Sweden's Channelisation Still Shy Of Promised Mark

The Swedish Gambling Authority (SGA) has published the channelisation rate for the year 2023, which came in at 86 percent. That number is still below the 90 percent that was projected when the Swedish market was first re-regulated in 2019. 

At the time, that 90 percent figure was estimated to be a reachable goal by the gambling licensing inquiry within two years. Nearly five years later, the rate is stable but far off of that promise. 

The channelisation rate still vacillates between verticals, with online casino games coming in at 81 percent. Other surveys and studies have estimated that certain channelisation rates are as low as 70 percent. 

According to a survey from the Swedish Trade Association for Online Gambling (BOS) last summer, 77 percent of online gambling occurs on licensed Swedish sites. That survey also found that channelisation is highest for lotteries at 91 percent and lowest for online casino games at 72 percent. 

In another survey from formerly state-owned operator ATG, the channelisation rate is 69 percent. 

Gustaf Hoffstedt, the secretary general of the BOS, told Vixio GamblingCompliance: “We feel confident with our channelisation assessment and note that we always end up in the middle.

"Sweden still has a lot of work to do if it is to succeed in achieving at least 90 percent channelisation. This work must include both repressive measures to keep unlicensed operators away, as well as liberalisation of the licensed gambling market to increase the attractiveness from the consumer's perspective.”

According to the SGA, players who bet on websites without a licence most commonly reported that they did so because they did not know the difference (22 percent). Nineteen percent reported that the unlicensed site they used had better bonus offers. An additional 19 percent listed higher repayment opportunities as the reason. Thirteen percent said payment methods on offer (such as crypto) drove them away. 

Another 13 percent said that they chose to gamble outside regulation due to the selection of games, while a further 11 percent said it was because they could play without identifying themselves on unlicensed sites.

Evidence that smaller issues, when grouped together, deeply affect channelisation.