Swedish online gambling channelization rate to reach 86% in 2023

Swedish gambling regulator Spelinspektionen announced that the channelization rate of the online gambling market in 2023 reached 86%. The figure exceeds forecasts by several operators, including ATG (Aktiebolaget Trav och Galopp), which predicted a fall between 69% and 82%.

Channelization: progress and challenges

Channelization refers to the percentage of players who participate in gambling through licensed and regulated operators. A high channelization rate indicates that more players are choosing legal platforms over unlicensed offshore options. But even with the rise to 86%, Spelinspektionen faces challenges from the unregulated market. The regulator estimates that unlicensed sites will generate 2. 5 billion kroner (220. 2 million euros) in 2023. However, this figure assumes equal amounts of bets on licensed and unlicensed platforms, which Spelinspektionen acknowledges may vary.

Data from a survey of 4, 000 Swedish players conducted in June-July 2023 helped determine the channeling rates. Of the respondents, 97% reported gambling with a licensed operator in their most recent session, and 83% of all bets were made on regulated websites.

In the field of sports betting, licensed platforms captured 99% of players and 97% of bets. However, in the field of online casinos, 96% of players used licensed websites and 79% of all bets were made on these platforms.

Skin betting and the black market

Although overall channeling has improved, the growing problem of "skin betting", the use of in-game virtual items as currency for illegal gambling, remains a concern for Spelinspektionen. When skin betting was included in the data, access to licensed gambling was only 73%, down from 84% when this form was excluded. In fact, 49% of visits to unlicensed websites were due to skin betting.

Spelinspektionen reported that 24% of visits to unlicensed gambling sites were related to commercial online gaming and 20% to online gambling. Regulators are looking to further understand what drives players to these platforms.

Mixed estimates from operators and external data

Other numbers also estimate the channeling rate of Sweden. For example, the data of H2 Gambling Capital suggests a high ratio of 92 % in 2023. H2 also reported that 93 % of online betting sales were licensed, and online casinos had a slightly lower percentage of 87 %. This data shows a optimistic outlook than the regulatory authorities, but emphasizes that the evaluation of chanrisation is complicated because the methodology is different.

Meanwhile, the report of Sweden's online gambling industry (BOS) criticizes Sweden's current regulation framework and restricts the competitiveness of licensing operators. According to BOS, the market as a whole is 77 %, and the online gambling division is even lower. Some businesses, including ATG, believe that the actual chan ratio of the channelization may be lower, suggesting that specific market segments may be 57 % to 72 %.

Response to regulatory authorities and future prospects

Despite continuous issues, SpelinspeKtionen focuses on the Swedis h-licensed gambling market keeping a larger share of activities. However, regulatory authorities have acknowledged that the percentage of 86 % of the players on the license site and the no n-licensed site could lower the percentage of 86 %. If the no n-licensed platform is remarkably high per visiting, the percentage may decrease to 78 %.

Camilla Rosenberg, the director of SpelinspeKtionen, emphasized the importance of various methodology in the evaluation of chanrisations. This result indicates that the degree of channeling varies depending on the play method and form. SGA believes that there are four different indicators that indicate the degree of channeling. "

SpelinspekTionen wants to continue to monitor the impact of unrecognized businesses and further investigate the dark market to understand its influence. Regulatory authorities aim to collect more data for 2024, channel the Swedish gambling market, and to check the progress to reduce untrained platform reach.

source

Redovisning Av Uppdrag Fi2023_03130: Den Offentliga Kontrollen Over Spelmarknaden, SpelinspeKtionen [PDF], Octor 2024.

The Lord Island market is shrinking due to the pressure of neighboring states

The Gaming Market in Lord Island has been struggled by competitors such as Massachusetts and Connecticat. According to a report from the Lord Island Audit General Auditors, remittances to general accounting have decreased by 1. 8 %.

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According to a report from the Lord Island Audit General Auditors, the Lord Island lottery has transferred $ 426. 4 million to the state funds in the state of the state in the fiscal year ending June 30, 2024.

This indicates a decrease of 1. 8 % and $ 8. 2 million compared to the previous year.

The report stated that the lodge Island's decline in Lord Island was intensifying the competition between nearby states, especially Connecticut and Massachusetts.

Last month, Jordan Meinard, Chairman of the Massachusetts Gaming Committee, advocated the introduction of mult i-factor authentication as a means of increasing the security of online sports betting accounts.

Net income in September in Massachusetts has a record high

The report was announced shortly after Massachusetts announced the second highest net income in the 5 2-year lottery history.

According to Professor Patrick Kelly, Professional College, who is studying gambling, the market in Road Island is "smaller."

At first glance, the decrease of the 1. 8 % seemed to be a big deal, but Kelly emphasized that it could show the lon g-term shrinking of the state gambling market.

The decline was particularly remarkable in the Lord Island sports books, with a 2024 fiscal year's earnings of $ 458. 8 million, decreasing from $ 59. 5 million in the previous year.

Of these, only $ 19. 2 million was transferred to the general account.

Collecting the neighboring states

In addition, Kelly also enjoyed the first privilege of the United States as a state of the United States, which first legalized sportsbetting in New England in 2018, but soon the nearby state will gradually catch up. He emphasized that he had begun to deal with it.

Connecticut, which legally legalized sports betting, and Massachusetts, which introduced online sports betting in March 2023, are the main competitors of Lord Island.

By the end of the accounting year, Sports Betting in Connecticut is $ 177. 72 million, whereas Massachusetts is $ 567 million from September to June 30, 2024. Is recorded.

Road Island looking for a solution

As Road Island faced intensifying competition, state leaders have been seeking ways to strengthen their position.

In 2023, a bill was passed to allow betting in a specific tournament of university sports in the state.

Senate President Dominic Ruggerio has been a vocal advocate for sportsbook expansion, promising to continue efforts to boost Rhode Island's presence in an increasingly competitive gaming market.

Sports team performance has also played a role in the decline in sportsbook revenue. Kelly noted that football betting in the region surged during the Tom Brady era of the New England Patriots.

Now, with the team struggling, sports betting is down.

Table game revenue and video lottery sales decline

Other segments of Rhode Island's gaming industry also saw declines. The auditor general's report noted a 4. 1% decline in table game revenue and a 1. 8% decline in video lottery sales.

State Lottery Director Marc Furcolo blamed several economic factors for the worse, along with ongoing traffic problems, focusing in particular on the closure of the westbound Washington Bridge, which hit traffic to Bally's Lincoln Casino.

In response, the state doubled Bally's maximum credit limit from $50, 000 to $100, 000 to attract more high-stakes players.

Finally, the rise of online gambling further complicates the situation. Since its launch in March, iGaming has generated $3. 6 million in net income for the general fund.

Farcoro noted that it's too early to fully assess the impact of iGaming on traditional casino revenues.

But Kelly predicted that as iGaming continues to grow, it will likely come to account for a larger share of revenue from brick-and-mortar gaming establishments.