After a prior cap of SEK5,000 was in effect for most of 2020 and 2021, the Swedish government said earlier this month that it planned to reintroduce a variety of temporary controls for the gambling sector, including a deposit cap.

The government decided not to implement the plan, which included the cap and other measures like a SEK100 restriction on sign-up bonuses, which were supposed to be announced today (27 January) and go into effect on 7 February.

Although the cap failed to lessen gambling harm, Gustaf Hoffstedt, secretary-general of industry association BOS, who met with state secretary Alejandro Firpo earlier today, stated that the government had taken the correct decision.

"The government has made a wise and well-balanced decision," Hoffstedt remarked. The overall trajectory of the pandemic is a contributing factor. Reason being, these limitations would fail miserably in their intended role of safeguarding the public's health. 

Strong regulation of the gaming business is something we can get behind, but only if the changes made are actually going to accomplish what they set out to do. With the COVID-19 limits, such was not the case, thus their removal is really appreciated.

Responding to a consultation on the subject, BOS had earlier voiced their disapproval of the regulations. Operator Kindred criticised the return of the cap as "ill-founded," but regulator Spelinspektionen stated that it would not oppose the rules in its own consultation response.

Among the many new regulations for the gambling industry that the Swedish government unveiled earlier today were stricter advertising regulations and a gaming software licence for gaming suppliers.