Sweden’s proposed ban on online casino bonuses has ignited a heated debate among regulators, industry experts, and operators. It imposes a bonus ban on all legitimately operating gambling companies, including online casinos and sportsbooks, to reduce the appeal of gaming sites to younger players and address long-term responsible gambling concerns.
However, there might be a bigger, more important problem on the horizon. As noted by bedrageri.info, one of Sweden’s leading casino affiliate platforms focused on player security and licensed operators, the current debate risks overlooking the core issue: consumer protection only works when players actively choose the legal market. With years of expertise in monitoring regulatory developments and identifying unsafe, unlicensed sites, bedrageri.info stresses that a blanket bonus ban may unintentionally weaken channelisation and strengthen the very black-market regulators are trying to combat.
Sweden’s gambling industry was historically regulated by a state-run monopoly, but the 2019 Gambling Act allowed private operators to enter the market. The law was designed to promote safer and responsible gaming by combating illegal activities, which resulted in a rapid growth of the gambling industry.
A year later, the Swedish government accepted a bonus ban policy by applying strict restrictions (licensed operators effectively can’t use bonuses as a marketing tool beyond a one-off offer) with the intention of reducing gambling addiction, and there is a compelling reason for that. Research has shown that bonuses, particularly large initial offers, can encourage new and inexperienced players to deposit and wager more than they initially intended, leading to problematic gambling behaviours.
The Swedish regulator Spelinspektionen has argued that bonuses were being used as a tool by bigger operators to create unfair competition. For instance, larger sites offering the most generous bonuses can overshadow smaller, more responsible operators, making it difficult for them to compete fairly.
Industry experts warn that banning bonuses could also push players towards illegal gambling platforms. According to research from the Swedish Gambling Association, up to 30% of Swedish players are still accessing unlicensed online casinos, primarily driven by the allure of more attractive bonuses and promotions. In a regulated environment where these offers are no longer available, the same players may turn to unlicensed and offshore sites to satisfy their desire for big bonuses.
Gustaf Hoffstedt, Secretary General of BOS, the Swedish Trade Association for Online Gambling said: “The elephant in the room for consumer protection is that consumers are absent from the legal, licensed part of the gambling market. Instead, they have, to an extraordinarily high extent, chosen the unregulated, unlicensed market, partly because of the very generous bonus systems offered there.
We should not have those kinds of excesses with sky-high bonuses on the licensed market, but to completely ban every form of moderate bonus is to bind a rod for one’s own back and to give up the fight to defend the licensed market.”
While the bonus ban may have good intentions, a more balanced approach could be the right way forward. Instead of an outright ban on all bonuses, a specific regulatory framework is needed. It should focus on transparent bonus policies, for example, by introducing lower wagering rates on bonus offers. Another significant proposal is to enforce responsible bonus schemes that protect vulnerable players without driving them towards illegal markets.
Whatever measures are introduced, they should provide a more sustainable solution to the problem while maintaining the integrity of the regulated market. A total ban on bonuses is not the best way to balance responsible gambling with market sustainability. To avoid fueling the black market and monopolies, Sweden’s regulators may need to rethink their approach to promotional campaigns and introduce a more balanced solution that protects players without pushing them toward illegal casino operators.
