Branschföreningen för Onlinespel (BOS), the Swedish Trade Association for Online Gambling, has called for effective regulatory action after it was revealed that the decline of channelisation rates has continued in Sweden.
According to a report by Spelinspektionen, the Swedish gambling authority, it is estimated that the country’s competitive gambling market channelisation rate in 2024 was 85%, down 1% when compared to the previous year’s 86%.
Camilla Rosenberg, Director General at Spelinspektionen, said: “The channelisation rate in 2024 is estimated at 85%, which shows that the majority of Swedish gambling takes place with operators licensed in Sweden.
“Only a small part of the traffic to unlicensed websites consists of websites that the Swedish Gambling Authority has assessed through prohibition orders to be actively targeting Sweden without the necessary license, i.e. illegal gambling.”
Channelisation differs between gambling types as well, with the gambling authority noting that sports betting generally has a higher degree of channelisation (92% to 96%) in comparison to online casinos (72% to 82%).
As for why players use unlicensed operators, the top reasons included a better selection of games, being able to play despite being on Sweden’s exclusion list Spelpaus, better bonus offers and experiencing better winning opportunities.
BOS calls for licensed market structure review
In reaction to the report, BOS Secretary General Gustaf Hoffstedt has called on decision makers to undertake more effective regulatory action and to review the current legislative structure for the licensed Swedish gambling market.
Hoffstedt commented: “With this assessment, the SGA confirms that Sweden’s major problem in the gambling market is online casino. It is unacceptable that around a quarter of all online casino gambling is leaking out of the licensed market.
“It is equally unacceptable that this has been accepted by political decision-makers for half a decade, since the channelisation has also been low in previous assessments, without effective regulatory measures being taken.
“Later this month, gambling investigator Marcus Isgren’s proposal to change the scope of the Gambling Act will be presented. It is a welcome change in the law that will criminalise almost all unlicensed gambling in Sweden.
“But anyone who understands the gambling market knows that the elephant in the room is that the licensed market is so tightly regulated that it does not appear attractive enough in the eyes of the consumer. Without a review of, for example, the total ban on bonuses and other loyalty programs, next year’s channelisation assessment from the SGA will also be a disappointment.”
The topic of finding the right regulatory balance when it comes to tackling the illegal market was the subject matter in a recent interview with Cristiano Blanco, CEO of Hard Rock Casino NL, when discussing the regulated gambling market in the Netherlands.
Updated measurements
Spelinspektionen stated that the Swedish channelisation report offers updated 2024 measurements utilising a survey of players and measurements of internet traffic, adding that the proportion of players who have played in the licensed competitive market is estimated at 96%.
BOS highlighted that fewer sources have been used for the 2024 assessment, with data from H2 Gambling Capital being excluded, which adjusted its estimate for Sweden down from 91% to 72% recently.
The trade association proclaimed that the 85% estimate “should be compared with the state’s channelisation target for a long-term sustainable gambling market: at least 90%”.
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