Sweden’s Gambling Landscape Under Scrutiny: A Shift in Channelisation Rates
As the anticipated review of Sweden’s Gambling Act approaches, intriguing new data reveals a decline in the channelisation rates for licensed gambling offerings in the country.
A recent report from Spelinspektionen, Sweden’s gambling authority, indicates a subtle yet noteworthy decrease in channelisation for 2024. The findings, released on Monday, show that the channelisation rate has dipped to 85%, a 1% drop from the 86% observed the previous year.
This year’s assessment utilized a fresh approach, diverging from previous methodologies. The regulatory body aimed to refine how these rates are calculated and the resulting data reflect this innovative strategy.
Interestingly, estimates from H2 Gambling Capital have been excluded this year. The firm recently revised its prediction for Sweden’s channelisation from a robust 91% down to a more concerning 72%.
The new report incorporates various analytical methods, including player surveys and traffic assessments from the internet. The survey garnered responses from 5,767 participants and identified over 2,000 unlicensed gambling websites.
Online casinos emerge as a significant challenge within the illegal gambling market, with channelisation rates for these platforms estimated to be between 72% and 82%. In contrast, traditional betting activities fare slightly better, with channelisation estimates ranging from 92% to 96%.
The report also reveals that approximately 96% of players engaged in the licensed sector in 2024. Respondents cited the allure of greater winnings on unlicensed platforms as a primary reason for their gambling choices.
Gustaf Hoffstedt, the Secretary-General of the Swedish Trade Association for Online Gambling, emphasized the importance of examining the current channelisation figure in relation to Spelinspektionen’s long-term target of achieving a 90% rate. He characterized the fact that nearly a quarter of online casino activity is conducted through unregulated channels as “unacceptable.”
Hoffstedt urged lawmakers to take further action, highlighting a long-standing trend of low channelisation without effective regulatory interventions.
Later this month, investigator Marcus Isgren will present recommendations aimed at revising Sweden’s Gambling Act, focusing on strategies to hinder the operations of illegal gambling sites.
While welcoming these proposed changes, Hoffstedt cautioned against overregulating the legal market, which may deter potential players. He remarked, “Those familiar with the gambling market understand that the overly stringent regulations make the licensed offerings less appealing to consumers.”
He further asserted that without reconsidering prohibitions on bonuses and loyalty rewards, upcoming assessments could yield disappointing evaluations.
In comparison, the Netherlands’ regulatory body recently acknowledged a similar decline in channelisation rates, dropping from 95% to 93%, although it also raised concerns about substantial gambling losses with unlicensed providers. This parallel reinforces the urgency for effective regulatory measures in both countries to safeguard players and promote licensed market engagement.