Advertising ban on the Swedish gambling market could be lifted

The purpose of the licensing system is to create a safe gambling market that is characterized by high customer value. The decision is not only an advantage to the players of Sweden. The Swedish state will secure revenues they otherwise would lose due to winnings previously being taxed in other countries.

Stricter gambling advertising rules

The transformation of the Swedish gambling market will entail several major changes. In addition to the fact that foreign gambling companies will have to apply for a license to be able to operate in Sweden, they will also be required to comply with the Swedish marketing practices act. Now the decision of the advertising ban could be revoked by a new bill from the gambling industry and several Swedish media houses.

Big setback for the Swedish gambling industry

The advertising ban has been subject to great criticism from the gambling industry and commercial media as the decision equals lost sales and revenues. Now they are hoping for an amendment in conjunction with a new bill the Government has presented for a referral. The proposal state that foreign gambling companies should be allowed to apply for a license in Sweden, which would make the marketing of foreign gambling sites on the Swedish gambling market legal.

If the bill passes, it will enter into force January 1, 2019. Pending the injunction, Swedish commercial media continue to make big money on advertising of foreign gambling companies.

Aggressive marketing methods

The gambling companies advertising strategies have become more aggressive as the internet becomes increasingly integrated into people's everyday lives. The adds are often from companies that are not under the supervision of Swedish authorities, and a large proportion of revenue from Swedish players disappear from Sweden's national borders. Today, foreign-based gambling companies without Swedish licences account for 70 percent of the industry's advertising investments (equivalent to 2.3 billion SEK).

The gambling companies have long been criticized regarding their aggressive marketing methods. Several gambling companies have even been condemned by the Swedish advertising Ombudsman (a self regulatory organization). Despite this, they continue to circumvent Swedish law since the marketing is conducted in channels broadcast from foreign countries. The consumer protection has been almost non-existent and people prone to compulsive gambling have been particularly exposed.

Decrease in gambling addiction

Now, expectations are that foreign gambling companies will comply with Swedish law as the Swedish gambling market adopt a licensing system. The advertising will become more regulated than previously, which means the volume of the advertising won't be as extensive. As a result, many industry experts believe gambling addiction will decrease among Swedes as less people will be exposed to aggressive gambling advertising campaigns.

The future of casino affiliates

Today, most online casinos use affiliate networks to increase sales. It's an arrangement where the affiliate network get paid for referring customers to a gambling site. An example of an affiliate site is Livecasinokings.com which compares casino bonuses at various gambling sites.

How casino affiliates will be affected by the new licensing system is most uncertain. Some argue that the new licensing system threatens the future of casino affiliates as the competition will intensify. Others believe casino affiliates will thrive. An argument for this is the positive development in Denmark, that has a similar licensing system that was established five years ago.