Sweden bonus ban could favor gambling monopolies

The ongoing debate in Sweden regarding a potential blanket ban on iGaming bonuses has generated significant attention across the country’s regulated gambling landscape. This discussion intensified after Svenska Spel and ATG, two major operators with historical ties to Sweden’s previous gambling monopoly structure, publicly advocated for the prohibition of all bonus incentives offered by licensed online operators. Their position has sparked a broader industry dialogue about potential market implications, regulatory balance, and the risks such a measure may pose for consumer protection.

The Swedish Trade Association for Online Gambling (BOS), represented by Secretary General Gustaf Hoffstedt, has strongly questioned the motivation behind the proposed ban. According to BOS, implementing such restrictions may not achieve the intended public-interest outcomes and could inadvertently strengthen the position of monopolistic operators while driving consumers toward unlicensed offshore platforms.

This expanded and legally cautious analysis explores the ongoing dispute, the arguments from all sides, and the wider context of Sweden’s regulatory reform.

Background to the bonus ban proposal

Svenska Spel and ATG call for prohibition

On 7 November, Svenska Spel and ATG submitted a jointly authored op-ed to Svenska Dagbladet in which they advocated for the abolishment of all online gambling bonuses granted by licensed operators in Sweden. Their position focuses on consumer safety, especially regarding the influence of bonus promotions on younger audiences.

The op-ed, authored by Svenska Spel’s Anna Johnson and ATG’s Hasse Lord Skarplöth, presented concerns that online bonuses could increase the likelihood of gambling-related problems. The authors highlighted the particular appeal these incentives might have for younger individuals, including those close to the legal gambling age. They also referenced statistical data from a report issued by the Swedish Association for Alcohol and Drug Education (CAN), which documented an increase in gambling participation among boys in their second year of high school—from 27% to 43% over a five-year period.

While the data reflects broader concerns about youth gambling activity, Svenska Spel and ATG attributed part of the problem to the availability of bonuses from licensed iGaming operators. Their article implied that limiting the availability of such incentives would reduce the attractiveness of gambling to younger audiences and help mitigate associated risks.

BOS reacts to proposed restrictions

Hoffstedt challenges the assumptions

BOS Secretary General Gustaf Hoffstedt responded firmly to the op-ed, expressing concerns that the proposal could have broader and potentially negative consequences for Sweden’s regulated gambling environment. In his view, the link between online bonuses and rising gambling participation among minors is not sufficiently established.

He emphasized this point in a public statement, noting:
“We believe that everyone agrees and is concerned that gambling among young people under the age of 18 is a growing problem.”
However, he added that attributing this rise solely or primarily to bonuses directed at adult consumers is an overly narrow interpretation of the issue. He further argued:
“But to claim that this is due to the welcome bonuses that are currently offered to adult players, without mentioning how today’s young people learn to play for money through so-called skins and loot boxes in their favourite games, is not serious.”

In making this distinction, Hoffstedt suggested that gambling-like mechanics found in online video games, such as paid loot boxes and tradable virtual items, may play a more substantial role in youth engagement with gambling-style activities than regulated bonuses intended for adults.

Concerns of unfair market advantage

Hoffstedt also suggested that eliminating bonuses could disproportionately benefit Svenska Spel and ATG, who originally operated under Sweden’s state-controlled monopoly system prior to the gambling market re-regulation in 2019. According to BOS, other licensed operators—many of whom entered the Swedish market after its liberalization—rely on bonuses as one of the primary tools to attract consumers in an already highly competitive environment.

Hoffstedt stated:
“Both of these gambling companies, which emerged from the Swedish gambling monopoly, took significant market shares with them from the start when the Swedish gambling market was re-regulated in 2019.”
He added that competitors starting with smaller or nonexistent customer databases face substantial disadvantages if deprived of standard marketing options such as bonuses:
“The fact that their competitors, who in many cases start with zero customers on their data base, are prohibited from offering a bonus when a new customer is recruited is of course tempting for the old monopolists.”

With this remark, he indicated that prohibiting bonuses could further entrench Svenska Spel and ATG’s dominant market positions rather than advance consumer safety goals.

Regulatory balance and risk of market shrinkage

Potential for unintended consequences

One of the most critical points raised by Hoffstedt relates to the broader functioning of Sweden’s regulated gambling market. Since 2019, Swedish authorities have aimed to channel consumers toward licensed operators, thereby ensuring adherence to legal standards, responsible gambling frameworks, and consumer protection mechanisms.

A significant concern expressed by BOS is that banning bonuses altogether might weaken the attractiveness of licensed operators, ultimately driving users toward offshore platforms that operate without Swedish licenses and outside the country's consumer-protection structure.

Hoffstedt warned:
“A high proportion of legally licensed gambling is achieved through striking a balance between consumer protection and gambling pleasure. The gambling consumers must themselves want to be in the licensed gambling market. If this is not achieved, the entire system will collapse.”

