Swedish trade body issues warning around "critically low" channelisation rate
General secretary Gustaf Hoffstedt urges the government to change its approach as three in 10 consumers head to black market for online casinos
The Swedish Trade Association for Online Gambling (BOS) has warned against the dangers of the black market following a review into the channelisation rate in the market.
The survey, which was conducted by SKOP for the BOS, found that the Swedish channelisation rate was around 77%.
The survey comprised of 9,850 individuals and was carried out between 22 February and 21 March 2023.
Of those surveyed, 3,000 respondents said they participate in online gambling at least once per quarter.
Breaking the 77% figure down by vertical, the survey found that the sector with the best channelisation rate was lotteries and number games at 91%, with the worst sectors being online casino and poker at 72%.
The channelisation rate for the sports betting sector was broken up between online horseracing betting and general sports betting. Channelisation for horseracing was 89% and 84% for general sports betting.
The Swedish government’s aim is for at least 90% of Swedish players to gamble with licensed operators.
Gustaf Hoffstedt, general secretary of the BOS, said: “There is no doubt that the Swedish licensing system is in a serious situation. Far too much effort has been spent on the part of the state to force the licensed gambling companies to implement measures that have not been well received by gambling consumers.
“I’m thinking of things like Sweden’s de facto ban on bonuses and the ban on betting in lower football divisions.
“This has not been appreciated by the gambling community; around a quarter of whose gambling now leaks out of the licensing system into the unlicensed gambling market. In the unlicensed gambling market, both consumer protection and tax payments to the state are non-existent.”
Hoffstedt laid out proposals that the government could explore to increase the channelisation rate in the market.
He commented: “If we are to succeed in reversing this development, a shift in mentality on the part of the state is required, from hunting, fining and limiting the range of games for licensed gambling companies to hunting the unlicensed ones instead.
“It is possible to reverse the trend, and from the industry’s side, we are prepared to join hands with the state to achieve the goal of improved channelisation in Sweden,” Hoffstedt concluded.