New data has revealed a slight decrease in Sweden’s gambling channelisation rate to 85% in 2024.
The rate of channelisation indicates the amount of Swedish gambling activity occurring with sports betting apps licensed under the country’s regulatory framework.
It fell by 1% from the 86% figure reported in 2023 and Sweden’s gambling regulator, Spelinspektionen (SGA), used a different methodology from previous years for the latest study.
It utilised player surveys and internet traffic analysis with nearly 6,000 responses to the study and over 2,000 unlicensed websites were identified.
As for the black market, online casinos‘ channelisation rate was estimated to be between 72% and 82% compared to betting which had a rate between 92% and 96%.
The proportion of players who used the licensed competitive market throughout 2024 is estimated to be 96% but the survey found the main reasons for playing on the black market was better opportunities of winning.
The country’s secretary general of the Swedish Trade Association for Online Gambling (BOS), Gustaff Hoffstedt, noted it was important to compare the channelisation rate of 85% to the SGA’s long-term target of 90%.
Hoffstedt Slams ‘Unacceptable’ Black Market Presence
Hoffstedt believes it is unacceptable that around a quarter of online gambling is being played through unlicensed operators and wants more to be done by politicians to tackle it.
Sweden’s Gambling Act is poised for changes later this month when investigator Marcus Isgren presents a proposal to make it tougher for offshore sportsbooks to operate in the country.
While Hoffstedt backed these changes, he warned that the overregulation of the legal market needs to be addressed at the same time.
“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.”
Sweden has tight limits on casino sign up bonuses and loyalty programs that arguably reduces consumer appeal. Without reform, the regular market could lose competitiveness and undermine future channelisation efforts.
Joe Lyons is a betting industry writer for GamblingIndustryNews with years of experience on reputable gambling websites. Joe specialises in long form content in the world of sports betting and gambling. Joe is recognised as an expert in sports fields such as horse racing, soccer, NFL and NBA.
