Swedish gambling operator ATG has expressed concerns about the increasingly severe black market gambling in Sweden in a recent report. Since the introduction of the regulated gambling market in January 2019, black market gambling has surged dramatically. The report titled "Gambling Under the Radar—An Examination of the Effectiveness of Swedish Gambling Policy" shows that in the past five and a half years, the traffic to unlicensed gambling websites has increased tenfold.
Controversial Channelization Rate
"In 2022, ATG decided to take matters into our own hands," explained ATG CEO Hasse Lord Skarplöth (as shown above), "We can no longer stand by and watch our customers get hurt on unlicensed markets, while those of us who strive to comply with regulations are surrounded by stricter Swedish laws. Therefore, we developed a web traffic analysis tool that can accurately track the situation of Swedes visiting unlicensed gambling sites. Based on traffic data, we can estimate these sites' turnover. The results are quite disheartening."
Despite the government's initial goal of channelizing 90% of the market to licensed operators, ATG reports that the actual situation is far from expectations. ATG's analysis shows that the proportion of unlicensed gambling remains high, estimated at about 14% to 29% of gambling activities occurring outside the regulatory framework.
ATG's CEO was surprised by the government's claim in the latest budget that the channelization rate reached 91%, especially when the previous estimation methods were controversial. The Swedish regulatory authority Spelinspektionen estimates the channelization rate for 2023 at 86%. "There is always a risk of error when calculating data," he explained, however, the survey results in the report question the government's optimistic attitude towards the current gambling market.
Proposed Measures to Address Black Market Gambling
In response to the significant increase in unlicensed gambling, ATG has proposed a series of measures aimed at improving regulation and reducing the attractiveness of unlicensed platforms. Key recommendations of the report include:
– Redefining legal definitions: ATG advocates for amending current laws to stipulate that all online gambling activities offered to Swedish players must comply with Swedish gambling laws. This change would eliminate the unreasonable burden of proof currently imposed on the Swedish Gambling Authority (Spelinspektionen).
– Implementing IP and DNS blocking: The report emphasizes the need for legislative support to block unlicensed gambling sites. Drawing on successful measures in Denmark and Norway, ATG believes IP blocking can significantly reduce access to illegal gambling sites.
– Enhancing support for problem gamblers: The report calls for immediate assistance to individuals participating in the national self-exclusion program Spelpaus. Many bettors seeking help often continue to gamble on unlicensed sites, and operators believe that more resources should be invested in support organizations.
– Curbing high-risk gambling behaviors: ATG suggests introducing mandatory self-assessment tests similar to alcohol consumption prevention for new players to help individuals reflect on their gambling habits.
– Strengthening regulation of bonuses: The report urges a complete ban on all forms of gambling bonuses to eliminate companies' competitive advantage through bonus-driven responsible gambling. Competition should be based on the quality of the gaming experience, not promotional tactics.
