International online gambling operators increased their market share in Sweden in 2016, according to local consultancy firm Mediavision AB. Major gambling groups such as bet365, Betsson, and Kindred Group, which operates the Unibet brand, are said to be attracting Swedish players mainly with online casino games or, in other words, products that are not available with local operators.
The current Swedish regulatory framework is rather fuzzy when it comes to iGaming. Online gambling activities conducted by international companies are not explicitly illegal, under the country’s existing laws. However, unlicensed operations have long been heavily scolded upon by local authorities and authorized operators.
There are several state-owned entities that operate gambling options, both land-based and on the Internet, in Sweden, Svenska Spel being the largest one. Word has been spread that the long-anticipated results from a governmental review of the Swedish gambling industry are to be made known by the end of the quarter. According to Mediavision, the country’s lawmakers may finally be ready to embrace market re-regulation that would allow foreign gambling operators to apply for local licenses. The consultancy firm has also noted that Sweden’s regulatory system may be very similar to the one introduced and implemented in Denmark several years ago.
Mediavision has estimated that foreign gambling operators have grown significantly year-over-year, particularly when compared to domestic operators. The likes of Unibet, bet365, and Betsson saw a 16% rise in their turnover last year, while Svenska Spel and the other locally regulated entities grew only 2% in 2016.
As mentioned above, online casino was international operators’ most popular offering last year. Yet, their online sports betting offering also enjoyed popularity with Swedish customers. Although Svenska Spel was the largest betting operator in the country in terms of active bettors in 2016, foreign companies drew higher value clientele.
As pointed out by Mediavision, wagers placed on unlicensed sportsbooks represented 70% of local bettors’ monthly spending on that type of offering during the second half of 2016. However, their customer base accounted for 35% of all local bettors. International operators had between 70,000 and 120,000 local customers every month during the six-month period ended December 31, 2016. Foreign businesses are expected to further increase their share in the local market as they are offering gambling options through different channels, including mobile.
Sweden has long been a highly attractive destination for online gambling operators and it is believed that if and when regulated, the country will draw some of the major players on the iGaming space. It is believed that a regulated Swedish market will be a particularly lucrative one. Statistics show that more than 80% of the country’s population uses the Internet daily and that the number of people accessing the Internet via their hand-held devices is growing constantly. That combined with the fact that Sweden is among the European countries with the highest average income could create a very friendly environment for building a stable iGaming market.
