18.03.2024

by Kajetan Sawicz

ATG Raises Concerns Over Declining Swedish Gambling Channelization

Aktiebolaget Trav och Galopp (ATG), Sweden’s former horse racing monopoly, has expressed serious concerns about the ongoing challenges posed by unlicensed gambling operators in the country.

Channelization Goals Falling Short

Sweden’s ambitious target to achieve a 90% channelization rate towards legal gambling operations seems increasingly unattainable. ATG’s latest quarterly report for Q4 2023 reveals a troubling trend, with the channelization rate dipping further from the already concerning figures of 70% to 82% reported in Q3. The updated figures suggest a continued decline, with rates now estimated between 69% and 82%.

ATG’s critique extends to the Swedish government’s current regulatory framework, which appears to be insufficient in curtailing the influence of unlicensed operators. The unchecked growth of this sector not only poses a significant risk to the integrity of the legal gambling industry but also to vulnerable groups and individuals susceptible to gambling addiction.

Hans Lord Skarplöth, CEO of ATG, has voiced the urgent need for additional measures to combat the unregulated gambling market. Surprisingly, it has been found that some of the leading unlicensed betting platforms are powered by the same technology providers that service the licensed Swedish market. In response, Skarplöth advocates for a more proactive role from financial institutions, urging banks to block transactions with unregulated gambling entities to stem the tide of customers towards these illegal operations.

Our Comment on the Article

The ongoing struggle against unlicensed gambling in Sweden is a stark reminder of the complexities involved in regulating the digital gambling landscape. ATG’s call to action highlights the need for a collaborative approach, involving not only regulators but also financial institutions, to effectively mitigate the risks associated with illegal gambling operations. As the industry evolves, so too must the strategies employed to safeguard it, ensuring a safe and fair environment for all participants.

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