Commercial gaming

International conventions and guidelines on commercial gaming activities1, which Sweden support, are guidelines for the AP Funds' Council on Ethics (The Council on Ethics). They provide acceptance for companies that produce and market commercial games. For the Council on Ethics, it is important that companies act responsibly and transparently with regard to game production, marketing and sales. The companies must comply with national legislation in the area and take responsibility for a self-regulation of the activities in order to prevent negative social, health and economic effects of the gaming products and services they provide.

International conventions and guidelines on commercial gaming activities1, which Sweden support, are guidelines for the AP Funds’ Council on Ethics (The Council on Ethics). They provide acceptance for companies that produce and market commercial games. For the Council on Ethics, it is important that companies act responsibly and transparently with regard to game production, marketing and sales. The companies must comply with national legislation in the area and take responsibility for a self-regulation of the activities in order to prevent negative social, health and economic effects of the gaming products and services they provide.

Background

In many cases, gambling is a harmless activity that can serve a purpose as entertainment or a pastime. However, some individuals find it difficult to set limits to their gambling, which can lead to gambling addiction and misuse, causing great harm to themselves and society. This can take the form of financial losses or that the time and energy that the individual devotes to gambling makes it difficult to maintain normal social relations and keep personal finances in order. Other sustainability aspects regarding gaming include prevention and counteraction of corruption and money laundering.

The digital market for gaming is undergoing rapid development and change. Companies that produce and market digital gaming services must handle the complexity caused by regulations on different markets, and interpretation of these regulations, in a responsible way.

International conventions and guidelines

A number of conventions and guidelines have influenced the Council on Ethics’ position on commercial gaming, including:

  • CEN Workshop Agreement on Responsible Remote Gambling Measures (CWA 16259:2014).
  • The United Nations Convention against Corruption.

The Council on Ethics finds that guiding conventions and guidelines on commercial gaming activities provide support for the AP funds to invest in companies that produce and market betting games.

The Council on Ethics’ view on commercial gaming – responsibility and transparency

For the AP-funds, it is important that the companies carry out their production, marketing and sales of gaming products in a responsible and transparent manner. The companies must take responsibility for self-regulation, in order to prevent negative social, health-related and financial effects of their gaming products and services.

The Companies must

  • comply with applicable laws in the countries in which they operate
  • comply with applicable sector standards or apply their own rules for responsible marketing and sales
  • actively influence suppliers and customers to ensure compliance with applicable laws
  • manage and prevent sustainability risks and gambling addiction, and
  • work actively to prevent and counteract corruption and money laundering.

The Council on Ethics engages in dialogue with international corporations that can be linked to actions which defy international conventions that Sweden has ratified. The purpose of the dialogues is partly to get the companies to remediate the issues, and partly that the company should adopt policies and processes to avoid future actions that go against these conventions.

The Council on Ethics uses direct dialogue with companies as its most important tool to work for change. Cooperating with other investors and voting at annual general meetings to add more pressure to the dialogues are other examples of how the Council on Ethics works. If a dialogue does not lead to the desired changes the Council on Ethics may, as a last resort, recommend for the AP-funds to exclude the company.

(1) Commercial gaming includes online gaming, betting, land-based commercial gaming, and gaming on ships in international waters.