Swedish Consumer Agency receives 200 complaints about online gambling ads
Twelve companies targeted by regulator over alleged marketing failures
The Swedish Consumer Agency (KO) has received over 200 complaints about the marketing practices of licensed egaming companies since the market opened on 1 January, the regulator has confirmed.
Three lawyers are working exclusively to review all complaints, with twelve companies targeted by regulators over failures to stop marketing to players who have chosen to self-exclude via the spelpaus.se platform.
KO has also identified marketing materials which said consumers do not need to register to gamble online, despite laws in Sweden prohibiting this practice. Companies currently under investigation include 888 Sweden, Hero Gaming, Genesis Global, Cherry AB subsidiary Faster Ltd and Skill On-Net Limited.
Elin Häggeborn a lawyer working for the Swedish Consumer Agency told Dagens Media that KO had not ruled out the use of financial penalties, legal action and potentially a ban on advertising by gambling companies.
“First and foremost, we want to have some kind of response from them then we have to take a position on the answer,” Häggeborn added.
Two members of the Swedish Industry Association for Online Games (BOS), Spooniker Ltd and Mandalorian Technologies Ltd have also been investigated by the SCA.
Gustaf Hoffstedt, BOS secretary general, welcomed the investigations by KO, saying it will lead to greater specificity on what moderation in marketing might mean.
Speaking to EGR, Hoffstedt said: “The word ‘moderate’ is written in the law, but there are few or none definitions from the legislator and the regulator what it really means. Hopefully this will give us at least an indication of the definition of the word.”
In a recent meeting with licensed operators, Swedish Minister for Civil Affairs, Ardalan Sherakabi said operators would be given until 31 March to reduce their so-called “aggressive and excessive” advertising, adding that the government would introduce curbs if no progress was made.
These sentiments were echoed by Hoffstedt, who said the volume of gambling advertising is “massive” in Sweden and that it has inadvertently led to a “marketing fatigue”.
Addressing the required changes, Hoffstedt said BOS had encouraged members to diversify their marketing away from cable TV and commercial radio in favor of sponsorships, Facebook and Google.
“We have also encouraged them to market their brand rather than bonuses and jackpots,” Hoffstedt said.