Gethin Evans, the Chief Commercial Officer at LeoVegas Group has warned that approaching Scandinavia as a single, uniform market is not the right approach and overlooks the distinct regulatory and structural realities of each country.
Speaking to iGaming Expert ahead of his appearance at the SBC Summit in Lisbon, where he will be speaking on the Scandinavian market and what is next for the region as tax frameworks tighten. Jone also placed channelisation under the microscope and analysed how the region can rally against the unlicensed space.
iGaming Expert: What one factor – taxes, bonus limits or payment controls- has had the biggest impact on consumer behaviour in Sweden and why?
Gethin Evans: If I had to highlight one factor, it would be Sweden’s prohibition on retention bonuses. The one-time welcome bonus rule fundamentally altered how licensed operators engage with players over the long term. Without the ability to reward player loyalty, we have seen a shift in behaviour among consumers – especially when compared to some of our other markets.
Crucially, this limitation has inadvertently made unlicensed offshore operators who face no such bonus restrictions more appealing, particularly to higher-value players.
This challenge was further compounded by the July 2024 GGR tax increase to 22%. When operators are forced to absorb higher operational costs, price-sensitive consumers immediately notice the value disparity. Together, these factors place significant downward pressure on channelisation rates.
In markets where bonuses are heavily restricted, what actually drives player acquisition today?
Trust is a constant – from brand through to responsible gambling support and advice. And from a customer experience perspective, simplicity and speed are things that really, really matter. We are focused on that more than ever and have accelerated in those areas with the launch of our proprietary sportsbook across our four brands in May.
Why is it so crucial to have a nuanced approach across markets in Scandinavia?
Approaching Scandinavia as a single, uniform market overlooks the distinct regulatory and structural realities of each country. A nuanced strategy is essential because the frameworks vary drastically. Denmark, for example, operates a mature, stable licensing model with healthy channelisation but with nuanced promotional needs. And Sweden represents a portfolio led market without retention bonusing.
Looking at the wider Nordic region, Finland is in the midst of a historic transition as it prepares to launch a competitive licensing regime in 2027 – without affiliates for example. Applying a one-size-fits-all strategy across these diverse landscapes wouldn’t work for anybody.
Is the Scandinavian player becoming fundamentally different from the player you see elsewhere in Europe because of the regulatory environment?
The fundamental motivations for playing – entertainment, excitement, and the appeal of winning – are universal.
Danish players behave similarly to a lot of regulated European markets. Sweden is different per the bonusing restrictions.
What is consistent is great service, and we spend a lot of time making sure we win here. Not only how we deal with customers, but how quickly we are able to help them – that makes a difference for customers and they tell us that regularly.
Norway’s monopoly is continuing to have an impact on channelisation rates despite greater enforcement on offshore activity. Does this suggest that enforcement alone cannot solve channelisation without a more attractive regulated proposition?
Our experience in Sweden shows that enforcement is only one part of the channelisation equation.
A regulated market also needs to remain attractive enough for consumers to choose licensed operators. In Sweden, the prohibition on retention bonuses, together with increased taxation and other restrictions, has widened the perceived value gap between licensed and unlicensed operators. That can place pressure on channelisation, particularly among customers who are more sensitive to product value and loyalty incentives.
The most effective approach is therefore one that combines appropriate enforcement with a competitive and commercially sustainable licensed market. Strong consumer protection ultimately depends on keeping customers within the regulated ecosystem.
What changes do you believe would have a genuine impact on the channelisation rate in countries such as Norway, Sweden and Denmark?
In Norway, the most meaningful structural change would be the introduction of an open licensing model that allows suitable private operators to apply for a local licence and compete within a clear, responsible regulatory framework. Norway currently operates an exclusive-rights model for the main forms of gambling, so there is no equivalent licensing route for commercial online operators.
In Sweden, the priority should be to improve the competitiveness of the licensed market. That could include reconsidering the prohibition on retention bonuses and allowing moderate, tightly controlled loyalty incentives, while also ensuring that taxation and other regulatory costs do not widen the value gap between licensed and unlicensed operators.
Denmark already has a mature and comparatively well-functioning licensing framework. The focus there should be on preserving its stability: maintaining proportionate marketing and promotional rules, giving licensed operators sufficient flexibility to innovate, and continuing effective action against operators that target Danish consumers without a licence.
Across all three markets, the principle is the same. Strong enforcement is important, but sustainable channelisation ultimately depends on consumers having access to a safe, competitive and attractive regulated proposition.
How can operators collaborate more effectively with regulators and lawmakers to shape a market that allows for strong growth while maintaining effective player protection standards?
The industry benefits most from proactive, data-driven collaboration. Operators possess deep, real-time insights into player behavior and market trends. By securely sharing anonymised, empirical data with regulators, the industry can help inform evidence-based policymaking.
This collaborative approach ensures that safer gambling measures effectively protect vulnerable consumers without inadvertently creating friction that drives the broader player base toward the unregulated market.
Beyond your panel participation, what are you most excited about for the upcoming SBC Summit in Lisbon, and why is it important for the industry to come together at these sorts of events?
I am most looking forward to the opportunity to exchange insights with our regulated European peers navigating similar complexities.
The industry is evolving rapidly, and the most valuable takeaways often fall out of conversations with those in the smartest regulated operators who are driving sustainable growth and adapting every day.
