Sweden’s gambling market saw a 3% increase in revenue during the first half of the year, figures released by the country’s gambling regulator, Lotteriinspektionen, showed. An important highlight from the authority’s half-year report was the fact that Sweden’s unregulated online gambling market registered a double-digit growth during the reviewed period.
News about the continued growth of unlicensed operations in the Scandinavian nation come at a time when the government is preparing a new gambling regulatory framework that would allow international iGaming operators to apply for licenses and operate in a legal and regulated environment. Sweden’s new gambling law is expected to be adopted in 2019.
Half-Year Figures
The total amount of SEK11 billion was generated in gambling revenue during this year’s first half, the Swedish Gambling Authority reported. The figure reflected an increase of 3% from the same six months of the previous year. Licensed Swedish gambling operators generated the amount of SEK8.4 billion, which showed almost no change from the prior-year period.
On the other hand, unlicensed participants in the nation’s gambling industry saw a 17% increase in gambling revenue from Swedish players to SEK2.7 billion. Here it is important to note that the aforementioned figure was drawn from financial reports of international operators known to be targeting local gambling customers. In other words, Sweden’s unregulated market might be much larger.
Svenska Spel, Sweden’s largest state-run gambling operator saw a 2% decrease in its half-year revenue. It generated revenue of SEK4.3 billion. Revenue from the operator’s land-based gambling operations dropped 5% year-on-year, while online gambling services saw a 12% decrease in revenue.
The Power of Gambling Advertising
Latest gambling revenue figures show that international online gambling operators are targeting Swedish players heavily and that they enjoy great popularity among representatives of that particular gambling group.
That trend could be explained with a number of reasons. The online gambling sector is growing rapidly almost everywhere in the world and Sweden is apparently an active participant in that growth. The demand for iGaming services could also be justified with the widespread tech-savviness of the Swedish population.
In addition to the above-discussed, here it is also important to note that international gambling operators have also been advertising their services quite actively in Sweden. According to a 2016 report by Swedish media consultant Mediavision, gambling ads by foreign gambling operators accounted for 10% of all ads broadcast on Swedish television in 2016. In comparison, such ads represented just 3% of all ads back in 2013.
Mediavision pointed out that domestic operators were, too, heavily reliant on television as an advertising channel, but not as much as their foreign rivals. The consultancy firm found that 75% of all gambling ads on Swedish television were ones promoting services provided by international, and unlicensed, gambling operators.
