The Swedish Gambling Authority (Spelinspektionen) released its channelization assessment report for 2024, showing that about 85% of gambling activities in the country are conducted through licensed operators, a decrease of 1 percentage point from 2023, still below the government's target of 90%.
The report highlights significant differences in channelization across different gambling verticals: sports betting channelization rates are between 92-96%, while online casino channelization rates are only between 72-82%. The regulatory body analyzed that the main reasons consumers turn to unlicensed operators include a richer selection of games, higher bonuses, and the inability to access licensed platforms due to the self-exclusion system (Spelpaus).
Gustaf Hoffstedt, the Secretary-General, stated: "The main issue in the Swedish gambling market lies with online casinos. About a quarter of online casino activities flow to the unlicensed market, which is unacceptable. For five years, the level of channelization has been consistently low, but regulatory measures are insufficient."
Later this month, gambling investigator Marcus Isgren will submit a proposal to revise the Gambling Act, making almost all unlicensed gambling activities illegal. However, the report also points out that the lack of attractiveness in the licensed market remains a key issue. Strict regulations have limited bonuses and loyalty programs, leading consumers to prefer the unlicensed market.
Hoffstedt warns: "If we do not reconsider the bonus policies and loyalty programs, future annual channelization assessments may still be unsatisfactory." The regulatory body calls for measures to make the licensed market more attractive while ensuring that consumers gamble in a legal, regulated environment.
