Betsson AB CEO: Politicians are “totally out of bounds” with some regulations 

Betsson AB CEO Pontus Lindwall has criticised the involvement of some politicians when it comes drafting regulations for the gambling industry amid a spike in black market activity in Europe.

Speaking at an industry event in Malta, Lindwall suggested that low levels of channelisation in European markets are evidence that politicians may not be supporting the regulated sector to the best effect.  

In the Netherlands, which Lindwall cited as an example, the Netherlands Gambling Authority (KSA) announced last month 50% of gambling spend in the region takes place in the country’s black market. 

That is despite the regulator’s monitoring report also highlighting that 91% of Dutch players solely place bets with a legal operator, indicating that higher value users are leaking out of the regulated arena.

This marked a decrease from the 95% channelisation rate the KSA reported in H1 2024, too.

Lindwall said: “No politician can claim to have a successful regulation when they have a channelisation rate of around 50%, as they mentioned in the Netherlands recently.  

“I think politicians just need to learn and need to understand that they are totally out of bounds with these regulations, and they need to swing back.  

“I’m an optimist, so I believe it will swing back because it’s not a sustainable situation when the only ones who can celebrate are the operators that work outside of the regulations, that’s not the goal for society.” 

The Swede’s comments echo those he made when speaking to EGR last month after Betsson’s Q1 earnings report was published. At the time, Lindwall said: “It’s a learning curve for politicians that internet gaming is not a static thing. It’s a dynamic thing. If you push something in one place, it will have an effect in another.”

The CEO was referencing the Swedish government’s decision to raise the tax rate from 18% to 22% last July, which several operators have said has had an adverse effect on profits.

Staying in Sweden, horseracing operator ATG’s latest market data report estimated the region’s channelisation rate to be as low as 69%.  

Former Svenska Spel and Mr Green CEO Jesper Kärrbrink suggested on the same panel that the problem lies with countries appointing regulators from outside the gambling industry.  

He added: Operating in the regulated market comes with the price, and that price is that we are fighting against unfair rules. This is why I advocated for re-regulation back at Svenska Spel.  

“I wanted us to be in regulated markets where we could compete on the same terms. We are currently not competing on the same terms, and that means that regulation is not working. 

“Channelisation is going down in most markets, and that comes back to the politicians and regulators beyond gaming – they don’t like [gaming].

“With financial regulation for example, the regulators are from the financial market. The regulators in gaming aren’t from the gaming industry, and that’s the problem.” 

The post Betsson AB CEO: Politicians are “totally out of bounds” with some regulations  first appeared on EGR Intel.

 Pontus Lindwall suggests that recent changes in Europe, including tax hikes and deposit limits, are unsustainable as they continue to serve black market operators
The post Betsson AB CEO: Politicians are “totally out of bounds” with some regulations  first appeared on EGR Intel.