Swedish Restrictions Hurting Economy, Says BOS Report

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Sweden’s economy would benefit from easing the restrictions that drive players to the black market, according to a new report commissioned by the Swedish Trade Association for Online Gambling (BOS).

Using data from several sources, including the Swedish Treasury, the report says Swedish gambling licensees employ 4,200 people and the industry’s contribution to gross domestic product (GDP) is estimated to be just under SEK10bn (€1.9bn). Employer contributions and preliminary payroll taxes from the industry amount to SEK533m annually.

Data from state-owned operator Svenska Spel included in the report indicates gambling companies' sports sponsorships total SEK800m a year.

However, if the share of licensed online gambling in Sweden increases from 80 to 90 percent of the market, more than 460 more jobs would be created, gross domestic product (GDP) would grow by SEK1.1bn, and an additional SEK59m in employer contributions and preliminary tax would be paid, according to the report.

“It is our hope that this report will get more people interested in the gaming industry's contribution to Sweden, as well as the still untapped opportunities that exist for the politician who works for the inclusion of the gaming industry in Sweden's business policy,” BOS secretary general Gustaf Hoffstedt said.

The report estimates the Swedish grey and black markets will generate revenues of just over SEK21bn between 2021 and 2025 if action is not taken to ease restrictions.

Nima Sanandaji, the report's author, said “the rigid bonus ban stands out, which does not allow any benefit to loyal gaming customers. Sweden pays a high price for that regulation in terms of lost players who instead choose unlicensed play.”

Sanandaji is a co-founder of the Stockholm-based pro-market think tank Captus, which he headed as CEO for several years until 2011.

A spokesperson for the Swedish Gambling Authority (SGA) declined to comment on the report because of its political nature.

In April 2022, the Swedish State Treasury called for more action against unlicensed operators and for consumer protection measures to be bolstered, in a report published by the Agency for Public Management evaluating the impact of the re-regulation of the country’s gambling market in 2018-2022.

The Treasury estimates that 13 percent of gambling still occurs with unlicensed operators and called on the government to instruct the SGA to increase its understanding of the black market and to work with other EU countries to diminish it.