Social responsibility

Svenska Spel must work actively to minimise the negative social consequences of gaming operations. This endeavour has high priority in all operational decisions and leads to specific measures to develop a strong sense of responsible gaming.

Svenska Spel’s social responsibility is to provide gaming in a responsible and secure manner and minimise the negative consequences of the Company’s operations and products. Svenska Spel’s mandate includes:

• prioritising social welfare in the development of games and in the business as a whole,
• adopting a precautionary approach to new games and markets,
• and having a responsible focus in the Company’s marketing that also reflects social commitment to ensure that it is not perceived as over-assertive.

Svenska Spel’s responsible gaming policy describes the guide­­lines for responsible gaming. The policy states how the Company shall meet the above requirements. Svenska Spel’s aim is to pursue responsible gaming programmes through effective, responsible gaming efforts and thus distinguish itself from other gaming companies on the Swedish market.

Responsibility is also highlighted in Svenska Spel’s corporate values, the internal guide that underlines the value of accessible, considerate and committed employees.

Objectives of responsible gaming

Svenska Spel shall be perceived as a responsible company. This means that people shall enjoy playing on Svenska Spel’s games. They shall perceive that Svenska Spel is reliable and secure, offering them the means to maintain control of their gaming.

Responsible gaming strategies

• Svenska Spel shall aim at identifying and producing a net social value that exceeds the costs arised by the ­Company’s operations.
• Responsible gaming shall be integrated with the business and have a distinct and relevant control system.
• Make responsible gaming part of the gaming experience.
• Increase public awareness of Svenska Spel’s mandate and responsibility.

Responsibility in developing games

The precautionary principle is applied in the development
of new games and in the composition of the overall gaming offering. The principle entails, for example, that Svenska Spel does not develop games that are considered risky unless such games are already available in the market.

Svenska Spel uses the GAM-GaRD tool, which was developed by researchers and is compulsory in the product development process. This tool is used to identify risk components in a game and to classify and document each product. Games with higher risk are altered or provided with enhanced consumer protection and/or preventive tools.

Responsible gaming in all channels

Svenska Spel works with responsible gaming programmes at the overall level and with measures focused on and customised for the various sales channels. Examples of this approach include the outreach dialogues that staff at Casino Cosmopol have with their guests, and the specific requirements that Internet poker players must meet before they can start playing, as well as the identity requirements imposed by retailers and business partners.

Responsible gaming – Internet

Svenska Spel utilises the Playscan™ tool on svenskaspel.se, which draws the attention of the players to potentially risky changes in behaviour in their gaming. It offers recommen­dations and tools – such as a gaming budget and time limits – which can help players to change their behaviour and maintain their gaming in a sound way. By December 2011, 53,844 customers had activated Playscan™, an increase of 6,800 people ­compared with 2010.

Responsible gaming – Casino Cosmopol

If they experience their gaming as a problem, Casino ­Cosmopol’s guests can sign a voluntary agreement to limit their casino visits to a maximum of eight per month, or request to be banned completely for at least six months. These agreements can be signed remotely or on the casino premises.

During 2011, 2,350 players (2,282) chose to sign voluntary agreements or to be banned from playing at any of Casino Cosmopol’s casinos. At year-end 2011, 4,149 people had active agreements.

 During 2011, 4,151 (3,923) outreach dialogues were held with guests who showed signs of unhealthy gaming or belonged to the 20–24 age group, a group with an increasing share of gambling problems.

A new guest registration and incident-management ­system was procured, in addition to more effective camera surveillance of casino operations.

Responsible gaming – Vegas

Svenska Spel makes efforts in order to strengthen its responsibility for Vegas in making an agreement to purchase responsible gaming tools. These tools will be available via the Spelkortet loyalty card and enable the customers to set volontary gaming limits in terms of time and money spent, as well as making it possible to ban themselves from Vegas gaming. The test will commence at the end of 2012 and the responsible gaming tools are estimated to be available for all Vegas customers in summer 2013.

By means of test purchases, Svenska Spel continually ensures that the age limit is observed. In 2011, 2,473 test ­purchases were completed. The number of approved test purchases increased in comparison with 2010. The business area also trained some 2,000 business partners in a new responsible gaming training programme.

Responsible gaming – Retailers

During 2011, customer security at retailers was enhanced with the introduction of identity controls for payouts over SEK 1,000. For winnings of SEK 20,000 or more, the retailer terminal is blocked and the winner must directly contact Svenska Spel before collecting the winning.

By using test purchases, Svenska Spel ensures that the age limited is observed at retailers. 84% of the retailers were approved in test purchases. ID control became a new routine for lottery retailers just over a year ago, which is why their results are lower. An average of 73% of all retailers were approved in test purchases, as shown in Key indicators for responsible gaming .

Training in responsible gaming

Svenska Spel continuously trains employees, retailers and business partners in responsible gaming. All new retailers undergo responsible gaming training that, among other things, includes information on the risks of gaming, available of responsible gaming tools and the importance of age controls.

