Sweden’s Licensed Gambling Market Remains Strong at 85% in 2024 Despite Ongoing Challenges

In 2024, Sweden’s gambling authority, Spelinspektionen, reported that 85% of all gambling activities within the competitive market were carried out through operators licensed in Sweden. While this shows a slight decrease from 86% in 2023, it remains a notable improvement compared to the period before regulation when less than half of gambling occurred within the licensed framework.

Impact of Enforcement and Continued Attraction to Offshore Casinos

Experts estimate the market share controlled by licensed operators, known as the channelisation rate, by analyzing player surveys and web traffic data. The 2024 survey included over 5,700 participants, with 96% confirming use of at least one licensed operator during the year.

The channelisation rate varies by gambling type. Sports betting maintains a strong position, with an estimated rate between 92% and 96%, demonstrating compliance with regulations. However, online casinos lag behind, with a channelisation rate ranging from 72% to 82%, indicating a significant portion of casino gaming still takes place on unlicensed websites.

Spelinspektionen highlighted that players opting for offshore platforms often cited reasons such as more favorable odds, larger bonuses, or restrictions imposed by the Spelpaus self-exclusion program as motivating factors. Some also pointed to the availability of alternative payment methods or games not offered domestically.

Despite these challenges, the regulator noted that only a small fraction of the traffic to unlicensed sites originates from operators actively targeting Swedish customers. This suggests that enforcement measures, including bans and access blocks, are contributing to reducing illegal marketing practices.

Industry Calls for Policy Reform Amid Competition with Offshore Operators

In 2024, licensed operators generated a total net revenue of SEK 27.8 billion (approximately $3 billion), with SEK 18.1 billion ($1.9 billion) coming from the competitive online casino and betting segments.

Industry representatives continue advocating for policy adjustments to strengthen the regulated market’s appeal. The Swedish Trade Association for Online Gambling (BOS) argues that strict regulations, such as the prohibition on bonuses, hinder licensed operators’ ability to compete effectively with offshore providers. Anticipated amendments to the Gambling Act later this year aim to reinforce actions against unlicensed operators while reconsidering some regulations that challenge compliant businesses.

While Spelinspektionen regards the current channelisation level as progress, it recognizes the need for further improvement. The regulator’s ultimate objective is to achieve a 90% channelisation rate, fostering a safer, more controlled environment for Swedish gamblers.