New Swedish Regulation Could Result in Stalling Growth

Earlier this year, the Swedish gambling regulator Spelinspektionen sent out another letter to its licensees regarding the controls around bonus offers, which they warn can “encourage players to gamble in an unhealthy way.”

In its second letter delivered to all its license holders, the Swedish Regulator made it clear that it had already issued supervision orders against several operators (which so far have not been named).

As a route many thought would result with a slap on the wrist, the regulation also made it clear that any claims that the Law was unclear, are unfounded. The Regulations clearly state that iGaming operators under Swedish licensing can only offer players a bonus the first time they play on their website.

The letter carried a strong warning for operators, highlighting operators duty towards Responsible Gaming and emphasising that any infringements could face hefty fines and also revoked licenses.

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The Swedish Gambling Regulator also made it clear that cash back promos and any other incentives that are purely financial are also considered a bonus under this law. This puts operators in a difficult place. A lot of marketing player acquisition strategies depend on converting new players using precisely this kind of bonus, which means that this law could stall the growth of many Swedish license-holders.

However, these new measures will shift importance for operators to re-engage with already registered players to make up for lost income. We believe that reactivation services of any players throughout your CRM cycle, can be a very real solution to the revenue loss, which this Law will inevitably bring.

Getting in touch with old players and activating them through a direct telephone call could make up the difference in lost revenues, whilst creating longer lasting loyalty that will also increase a player’s lifetime value (LTV).

Our reactivation and activation (NRCs) services, through the use of (Re)activation Cloud have pushed our newly registered customer to depositing customer (NDC) by up to 15% with an increase in player reactivation rate of 460%

Our team is also highly sensitive to responsible gaming issues and we can help you comply with the Swedish self-exclusion scheme. In fact we offer screening by in-person reactivation agents that are constantly trained to stay abreast of developments in responsible gaming.

We deliver a very high ROI of around 300% to our customers, so if you’re worried this could be a sunk cost, we can assure you it won’t be.

So if the new legislation has been on your mind do not hesitate to contact Andrew Foster for a Free consultation on andrew.foster@enteractive.com

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