Sweden’s announcement last week of a proposal to impose limits on deposits and losses for online gaming to protect gamblers during the COVID-19 lockdown drew industry concern Monday that it will spread across the globe.
The topic came up when SBC Managing Director Andrew McCarron gave his welcome address to open the five-day SBC Digital Summit and subsequent panel discussion on business continuity.
Sweden’s plan, which would take effect June 1, calls for a weekly deposit limit of $500 and a similar loss limit for slot machines. There would also be limits on time played and bonus offers.
“Some jurisdictions are imposing deposit limits and nearly all are talking about it,” McCarron said. “Once those deposit limits are implemented, it’s a lot harder to get them raised. What we need to do as an industry is demonstrate that those deposit limits are not needed and that we are looking after the customers at a time their behavior may not be conducive to gambling.”
Spain and Belgium have moved to limit online gaming and Latvia has imposed a total ban.
Jesper Svensson, CEO of Sweden-based Betsson Group that offers online-gaming products, said it’s important for the industry to come together to work with regulators. The industry has a responsibility to protect customers and his company tracks customer interactions to do so.
“This is an industry that’s not always seen in the most positive light,” Svensson said.
Swedish officials said the proposal was prompted because of a pickup in online activity with a lack of sports betting options.
“What we are seeing at the moment is a dangerous cocktail of different conditions that could increase the risk of problem gambling and gambling addiction,” Swedish Social Security Minister Ardalan Shekarabi said last week. “Isolated individuals, with major worries about their jobs and finances, represent a dangerously fertile nursery for an increase in gambling problems.”
Shay Segev, COO of GVC Holdings, said they’re tracking players more, restricting marketing and putting up banners promoting deposit and time limits for players. Since retail casinos are shuttered across Europe, Segev said recreational players are spending more time at online gaming.
“We have taken further steps, because we don’t want to see people spending time or money on things they can’t afford, especially during this time,” Segev said.
Segev said they’ve seen an increase in eSports betting and poker and expects that to continue after the lockdown ends. “With poker, there’s a huge spike we haven’t seen in many years.”
Panelists said customer habits are changing because of COVID-19.
George Daskalakis, CEO and founder of online gaming brands Stoiximan and Betano, said even when retail reopens, there will be more of a shift to online.
“Things will not be the same for quite a while when it comes to consumer habits,” Daskalakis said. “When they open retail, it won’t be like in the past, with social distancing and security. We expect the shift to online to become more rapid. Players who did not have enough motivation to switch online are doing so. Some will get used to it and like it and not want to change back.”
