Gustaf Hoffstedt, Director General of the Swedish Trade Association for Online Gambling (BOS), has given a dire warning about the country’s online gambling business. Hoffstedt voiced serious concern about the current state of affairs in a recent statement, noting failed government efforts to shift users to regulated platforms. The troubles of the sector are mostly linked to overly restrictive policies that have alienated clients and pushed them to unregulated alternatives.
Hoffstedt emphasized the gravity of the situation by citing low channelization rates in Sweden’s online gaming business. Only 77% of the market is presently channeled through regulated channels, according to a survey by SKOP.SE. This falls well short of the government’s goal of achieving at least 90% channelization. Immediate action is required to reverse this declining trend.
The gaming community has expressed considerable opposition to the implementation of stringent laws such as the de facto ban on bonuses and the prohibition of lower division football betting. Hoffstedt indicated that as a result, many players have switched to unregulated platforms that avoid taxes and provide inadequate player protections. Because unlicensed companies do not provide the required controls against gaming hazards, this movement poses a significant risk.
Hoffstedt argued that in order to properly address the issues confronting the online gaming business, the government must adopt a new mindset. Instead than imposing new restrictions on licensed businesses, the authorities should concentrate on combatting the illegal market. Increasing measures to tighten down on unlicensed operators would help keep more players away from unauthorized sites. Strict restrictions on licensed enterprises’ capacity to keep clients within the regulated market will only worsen the situation.
Hoffstedt emphasized the industry’s unwavering commitment to increasing channelization rates and desire to work with the government to achieve this aim. Licenced enterprises are willing to collaborate if the government takes a more proactive approach to tackling the unregulated sector. Sweden may seek to increase channelization and protect consumers by promoting a cooperative atmosphere in which licensed operators are empowered rather than burdened.
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