His statement reflects a core principle in modern gambling regulation: national frameworks are most effective when consumers voluntarily choose to remain within them. If legal operators become too restrictive compared to unlicensed alternatives, the channelisation rate—the proportion of consumers gambling with regulated sites—may decline.

Risk of reduced market share for licensed operators

Hoffstedt also cautioned that removing bonuses could accelerate a reduction in the proportion of gambling activity conducted within Sweden’s regulated sector.
He stated:
“Now Johnson and Lord Skarplöth also want to remove the possibility of giving a bonus to a new gambling customer. If they get their way, we probably haven’t seen the bottom yet in how low the proportion of legally licensed gambling can fall.”

His remarks underscore industry concerns that further restrictions may unintentionally harm the regulated sector’s viability while strengthening the presence of unlicensed offshore operators.

Sweden’s broader regulatory review

Government seeks to curb illegal gambling

The debate over bonus restrictions comes at a time when Sweden is actively reviewing and updating its gambling legislation. The Swedish Ministry of Finance recently published a report prepared by investigator Marcus Isgren, outlining proposals aimed at strengthening the current regulatory frameworks. These amendments are intended to enhance enforcement capabilities and close loopholes exploited by unlicensed gambling operators.

The review reached a milestone in September when the government released the findings, which focused on measures such as improving supervisory powers, addressing illegal marketing, and tightening compliance requirements for operators.

Ongoing challenges

Despite the progress, Hoffstedt and other industry stakeholders have previously expressed the view that regulatory adjustments alone may not fully resolve the challenges posed by unlicensed gambling. In prior commentary, Hoffstedt indicated that the market’s structural issues—particularly the persistence of illegal platforms—may require further comprehensive solutions.

This ongoing complexity underscores a central theme in Sweden’s gambling policy discourse: the need to balance consumer protection, market competition, and the sustainability of regulated operations.

Industry debate continues

The debate surrounding the proposed bonus ban is far from settled. While Svenska Spel and ATG emphasize the potential risks posed by bonuses, BOS and other industry groups argue that such measures may not address the root causes of gambling-related harm and could instead undermine the long-term stability of Sweden’s regulated gambling market.

Both sides agree that protecting young people and vulnerable consumers remains a paramount concern. The point of contention is how best to achieve this objective while also maintaining a healthy, competitive, and compliant market environment.

For now, policymakers continue to evaluate arguments from operators, regulators, and industry associations. The ultimate decision on whether to restrict or abolish bonuses is likely to form part of Sweden’s broader legislative overhaul, making it a key area to watch in the ongoing development of the country’s gambling policy.

Conclusion

The discussion around banning online gambling bonuses in Sweden reflects a complex intersection of consumer protection, market competition, and regulatory integrity. While Svenska Spel and ATG emphasize risk mitigation and youth protection as core reasons for a blanket ban, BOS and other stakeholders warn that such a move may produce unintended consequences, including strengthening monopolistic advantages and pushing consumers toward the black market.

Striking a regulatory balance remains essential. Sweden’s ongoing legislative review aims to address illegal gambling and uphold consumer safety, but the question of bonus restrictions highlights deeper debates about how to achieve these goals without compromising the regulated market’s effectiveness.

As Sweden continues adjusting its gambling policies, the industry awaits further clarity on how the government will navigate this sensitive issue. What remains clear is the shared recognition that consumer protection must be preserved, while ensuring that regulations remain fair, proportionate, and aligned with long-term public-interest outcomes.

FAQs

What is the main concern about banning iGaming bonuses in Sweden?
The primary concern is that banning bonuses could reduce the attractiveness of licensed operators and push consumers toward unlicensed websites, undermining regulated market stability.

Why did Svenska Spel and ATG support a bonus ban?
They argued that bonuses may contribute to gambling-related risks, particularly among younger individuals, and suggested restrictions could enhance consumer protection.

What position has BOS taken on the issue?
BOS has questioned the effectiveness of a bonus ban and raised concerns that it may unintentionally strengthen former monopoly operators while harming market competition.

Does BOS believe bonuses cause youth gambling?
BOS has stated that the rise in youth gambling is more likely linked to digital gaming mechanics such as loot boxes and skins rather than bonuses targeted at adults.

How could a ban affect licensed operators?
Licensed operators may lose a key marketing tool used to attract and retain customers, which could reduce channelisation to the legal market.

Why is channelisation important in gambling regulation?
High channelisation ensures that consumers interact with licensed operators that comply with responsible gambling and consumer-protection standards.

What do supporters of the ban argue?
Supporters believe limiting bonus offers may create a safer environment by reducing incentives that could lead to risky gambling behavior.

What do opponents of the ban argue?
Opponents believe that the ban could drive players to offshore operators that do not follow Swedish regulations, weakening consumer protection.

How does this debate relate to Sweden’s larger regulatory review?
The bonus ban discussion is occurring alongside broader reforms aimed at reducing illegal gambling and strengthening regulation.

Is a final decision on the bonus ban expected soon?
The issue remains under consideration as part of Sweden’s ongoing legislative review, and further developments are expected as policymakers weigh industry feedback.