Sweden: New regulation leads to more gambling at legal providers

Sweden: New regulation leads to more gambling at legal providers

 gambling at legal providers

New regulation of gambling in Sweden in 2019 has led to increased gambling participation among legal operators. This is the conclusion of the Swedish Public Administration Office (Statskontoret), which was commissioned by the government to evaluate the impact of the new regulation.

In its analysis of the period from 2018 to 2022, the investigating authority focused primarily on channeling toward legal gambling and on consumer protection, which you can see in the PureWin India Review.

Sweden's gambling regulation, which came into force on January 1, 2019, is based on a licensing system and divides the gambling market into:

  • a market share open to all licensed gambling companies, mainly comprising online gambling and sports and horse betting,
  • a market share reserved for non-profit organizations, which mainly includes lotteries and land-based bingo,
  • a market share reserved for the state, which includes games in land-based casinos and ATMs.

In its report [page in Swedish], the Administrative Office concluded that the gaming market was functioning better in 2021 than it had in 2018, the last year before the new regulation.

A significantly higher degree of channeling

Overall, gambling was taking place significantly more with companies that were operating legally in the gambling market, had a license, paid taxes in Sweden and were under the supervision of the gambling authority.

This can be clearly seen in the degree of channeling, which shows how large a share of the gambling market is held by gambling companies licensed in Sweden, it said. The report states:

"The channelization rate has increased from less than 50% before the re-regulation to an estimated 87% in 2021. This represents a significant increase and a clear impact of the new regulation."

The Swedish state now has much better opportunities to make demands on gambling companies due to the increase in public control over the gambling market. This, he said, primarily relates to the area of player protection, but also to the regulation of gambling advertising and the prevention of gambling manipulation.

The new regulation has led to better consumer protection in the gambling market. Gambling companies would now have to meet stricter player protection requirements. In addition, players can have themselves excluded from gambling in the national self-exclusion register, Spelpaus.se.

Improvements in player protection required

Nevertheless, he said there was no evidence that the new regulation had had any impact on the level of problem gambling in the population. In 2021, the proportion of the population with gambling problems had been 1.3%, the same level as in 2018.

Improvements in player protection required

The Office of Public Administration concludes that more could be done in terms of player protection. For example, it says there is room for improvement in the measures that gambling companies must take to counter excessive gambling in accordance with legal requirements.

What further measures could be helpful in this regard, however, is not outlined, for example, as on the site https://indiancustomer.in/review/jeetwin/. However, according to the analysts, further findings are needed on which specific measures could have an impact on players' gambling behavior.