Swedish market "like the Wild West" says gaming chief exec
Play'n GO CEO Johan Tornqvist calls for regulatory process to be sped-up amid advertising blitz from unlicensed operators
Sweden needs to fast-track its ongoing regulatory process with current market conditions “like the Wild West” and dangerous for consumers, the CEO of Swedish supplier Play’n GO has said.
Speaking at a gaming summit in Stockholm, Johan Tornqvist said the country can’t afford to wait until after the general election in 2018 to implement new laws, because “rogue operators” are bombarding consumers with adverts at levels that wouldn’t be allowed in mature markets like the UK or Denmark.
“This blind rush to increase market share ahead of the implementation of legislation is dangerous for the consumer, which underlines the need to bring in a regulatory framework as soon as possible,” Tornqvist said.
“Having waited for far too long to regulate, it’s vitally important that whatever framework is put in place is a very bold document that ensures Sweden is an attractive place for the gaming industry to do business.
“But to ensure we make the most of our opportunity we need well thought out legislation that is implemented before less scrupulous operators have got their teeth into players,” he added.
Sweden’s Ministry of Finance announced an inquiry in September to examine the effects of a potential re-regulation of the country’s gambling market. The inquiry is currently ongoing, with the group due to report by the end of March 2017.
A source involved in the process told EGR the inquiry itself could not be sped-up, but that it was imperative the Swedish government began implementing the regulation immediately after the report was delivered.
Swedish operator Unibet agreed there was a “need for speed” but the company’s Nordic public affairs manager, Peter Alling expressed doubts about the likelihood of that happening, claiming the whole licensing process had been “continuously mismanaged to increase market shares for AB Svenska Spel and ATG”.
Similarly, Gustaf Hoffstedt, the secretary general of Sweden’s Association of Online Gambling Operators, refuted the “advert blitz” claims.
“The state owned gambling operator Svenska Spel is the number one advert buyer in Sweden,” he said. “If there is any bombardment it comes from the state of Sweden.”
In 2015 the Swedish online market was worth around SEK8bn (?650m), with state-run brands accounting for 40% of that. Unlicensed platforms accounted for 60% of the online market, with a growth rate of 6%, according to the regulator.
Last week, the chairwoman of the state-owned gaming operator Svenska Spel stepped down in protest of the government’s plans to open up the gaming market.