Swedish Gambling Market Should Draw Inspiration from Denmark’s Regulatory Success
Swedish Trade Body Recommends Regulatory Changes
The Swedish Trade Association for Online Gambling (BOS) has conducted an analysis of how gambling markets are regulated across the Nordic countries, with a focus on comparing Sweden and Denmark. The association suggests that Sweden could benefit from adopting some regulatory practices used in Denmark.
Lessons from Denmark’s More Stable Market
By examining Denmark’s iGaming and gambling sector, BOS has developed a series of recommendations it has presented to Sweden’s regulator, Spelinspektionen. Their findings highlight that Denmark has achieved greater market stability and a higher percentage of players using regulated channels compared to Sweden.
Challenges in Sweden’s Channelization Rate
BOS warns that Sweden’s goal of reaching a 90% channelization rate—meaning the share of gambling activity occurring within the regulated market—may not be attainable under current conditions. To address this, the trade body proposes an 18-point action plan aimed at fostering growth and attracting players who currently turn to offshore operators due to limited domestic options.
Criticism of Harsh Restrictions
The association advises against investing time and resources in restrictive measures like blocking Internet Service Providers (ISPs) or payment methods. Such approaches are deemed ineffective and overly burdensome. Instead, BOS points out that players leave the regulated market not because they are unaware of offshore alternatives, but because the local market lacks appealing offers and incentives.
Advocating for Collaborative Regulation
BOS also criticizes Sweden’s regulatory approach, which heavily relies on punitive actions, advocating instead for a regulatory style centered on dialogue and cooperation. This shift could address some of the significant regulatory shortcomings and improve market conditions.
A Call for a Cultural and Regulatory Shift
According to BOS Secretary General Gustaf Hoffstedt, challenges arise not only from strict regulatory rules—such as those governing loyalty programs—but also from cultural attitudes toward the industry. He encourages policymakers to closely examine current market issues and explore more effective solutions to strengthen the regulated gambling environment in Sweden.
