Svenska Spel CEO: Sweden is “reminiscent of the time before re-regulation”

The CEO of state-owned Svenska Spel, Anna Johnson, has criticised Sweden’s approach to tackling the unlicensed operators, while likening the sector today to the pre-2019 grey market.

Johnson cited Sweden’s disappointing channelisation rate as an example as to how the regulated market was falling below standards and expectations.

The Swedish government set a target of 90% channelisation when the market was re-regulated in January 2019.  

However, a report published by horseracing operator ATG in December estimated Sweden’s online channelisation rate to be as low as 70% in Q3 2024. 

ATG’s calculations put the channelisation rate for sports betting and online casino at 77% and 60%, respectively.

In an article on Svenska Spel’s website, Johnson said: “When the gambling market was re-regulated in 2019, the political goal was that at least 90% of gambling would be done by companies with a Swedish licence. This channeling goal was central to regaining control of the gambling market.  

“Six years later, channelling is below the target, and the trend is negative. In fact, Sweden is now in a situation reminiscent of the time before the re-regulation. 

“Unlicensed gambling companies are outside Swedish gambling legislation and lack a duty of care to prevent excessive gambling.

“They act in practice without supervision and offer games in ways that are not permitted under Swedish law. This makes these operators a significant risk,” she added.

Despite the lack of progress to prevent leakage, the Swedish government upped the GGR tax rate on operators from 18% to 22% in July 2024, which industry stakeholders said would lead to more players moving to the black market.

Speaking to EGR last April, Betsson AB CEO Pontus Lindwall said the hike would “not help regulated businesses in the country and would further fuel unregulated businesses”.

The CEO’s comments were also sparked by a radio documentary in Sweden that alleged unlicensed operators were targeting customers who had self-excluded via the Spelpaus.se register.

Johnson also highlighted recommendations made by Sweden’s National Gambling Industry Association (SPER) on how to stop unlicenced operators serving Sweden’s citizens.

The recommendations, first published in Swedish newspaper Dagens Industri in November, included a scathing assessment of the current situation, claiming the country’s regulator – the Swedish Gambling Authority – has “failed miserably” in its attempts to hit the 90% channelisation goal.  

Johnson threw her support behind one of the trade association’s recommendations to change Sweden’s gambling act from a directional criterion to a participation criterion.

Under the current directional criterion, the SGA assess whether an operator is actively targeting the Swedish market.

Markers for this include offering Swedish as a preferred language or accepting deposits in Swedish krona.

A participation criterion would instead focus on whether Swedish players have access to games offered by unlicenced operators, regardless of being targeted.

Johnson added: “This [change] would reduce the scope for interpretation, simplify supervision and give the Swedish Gambling Authority better tools to combat unlicensed operators.

“A participation criterion is therefore a more effective solution to strengthen the Swedish licensing system and protect consumers. 

“Six years into the new gaming market, this is an example of a measure that can and should be introduced quickly, and which would have a major impact on strengthening consumer protection.  

“Of course, more measures are needed to stop the unlicensed operators, and we can achieve this through continued cooperation between politics, authorities and the gaming industry. We all want a gaming market that protects both consumers and society, and sustainable gaming companies.” 

In October 2024, a review by Sweden’s National Audit Office deemed that the SGA was “not effective enough” in its role. 

So far this month, the SGA has banned two Curaçao-licensed operators, Goodwin NV and Versus Odds BV, for operating in the market without a licence.