Sweden gamblers largely unaware of which sites are legal
Recent findings reveal that a staggering 72% of Swedish gamblers are uncertain about which products are licensed and which are illegal, according to a comprehensive survey conducted by Spelinspektionen.
The survey, executed by Enkätfabriken in April on behalf of the Swedish gambling authority, indicates that a significant majority of respondents cannot discern between licensed and unlicensed gambling options in the market.
When asked about the importance of local licensing in their choice of gambling operators, 42% of participants identified this as a crucial criterion, marking an increase from 28% in the previous year’s assessment.
However, opinions on the benefits of playing with licensed operators were divided; 47% believed there was an advantage to playing with licensed brands, while an equal percentage remained uncertain. Only 6% thought there was no benefit at all.
Younger respondents displayed a concerning lack of awareness, with just 27% of individuals aged 18 to 19 indicating they would prioritize licensed operators. In contrast, 52% of respondents aged 65 and above regarded a local license as essential.
Unveiling a broader demographic engagement, the survey included 1,644 participants, distributing responses approximately evenly across genders with 53% male and 47% female. Among these, 1,164 individuals had engaged in gambling activities over the past year.
Government Action Needed to Support Licensed Operators
Respondents who chose not to gamble on unlicensed websites cited major concerns such as the fear of non-payment, insecure data handling, and the increased risk of gambling-related problems. Notably, 8% admitted to using illegal sites as a means to evade taxes on their winnings.
In discussions with iGB, Gustaf Hoffstedt, Secretary General of the Swedish Trade Association for Online Gambling (BOS), emphasized the need for improved public perception regarding the advantages of licensed operators. He urged the government to enhance the appeal of licensed gambling offerings.
“The industry must collaborate with the SGA to effectively communicate the benefits of engaging with licensed entities,” Hoffstedt stated.
Past considerations by Spelinspektionen to implement an approval seal for licensed sites to bolster awareness were abandoned due to the risk of counterfeit seals from illegal operators. However, licensed gambling entities frequently display the SGA logo prominently on their landing pages as a mark of safe gambling practices.
Concerns Over Declining Channelization Rates
According to recent insights from the Swedish horseracing operator ATG, the online channelization rate, which measures the percentage of players engaging with licensed operators, plummeted between 69% and 82% across the market.
The Swedish regulator has historically aimed for a 90% channelization rate. However, loopholes in current gambling legislation have allowed illegal operators to bypass restrictions by targeting players in English and processing transactions in euros rather than Swedish currency.
In February, governmental reviews were initiated to amend these gambling regulations. Yet, Hoffstedt expressed skepticism regarding the likelihood of reversing the downward trend in channelization in the near future.
Shifts Toward Home Gambling
The latest survey data reveals that an overwhelming 91% of gamblers engaged in online activities from home, a slight uptick from 2023’s 85%. In contrast, the proportion of retail gamblers, excluding casinos, has decreased to 18%, down from 21% year-on-year. On-premises casino gambling remains static at 2% of respondents.
The decision to close Svenska Spel’s last land-based casino, announced in April, underscores the shifting landscape of gambling preferences, indicating that physical venues are becoming less relevant.
Awareness of Self-Exclusion Options
In terms of responsible gambling practices, three out of five participants reported awareness of the national self-exclusion platform, Spelpaus.se. However, only a mere 6% had utilized the service, with 34% indicating they were unaware of it entirely.
A gender disparity emerged, as 43% of female respondents identified as unaware of the self-exclusion program, compared to 26% of males. Among those who self-excluded from legal gambling sites, 63% cited excessive play as the reason, while 36% expressed frustration with the prevalence of gambling advertisements.
Decline in Social Gambling Motivations
Although entertainment remains the primary driver for gambling, the inclination to gamble for social interactions has waned significantly. Only 12% of participants under 29 cited social reasons for gambling, with this percentage dropping to 7% among the 30-to-49 age group and further decreasing to 4% for those aged 65 and above.
Overall, 69% of respondents acknowledged that enjoyment and entertainment were their main motivations for gambling—an increase from 61% the prior year. Additionally, 40% indicated that the potential for substantial winnings was a key factor, up from 30% in previous surveys.
Notably, only 15% of participants reported gambling with the primary goal of making money, a decrease from 18% the previous year. Furthermore, only 11% of respondents in 2024 considered the variety of gaming products offered as a significant factor in their gambling choices, a decline from 33% in the preceding year.
Growing Interest in Sports Betting
In 2024, just 3% of gamblers reported betting daily, while 33% engaged in weekly gambling activities and 28% did so monthly. Encouragingly, 84% of respondents expressed participation in lottery or number games, an increase from 74% in 2023.
Moreover, sports betting has gained traction, rising from 15% to 19% in 2024, with football and ice hockey remaining the most favored sports among bettors. Online casino betting, too, increased by 2% year-on-year, reaching 12%.
For individuals who had not participated in gambling activities over the past 12 months, nearly half (45%) reported they never won, while only 4% indicated they had ceased participating due to significant losses.
