Black market is “large and relatively easily accessible”, claims Swedish regulator
SGA publishes fresh research highlighting key reasons why consumers use offshore sites, as it lays out plans to fight back against illegal operators and supplier partners
The Swedish Gambling Authority (SGA) has said the black market in the country is “large and relatively easily accessible”, as part of a report into the illegal sector.
The 65-page document, released today, 9 April, included a host of recommendations for the Swedish government to help the regulator quell the black market.
While the SGA provided no update to its previous 86% channelisation rate estimate from last year in the report, the body said it would publish its evaluations during Q2.
However, the SGA noted that due to multiple factors it was not possible to “accurately calculate” the total consumer spend in the black market, but did state the unlicensed spend is coming from a “relatively small group of players”, albeit high-spending ones.
The regulator did highlight that the majority of black market sites are not directly targeting Swedes.
As an example, the SGA revealed 13% of unlicensed operator traffic went to sites that held a licence in another European Union member state.
The regulator said: “Companies with a licence in another EU country generally always market themselves in English and the gaming sites often lack other clear indications that they are targeting Swedish players.
“Overall, they operate in a grey area where it is difficult for the Swedish Gambling Authority to claim that the operations are targeting Sweden according to the Gambling Act.”
On a large scale, 45% of traffic was coming from operators with licences in “third countries” or jurisdictions, including Curaçao and Anjouan. The SGA said Curaçao-licensed companies accounted for 38% of all unlicensed traffic.
Looking at reasons why players use unlicensed sites, the SGA stated the prevalence of strong bonuses, VIP schemes and a lack of account restrictions were key incentives.
Additionally, customers who have self-excluded via the Spelpaus register are able to play with offshore businesses, something the SGA noted was “problematic”.
The ability to use cryptocurrencies, as well as a general unawareness of what constitutes an unlicensed operator, were also highlighted as drivers.
The SGA noted that offshore businesses were able to attract players via affiliates and social media ads, which the regulator is currently developing a framework to shut down.
Following the publication of the report, the SGA said it would submit proposals to the government to bolster its powers to push back against the black market.
The regulator will also look to ban payment providers that support offshore businesses, develop a stronger channelisation methodology, target licensed suppliers if games are on illegal sites and continue to educate Swedes on the dangers of the black market.