Illegal Gambling Operators in Sweden Generate Billions in Revenue

The Swedish regulatory authority, Spelinspektionen, reported an 86% channelization rate for the regulated online gambling market in 2023. Illegal gambling operators are said to have generated revenues of 2.5 billion SEK (220.2 million euros) in Sweden last year.

Study on Increased Gambling Demand in Sweden

Spelinspektionen released a study in January highlighting the rising demand for gambling in Sweden. 75% of respondents admitted to gambling with real money at online casinos or betting sites in the past year. Additionally, one in ten participants expressed concerns about their gambling behavior, citing excessive deposits and inappropriate betting relative to their financial situation.

Skin Betting Challenges Swedish Gambling Market

Spelinspektionen analyzed internet traffic data of gamblers, noting that 73% of visits were to licensed gambling sites. Skin betting, an illegal form of wagering using virtual goods known as skins, posed a significant challenge. Excluding skin betting would increase visits to legal sites to 84% and decrease visits to illegal platforms to 16%. E-Sports betting predominantly features skin betting, while traditional sports betting sees less involvement.

Data Collection from Licensed Gambling Operators

Spelinspektionen requested revenue data from licensed gambling firms in Sweden, with only 69 out of 180 providing comprehensive information. External insights from H2 Gambling Capital estimated a channelization rate of 92%, exceeding Spelinspektionen’s findings of 86%.