Swedish Gambling Industry Warns of Declining Channelisation

Sweden’s Gambling Authority (Spelinspektionen) has released its latest market assessment, estimating that 85% of gambling in 2024’s competitive market took place with licensed operators. While only a slight drop from 86% in 2023, the decline has prompted a strong reaction from the Swedish Online Gambling Trade Association (BOS), which warned the government is still falling short of its 90% channelisation target.

Sweden’s Gambling Authority (Spelinspektionen) has released its latest market assessment, estimating that 85% of gambling in 2024’s competitive market took place with licensed operators. While only a slight drop from 86% in 2023, the decline has prompted a strong reaction from the Swedish Online Gambling Trade Association (BOS), which warned the government is still falling short of its 90% channelisation target.


Majority of Gambling Remains Regulated

In a press release on Monday, Spelinspektionen emphasized that the majority of Swedish gambling continues to take place within the licensed market.

“An estimated channelisation rate of 85% in 2024 shows that most gambling activity occurs with licensed operators,” said Director General Camilla Rosenberg. She added that traffic to unlicensed websites represents only a small fraction of sites formally targeted by prohibition orders.

The regulator explained that its calculations this year were based on player surveys and internet traffic analysis, with updated methodology to improve accuracy.

According to its survey, 96% of Swedish players reported gambling with licensed operators in 2024, though results varied across gambling types. Sports betting typically showed higher channelisation rates than online casinos.

The report reiterated that one of the key goals of Sweden’s 2019 gambling reform was to bring the market under state supervision, limiting the reach of offshore operators.


Industry Concerns Over Online Casino Leakage

BOS responded sharply, saying the regulator’s estimates highlight persistent structural issues — especially in online casinos.

“Spelinspektionen’s 85% estimate represents a decline from last year’s 86%,” BOS noted.

The group also highlighted that consulting firm H2 Gambling Capital, excluded from this year’s assessment, had recently cut its own Swedish estimate from 91% to 72%.

BOS stressed that while sports betting and horse racing show channelisation rates of 92%–96%, online casino sits far lower at 72%–82%, meaning roughly a quarter of online casino gambling still occurs outside the licensed market.

Secretary General Gustaf Hoffstedt argued the data confirms long-standing flaws in Sweden’s regulatory model:

“The main problem is online casino. A quarter of play takes place outside the licensed market, and policymakers have tolerated this for half a decade without effective measures.”

Players, he added, often choose offshore sites for greater game variety or because of restrictions linked to Sweden’s self-exclusion program Spelpaus.se.


Regulatory Debate Intensifies

Later this month, government investigator Marcus Isgren will present proposals to expand the Gambling Act, potentially criminalising almost all unlicensed gambling in Sweden. BOS welcomed the move but warned enforcement alone is not enough.

“This reform is a step in the right direction,” said Hoffstedt. “But over-regulation makes the licensed market unattractive. Unless bonus bans and loyalty restrictions are reviewed, next year’s channelisation figures will be equally disappointing.”

Before the 2019 licensing regime, less than half of Swedish gambling took place within the regulated market. Initial reforms pushed the rate close to 90%, but progress has since stalled.

The latest assessment is likely to fuel debate over whether Sweden’s strict regulatory model is inadvertently pushing players toward offshore operators. As the government seeks to balance consumer protection, tax revenue, and competitiveness, calls for a re-evaluation of the framework are set to grow louder.

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