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The Swedish Gambling Authority (SGA) has reported that fewer players stayed within the licensed market last year, raising questions about the balance of regulation and competitiveness.
A slight drop in regulated play
The numbers reveal a small but telling shift.
The SGA calculated a channelisation rate of 85% in 2024, compared with 86% the year before. Channelisation measures the share of gambling taking place with licensed operators, and is viewed as a key test of the licensing system Sweden introduced in 2019.
The regulator based its findings on player surveys and internet traffic data, combining the two sources to capture how Swedes are actually gambling. According to the results, 96% of players placed at least one bet with a licensed operator, though a portion of play continues to flow offshore.
Betting stronger than online casino
Where players spend makes a difference.
The report shows that sports betting remains more effectively channelised than online casino, with casino activity accounting for most of the leakage outside the regulated market.
Camilla Rosenberg, Director General of the SGA, noted that most gambling still happens through licensed companies. She added that the majority of unlicensed traffic comes from firms not actively targeting Sweden, while a smaller share stems from sites the regulator has identified as illegally operating in the market.
To counter this, the SGA continues to issue prohibition orders against operators directing services at Swedish players.
A revised approach to measurement
The regulator has sharpened its tools.
The SGA updated its methodology to blend survey responses with direct traffic analysis. This adjustment aims to create a clearer picture of gambling flows and reduce the risk of relying on one source alone.
While the authority acknowledged each method has its limits, combining them has provided a more consistent baseline for measuring channelisation across the sector.
Policy changes on the horizon
Reform could tighten the rules further.
Later this month, government investigator Marcus Isgren will present recommendations to expand the Gambling Act. His proposal is expected to make almost all forms of unlicensed gambling a criminal offence.
The move would strengthen enforcement against offshore operators. However, licensed companies continue to face strict regulations on bonuses and loyalty schemes, restrictions that some argue weaken the appeal of the regulated market compared with unlicensed sites.
Industry calls for political action
Operators see online casino as the problem area.
Gustaf Hoffstedt, secretary general of industry body BOS, said the new assessment highlights the ongoing challenges in the online casino segment.
Hoffstedt stated:
“With this assessment, the SGA confirms that Sweden’s major problem in the gambling market is online casino. It is unacceptable that around a quarter of all online casino gambling is leaking out of the licensed market.”
He criticised the lack of political response in recent years, arguing that continued inaction risks further erosion of regulated play.
Striking a balance for the future
Control and competitiveness remain in tension.
With channelisation standing at 85%, most gambling in Sweden still flows through licensed operators. Yet the slight decline from 2023, coupled with persistent leakage in online casino, illustrates the regulator’s ongoing challenge: how to keep the market attractive for consumers while upholding player protection and regulatory control.
Source: NEXT.io
