Sweden’s ATG reports increase of illegal market with factor 10 since 2019
•
19 Dec 2024 •
Reading time: 2 minutes Swedish Horseracing monopolist AB Trav Och Galopp (ATG) conducted research showing that traffic to unlicensed gambling sites has increased tenfold since 2019. Sweden’s Channelization rate has been estimated to be between 70% and 82% in Q3 2024.
This report estimate has been undercutting the last channelisation rate of Sweden’s Spelinspektionen in its October report. Still, ATG’s latest numbers are higher than it’s 68% – 81% estimate in Q3 last year, which the operator mentions that the channelization rate is stabilizing. Unfortunately, it is still falling short of the government 90% target for licensed operators in Sweden.
The report is tracking visitor traffic to unlicensed domains in Sweden. Even though it has tenfolded since 2019, the biggest impact lies within the channelization of Sports and Casino in the scandinavian country.
“The government sets unreasonable demands for licensed operators which prove to be counterproducive and allowing the illegal market to grow” – ATG CEO Hasse Lord Skarplöth
“Unlicensed gambling is estimated to have a gross turnover of up to SEK150 billion (£10.76 billion/€12.99 billion), equivalent to the cost of running all Swedish primary schools,” Skarplöth said.
Channelisation rate even lower for online casinos.
Unfortunately the rates discovered are even lower when looking purely at the casino market. Here is rate is around 60-75% for Q3 2024. Sports betting on the other hand is a bit better off with 77% – 87%. This increased rate is explained by the assumption that players are spending 10 times more with illegal websites while the lower end of the range corresponds with the assumption that players are spending 20% more with illegal websites.
Strangely enough, of the top 20 websites consumers visited, 18 were on the same platform as some licensed operators. There were even 8 websites that offered direct deposit and withdrawal options from Swedish Banks, while just 2 appeared on the notorious blacklist of the Spelinspektionen.
Meaning that the Swedish Gaming Commission still has a lot of work on its plate.
“ATG will do what we can to contribute to the fight against the unlicensed gambling companies continuing day by day, month by month and until the licensed companies have a monopoly on gambling in Sweden,” Skarplöth concluded.