenska Spel’s monopoly. The challenge for Sweden will be to find a middle way that respects the principles of fairness and fair competition, while meeting the requirements of public health and consumer protection.

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At the heart of the Gambling Club is our dedicated journalist, Maxime (32), whose passion for journalism goes beyond simply reporting facts. With a keen eye for detail and an insatiable curiosity, Maxime strives to uncover the stories that matter, that shape our communities, and that impact the world around us.

With years of experience in the gambling industry, ranging from local news reporting to international investigations, Maxime brings a deep understanding of the complexities of today’s news landscape.

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