Tightening regulations across Europe, including tax increases and player stake limits, are expected to hit the legal gambling sector hard. As a result, a divide between stakeholders and regulators has been growing for some time as many operators insist these measures will only serve to push players into the illegal market.
Speaking in an interview with iGB at ICE, Lindwall’s comment comes in response to one regulator noting it is not their job to lobby on behalf of the sector.
“I can say very frankly that regulators sometimes have misunderstood their role, because their role is to create a regulation which protects the consumer and which brings in tax revenues,” he said.
“They push the business out of the regulated [sector], they don’t fulfil any of [those promises]. To move in the right direction within that area, they have to discuss with the industry.”
Lindwall called for further collaboration between stakeholders and regulators as they share the same common interest of having a regulated market that works out.
“[Tightening regulations in Europe] is the biggest challenge for us as a gaming company,” he added.
“But I would say [it’s even more of a challenge] for the regulators themselves, because they are regulating themselves out of the market from time to time and it just can’t be the way they want to go.”
He emphasised the importance of educating policy makers. “We try to cooperate with authorities and discuss with them. We want to have a closer relationship and to keep on educating to get sustainable frameworks in place.”
The Betsson CEO highlighted taxation as a particular sore point. “It’s so stupid to put all our efforts into the regulation just to find out at the end of the day that very few people remain playing within the regulation, and we’ve seen that happen in places like Germany.
“We are concerned by that tax and we will see how to deal with it, and obviously discuss with the regulators to try to find some kind of common ground on how to take that further.”
In 2021, Germany employed a 5.3% turnover tax on online slots and poker stakes. Tax revenue figures released by the government have shown tax income from online slots has shrunk since 2021 as players ultimately shift to playing on illegal sites and operators pull out of the market.
“Potential in LatAm is great for Betsson”
However, Lindwall was extremely positive on the opportunity for Betsson in LatAm, where it has seen early success in markets like Peru.
“We have a good organisation and presence in some of the markets. The region is growing and it’s going to grow on the online side for many years. The potential is great,” he told iGB.
In Q3 Betsson reported its Latin America revenue hiked 34.2% to a record €69.4 million (£58.6 million/$72.2 million), largely driven by casino. The group reported growth in Argentina, Colombia and Peru.
While the operator secured a provisional licence in Brazil on 1 January, Lindwall said he expects the market to be hugely competitive and revealed Betsson is now working on how to manage the influx of competition into the legal market.
Original article: https://igamingbusiness.com/legal-compliance/regulation/betsson-pontus-lindwall-regulators-misunderstood-role/
