Sweden Faces Growing Challenge with Unlicensed Gambling Sites

Traffic to Unlicensed Sites Soars

The latest report, published on December 4th, highlights the concerning growth of traffic to unlicensed gambling platforms in Sweden. This surge in visitors has had a significant impact on the channelisation rate, particularly in the areas of sports betting and online casino operations. ATG’s figures, which estimate that the channelisation rate fell between 68% and 81% in the same period last year, suggest that the rate has been stabilizing, although it still does not meet the government’s ambitious goals for the market.

Sweden’s gambling regulator, Spelinspektionen, had previously reported a channelisation rate of 86% in its October findings. However, the most recent numbers from ATG indicate that even at the upper end of their estimates, the country’s gambling sector is still underperforming relative to these targets.

The Financial Impact of Unlicensed Gambling

Hasse Lord Skarplöth, CEO of ATG, strongly criticized the Swedish government’s approach to regulating licensed operators, claiming that the current framework is “counterproductive” and failing to curtail the growth of the illegal market. According to Skarplöth, unlicensed gambling now generates a gross turnover of up to SEK150 billion (£10.76 billion / €12.99 billion / $13.64 billion), an amount comparable to the entire cost of running Sweden’s primary schools.

“Making such high demands on licensed gambling companies, while allowing these enormous sums to escape regulation and control, is both unreasonable and counterproductive,” Skarplöth remarked.

Online Casino Market Particularly Affected

The report also draws attention to the worst-performing sector within Sweden’s gambling industry: online casinos. Channelisation in this market ranged from 60% to 75%, considerably lower than the sports betting sector, which saw a channelisation range of 77% to 87%.

The report’s estimates suggest that players are spending significantly more with unlicensed sites than with licensed operators. At the lower end of the spectrum, it is assumed that consumers are spending up to 20 times more with illegal sites, while at the upper end, the number jumps to 10 times more.

Further analysis revealed that a significant portion of the unlicensed sites operates on the same platforms as licensed Swedish gambling operators. Of the 20 most visited unlicensed websites, 18 had the same platform providers as those within the legal system, and eight offered direct deposit and withdrawal options from Swedish banks. However, only two of these sites appeared on Spelinspektionen’s official ban list.

Top Unlicensed Sites Gaining Traction

The report also identified the most popular unlicensed gambling websites, with Unlimitcasino.com topping the list, attracting 159,320 total visitors in Q3. Refuelcasino.com followed with 129,540 visitors, while Luckyjungle.com ranked third with 114,329 visitors. All three of these sites are operated by Infiniza Limited.

Notably, Luckyjungle.com, which entered the Swedish market in Q3 of the previous year, saw the highest growth in visitor numbers. On the other hand, traffic to both Unlimitcasino.com and Refuelcasino.com has begun to decline as 2024 progresses.

ATG’s Commitment to Regulating the Market

Despite the challenges posed by unlicensed operators, ATG remains committed to working with regulators to fight illegal gambling activities. Skarplöth expressed his company’s determination to continue contributing to the battle against unlicensed gambling until licensed operators regain a monopoly on the Swedish market.

“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.