It is no secret to every self-respecting iGaming personality that Sweden is a big market, one of huge potential. Swedish consultancy firm Mediavision has recently presented its own estimate of the market’s scale.
According to the consultant, between 200,000 and 230,000 Swedes gamble at online casinos every month. International operators have become more and more attractive to local players, which has turned the Swedish market into a highly competitive space.
Mediavision has pointed out that during the three months to March 31, 2017, as many as 27 online casino brands advertized their products on Swedish television. What is more, it turns out that iGaming ads represented “every tenth commercial minute” over the reviewed period.
Sweden-facing gambling operators have already yielded excellent results from their advertising push in the country. Mediavision has noted that major gambling brands Unibet and Betsson, which are among the biggest advertisers on Swedish television, had around 50,000 Swedish gambling customers per month during the first quarter of the year. It has also become known that gambling turnover is very high and growing.
The provision of gambling options in Sweden falls under the purview of a state-run monopoly. Regulated gambling operations are mainly conducted by Svenska Spel and entities licensed by it. According to a report by the country’s gambling regulator – Lotteriinspektionen – the country’s regulated market was worth SEK17.1 billion ($1.9 billion) in 2016.
However, local players can play online casino games on the websites of unlicensed gray market operators. As per Lotteriinspektionen’s report, foreign operators generated a total of SEK5.1 billion ($576.1 million) last year. Given the fact that it is almost impossible to track and estimate the scope of an unregulated market, the actual figure might be much bigger.
The gambling regulatory status quo is about to change in the Scandinavian country. A prolonged and comprehensive probe into the Swedish gambling industry, led by Lotteriinspektionen Director General Håkan Hallstedt, recommended the implementation of a licensing regime that would allow international operators to apply for a license and operate in a licensed environment.
Approved operators will have to pay an 18% tax on their gross gaming revenue. It is believed that once the country’s online gambling market is regulated, the larger portion of Swedes will opt for licensed operations. According to initial forecasts, the new regime may come into effect on January 1, 2019.
If this happens, Sweden will become the second Scandinavian country to scrap its monopoly system after Denmark. The latter regulated its iGaming market in 2012, a decision that proved a very positive one for the country’s gambling industry.
And if Denmark has already embraced the licensing regime and Sweden is about to do this, Norway and Finland still seem more comfortable with their monopoly systems. According to a recent report compiled by Finnish market research firm Taloustutkimus, 66% of all interviewees preferred the current gambling status quo in the country to a more liberal licensing regime that would allow international companies operate in the local market.
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