Sweden’s Online Gambling Channelisation Rate Hits 86%

Sweden has reached an impressive 86% channelisation rate for online gambling in 2023, according to Spelinspektionen. This figure surpasses previous estimates, showing that most Swedish players are choosing licensed operators over unlicensed platforms. Despite the rise in black market activities, the growth in regulated gambling reflects effective regulatory efforts to safeguard players. Discover the strategies behind Sweden’s rising channelisation rate and how it impacts the country’s gambling landscape.

Sweden’s Online Gambling Channelisation Rate Reaches 86% in 2023, Surpassing Previous Estimates

The Swedish gambling regulator, Spelinspektionen, has revealed that the country’s online gambling channelisation rate reached 86% in 2023. This figure represents the proportion of online gambling that takes place through licensed operators within Sweden, highlighting the effectiveness of the country’s regulatory framework. The latest rate surpasses the 77% reported for 2022 and exceeds forecasts from several local operators, including Aktiebolaget Trav och Galopp, which had estimated a rate between 69% and 82%.

However, despite this progress, unlicensed gambling remains a concern. Spelinspektionen estimates that black market sites generated approximately SEK 2.5 billion (€220.2 million) in turnover in 2023, compared to SEK 17.3 billion for licensed operators. It’s important to note that these figures assume players wager the same amount per visit on both licensed and unlicensed sites. Spelinspektionen acknowledges that this assumption may not reflect reality, as betting behavior can vary significantly between different platforms.

The 86% channelisation rate was calculated using various methods, including player surveys. In one survey, conducted between June and July 2023 with 4,000 respondents, 97% of participants indicated they gambled with a licensed operator during their last online gaming session. Additionally, 83% of total bets and wagers were made with websites approved to operate in Sweden.

Spelinspektionen’s data revealed a disparity in channelisation rates across different gambling types. For sports betting, licensed websites attracted 99% of players and 97% of wagers, showcasing a high level of compliance in this sector. In contrast, the online casino sector saw 96% of players using licensed platforms, but only 79% of total wagers were made on approved sites. The regulator noted that this variance points to a potential challenge in steering all gambling activities towards regulated operators.

Skin betting—where players use in-game currencies to gamble, often on esports—remains a significant issue in Sweden. When skin betting is excluded, the channelisation rate for approved sites improves to 84%, up from 73% when all forms of gambling, including skin betting, are considered. Nearly 49% of visits to unlicensed websites involved skin betting, indicating that this activity is a major driver of unregulated gambling in the country.

Spelinspektionen also gathered data on website traffic, revealing that 78% of online casino visits were to licensed sites, while 96% of sports betting website visits were compliant. To cross-verify these findings, the regulator used additional data from H2 Gambling Capital, which estimated Sweden’s channelisation rate to be even higher at 92%. According to H2, 93% of online betting turnover in Sweden came from licensed sites in 2023, while online casino turnover was slightly lower at 87%.

Despite these positive indicators, Spelinspektionen admitted that the actual channelisation rate might be lower. The regulator’s analysis suggests that if players wager more on black market sites than on licensed ones, the rate could be as low as 78%. The regulator emphasized, “Betting generally has a higher channelisation rate than online casinos. Additionally, we observe that a small percentage of players choose unlicensed websites, often wagering more than those using licensed platforms.”

Sweden’s 86% channelisation rate in 2023 is a testament to the country’s robust regulatory efforts to promote a safe and regulated online gambling market. While the figure surpasses previous estimates, the challenges posed by unlicensed gambling—especially skin betting—highlight areas that require further action. The success in steering most players towards licensed operators showcases the effectiveness of Spelinspektionen’s regulations. However, as the data suggests, continuous vigilance is essential to combat the influence of the black market and ensure the long-term health of Sweden’s gambling industry.