“Drastic change” needed to arrest channelisation rate woes in Sweden, says LeoVegas sports head
Per Carlander urges the regulator and government to do more to combat the black market and better protect licensed operators
LeoVegas Group director of sport strategy Per Carlander has urged the country’s regulator to take more “significant actions” to target black-market operators in the Swedish market.
Speaking as part of an in-house interview, Carlander stressed the urgency for the authorities to clamp down on unlicensed firms as concerns over channelisation in the Nordic nation mount.
According to the Swedish Trade Association for Online Gambling (BOS), channelisation in Sweden has fallen to 77% since the market’s re-regulation in 2019, with that figure falling to 72% alone for online casino.
Carlander stressed that while the industry is more aligned on the black market, with unlicensed operators now a “common enemy”, there requires a “drastic change” to arrest the falling channelisation rate.
He said: “The regulator needs to take more significant actions to enforce regulations and target the unlicensed operators.
“Some of the largest online casino operators in Sweden are not licensed within the country, leading to a continuous decline in channelisation.
“If this trend isn’t stopped, channelisation will soon drop to levels seen before regulation was introduced, undermining its purpose.
“Licensed operators such as LeoVegas Group must be provided with fair market conditions to maintain a viable business, which includes ensuring high consumer protection. This situation must change,” he added.
Carlander also touched on the role of the Swedish government in supporting the industry, including plans to implement a four percentage point GGR tax hike to 22%.
The LeoVegas head pointed out that should that tax increase come into play, it would lead to licensed operators struggling to turn a profit and, in turn, prompt them to exit the market.
He said: “The government has struggled to prevent unlicensed casino operators from targeting the Swedish market.
“The government had previously aimed for a channelisation rate of 90% to minimise the negative effects of gambling, ensure a high level of consumer protection, safeguard government control and secure taxes. However, Sweden still has a considerable distance to cover to achieve these goals.”