Sweden’s ATG Highlights Surge in Illegal Gambling, Calls for Urgent Action

Sweden’s Alarming Rise in Illegal Gambling: ATG’s Call for Decisive Measures

Sweden’s Aktiebolaget Trav och Galopp (ATG) is raising the alarm over an “alarming” spike in illegal gambling activities, with new data revealing a staggering ten-fold increase in traffic to unlicensed betting websites since 2019. This revelation underscores a significant challenge in Sweden’s battle against unregulated online gambling.

The latest data released by ATG shows that the channelisation rate for regulated online gambling in Q3 fluctuated between 70% and 82%, depending on the type of gambling. While online sports betting maintained a higher channelisation rate of 88%, online casino activities saw a lower rate at 74%. This decline in channelisation rates across various sectors indicates a concerning shift of players to unlicensed platforms.

ATG’s research further estimates that nearly half of all online casino spending in Sweden occurs on illegal gambling sites. These findings are based on the assumption that spending per visit is significantly higher on unlicensed sites compared to licensed ones. When this spending assumption is increased, the channelisation rates across the market plummet, highlighting the extensive reach of unlicensed gambling.

Investigations by ATG identified two primary groups, Infiniza Limited and North Point Management Ltd, accounting for 60% of the illegal gambling traffic in Q3. Moreover, 18 of the 20 most visited sites in this period featured game providers similar to those on licensed platforms, yet none appeared on the Spelinspektionen’s banned list.

Despite the absence of direct deposit options from Swedish bank accounts via BankID on these sites, their popularity remains high. The total number of visitors to illegal gambling sites was estimated at over one million in Q3, a significant drop from the 1.5 million peak in Q2 but still alarmingly high compared to under 100,000 at the onset of the legal market in Q1 of 2019.

In response to these troubling trends, ATG CEO Hasse Lord Skarplöth has pledged to intensify efforts to combat illegal gambling in Sweden. The ATG is committed to supporting a healthier gaming market and reducing the prevalence of problem gambling linked to unlicensed sites.

As the government contemplates increasing tax rates from 18% to 22% of gross gaming revenue to address channelisation concerns, the gambling industry is also grappling with broader economic challenges. Despite these, ATG reported growth in revenue and net profit in Q3, underscoring the resilience and potential of the regulated market.

ATG’s report comes at a critical time, highlighting the urgent need for effective regulatory measures to safeguard the Swedish gambling market’s integrity and protect consumers from the dangers of unregulated online betting.