An open letter from the country's gambling trade association has been sent to the Swedish Minister of Finance urging easing restrictions on the gambling market. The minister's plans have been called unrealistic, and stakeholders have said that these intentions are nothing more than playing into the hands of unlicensed gambling operators. A new report indicates that imposing limits on online casino deposits would divert roughly half of bets to unlicensed operators.

“The entire Swedish gambling industry is in the grip of uncertainty, with many customers turning away from licensed companies and moving instead to unlicensed operators. If we don't cooperate and implement long-term, research-based measures, we risk turning back the clock to what the market looked like before the overshoot."

Independent research firm Copenhagen Economics has published a report on the possible impact of the limit on deposits in online casinos. Based on turnover data, consumer surveys, interviews and international studies, the authors of the report concluded that the limits would reduce the share of licensed operators from 75% to 52-63%.

"We share the government's view that that the protection of the players is paramount. We agree that this work must continue and that together we can create a sustainable gambling market with strong consumer protection, but the world must be based on facts.”

Open letter signed by top executivesBetsson, Kindred, LeoVegas, NetEnt,William Hill, ComeOn,Videoslots, Hero Gaming, SuprNation and General Secretary of the Gaming Trade Association.

The authors of the open letter suggested alternative solutions:

• raise player awareness of restriction and self-exclusion;
• expand licensing requirements;
• allow authorities to use gambling company data;
• expand the mandate of the Swedish Gambling Authority.

At the end of April, the Swedish government decided to limit deposits in online casinos. Players will be able to transfer a maximum of $495 per week. The government justified this decision by the fact that during the Covid-19 pandemic, residents of the country began to turn to the gambling entertainment market more often. However, no research has been done in this area.