ATG Issues Stern Warning on Soaring Unlicensed Gambling Activity in Sweden

Prepare to be alarmed as Aktiebolaget Trav och Galopp (ATG), the renowned Swedish horseracing betting operator, reveals a startling revelation. The traffic directed towards unlicensed gambling sites in Sweden has skyrocketed by a staggering factor of ten since the inception of the regulated gambling market in 2019. This exponential surge raises critical concerns about the prevalence of unlicensed gambling and its consequences.

ATG (Aktiebolaget Trav och Galopp), the prominent Swedish horseracing betting operator, has issued a resounding warning about the soaring levels of traffic to unlicensed gambling websites. According to ATG’s findings, the rate of traffic directed towards these illicit platforms has increased tenfold since the launch of Sweden’s regulated gambling market in 2019. This alarming surge in unregulated gambling activity has raised significant concerns about the efficacy of the country’s regulatory measures.

ATG’s research provides critical insights into the state of channelisation rates within the Swedish gambling market. In the third quarter (Q3) of the year, channelisation rates for regulated online gambling as a whole were estimated to be between 70 and 82 percent. Specifically, online sports betting achieved a channelisation rate of 88 percent, while online casino gambling recorded a rate of 74 percent. These figures are calculated under the assumption that the average spending per visit on unlicensed sites is ten times higher than on licensed platforms.

The consequences of this unlicensed gambling surge are not to be underestimated. ATG estimates that the unlicensed gambling market in Sweden is currently worth between SEK 3.4 billion and SEK 6.7 billion (approximately €585.6 million) annually. This substantial figure highlights the substantial financial flow to unregulated entities.

Intriguingly, ATG has identified Infiniza Limited and North Point Management Ltd as the primary contributors to illegal gambling traffic in Q3. Notably, the most frequented unlicensed site during this period was Infiniza’s Unlimitcasino.com, with 150,890 visits, followed closely by Infiniza’s Refuelcasino.com with 122,135 visits, and North Point’s Quick.bet with 108,290 visits.

Remarkably, none of these highly-visited sites appear on the national gambling regulator Spelinspektionen’s blacklist. Moreover, 18 of the top 20 unlicensed sites had the same game providers as their licensed counterparts. A notable shift observed in Q3 was that these sites ceased accepting direct deposits from Swedish bank accounts via BankID, a method that was operational in Q2.

ATG’s CEO, Hasse Lord Skarplöth, expressed deep concern over these findings, stating, “The results of our quarterly surveys are alarming and indicate that a significant percentage of problem gamblers in Sweden are linked to unlicensed gambling sites.” Skarplöth emphasized ATG’s commitment to fostering a safer gambling environment.

Despite these challenges, the Swedish gambling revenue remained relatively steady in Q3, amounting to SEK 6.7 billion (approximately €573.8 million), mirroring the figures from Q2. Notably, online casino and sports betting collectively generated SEK 4.25 billion, a 1.4 percent year-on-year decline, while revenue from state-owned lotteries and slots dipped by 0.1 percent to SEK 1.4 billion. In contrast, land-based casino revenue surged by an impressive 31 percent to SEK 81 million. Non-profit lotteries experienced an 8.26 percent drop in revenue, and revenue from community games and bingo halls remained stable at SEK 49 million.

Meanwhile, Camilla Rosenberg, the director-general of Spelinspektionen, has embraced proposed amendments to Sweden’s Gambling Act. These proposed changes, slated to take effect on April 1 next year, are aimed at enhancing player protection. Key proposals include the requirement for customers to provide written approval before engaging in telephone-based gaming and granting gambling operators access to customer data concerning finance and health to combat excessive gambling. The amendments also introduce higher fines for operators breaching the Money Laundering Act.