A review of turnover at Sweden’s online casino market has revealed a major downturn in fortunes for licensed operators. In particular, new restrictions around deposit limits imposed by the government in July, are hitting gambling firms the hardest.
Swedish law makers introduced a new maximum deposit limit of SEK5,000 (equivalent to $554, €470 or £427) per week from 2nd July, in addition a limit of SEK100 ($11, €9 or £8) on bonuses.
It is estimated that across the board, the major igaming companies in Sweden have seen a fall in turnover of 30% from casino revenue. The general feeling it that the deposit and bonus limits are responsible for nearly all of the decline.
The new regulations were introduced during the current coronavirus pandemic, as authorities considered the implications of people spending more time at home. However, the effect has been far more impactful on operators who are currently counting the cost of the strict limits imposed.
ComeOn Group and Spooniker both reported declining revenues in excess of 30% during July and August this year. This also conisided with the cancelling of major sporting events such as the Euros finals and much of the global racing calendar.
The restrictions on deposits limits will stay in place until the end of 2020. Online gambling organisations in Sweden are hoping that the return of major sporting events will allow them to see them through until the restrictions are lifted.