2011 Svenska Spel implemented a new responsible gaming training for managers. The purpose was to offer managers deeper insight into Svenska Spel’s responsible gaming programmes, thereby improving the integration of responsible gaming into the company’s entire operations.

Marketing

Svenska Spel has its own marketing guidelines, but also follows the guidelines from SPER (Ethical council of the Gaming Industry) and the standard set by European Lotteries. Guidelines state that marketing must be responsible and minimise the risk of excessive gaming. It must not be perceived as too assertive. Read more about Svenska Spel’s view on responsible marketing in the interview with Annika Ferm.

In December 2011, the Government extended Svenska Spel’s gaming licences, and included in the documents the age limits and marketing restrictions for the various games.

Security and risk management

Svenska Spel seeks to discover and prevent unethical behaviour, both internally and externally. The Company is explicit that its operations must not be used for money laundering or other criminal activities. The development of competitive products and distribution channels with integrated responsible gaming and gaming security is thus an important part of the business.

Svenska Spel’s mandate includes:

• Observing consumer interest as a reliable alternative to ­illegal gaming operations.
• Taking due consideration of the risk of fraud and illegal gaming.
• Maximal security in gaming.

During 2011, Svenska Spel conducted its first Group security conference. Among other things, the aim was to provide a better overview of the Group’s overall security programmes, identify future challenges and competency requirements, and create the conditions for the development of the Group’s security activities.

Incidents

In November 2011, following a decision of the public prosecutor, eight people were arrested and detained on ­suspicion of gross embezzlement. Seven of those detained were employees at Casino Cosmopol in Gothenburg.

The casino’s surveillance unit discovered irregularities and observed the suspects over a period of time before calling the police. No guests were harmed by the alleged crime.
A labour dispute arose in conjunction with the incident.

Money laundering

The risk of and attempts at money laundering arise in ­contexts involving substantial cash flows, such as casinos. ­How­ever, the measures the casinos take are considered effective, and the cooperation with the authorities concerned has been effective.

In 2011, Casino Cosmopol reported 284 incidents (311)
to the Financial Police in accordance with the money laundering law.

Illegal gaming machines

Svenska Spel continuously reports illegal gaming machines, i.e. machines that do not belong to Svenska Spel. Reporting is made to the authorities concerned, primarily the Swedish Gaming Board. Svenska Spel conducts regular controls at retailers and business partners and, when discovering illegal gaming machines, terminates the contract if they are not removed. In 2011, eight retailers (nine) were terminated due to having illegal gaming machines in their venues.

Fraud

Svenska Spel shall counteract fraud and cooperates with
the police, banks and card companies in matters relating to stolen or counterfeit credit cards at retailers, business partners and on the Internet. During 2011, Svenska Spel adapted to the card companies’ PCI certification – an extensive programme aimed at increasing data security and which is a prerequisite for handling card-based transactions. Svenska Spel strengthened its fraud procedures in 2010 and the banks improved their routines for card-based payments in 2011. Therefore, fraud is no longer considered a major problem.

Gaming on credit

Controls are made when something indicates that gaming
on credit may occur at retailers or business partners. Where there is enough evidence, the contract with the retailer or business partner is immediately terminated. Contracts with two retailers (one) were terminated in 2010 as they had accepted gaming on credit.

Swedish National Audit Office review social consideration

In March 2011, the Swedish National Audit Office decided to conduct a review of the State’s role on the gaming market. The review is to be finalised in May 2012. The purpose is to examine the Government’s adjustment of current gaming regulations and the organisation of the State undertakings, so that Parliament’s goal of a sound and secure gaming ­market can be reached in an effective way. A review is also to be made concerning the Government’s control and monotoring of Svenska Spel’s operations and its work to ensure a safe and sound gaming market.

Activities and results, 2011

• Stage 2 of the responsible gaming training for managers was implemented.
• Implementation of a new central system for Vegas VLTs, ­permitting the introduction of responsible gaming tools.
• Test purchases at lottery agents were introduced to ensure observance of the 18-year old age limit on buying and ­collecting winnings on lottery tickets.
• Customer security in the payout of winnings was enhanced.
• Launch of a new version of PlayscanTM with a new potential to monitor and analyse gaming behaviour.
• Launch of new responsible gaming training for Vegas ­business partners.

Focus for 2012

• Increase stakeholders’ awareness of Svenska Spel’s sustainable development programmes.
• Testing the new responsible gaming tools for Vegas will start in the end of 2012 and the responsible gaming tools are supposed to be available for all Vegas customers in summer 2013.
• Develop responsible gaming for mobile phones and secure a presence in new, emerging digital platforms.
• Casino Cosmopol will focus on identifying and reporting suspected cases of money laundering.
• Further integrate security programmes and risk management with business operations.
• Training courses to raise the security awareness throughout the organisation.