Sweden sees offshore gaming market grow as regulated operators struggle

Sweden sees offshore gaming market grow as regulated operators struggle

Monday, November 12, 2018 Posted by News Team
Sweden
Market has seen strong online growth offset by land-based decline

Sweden has revealed a 2.4% decline in regulated gambling revenue for the first nine months of 2018, with unregulated operators now accounting for more than a quarter of the total market size.

Total market revenue grew marginally, up 1.2% to SEK16.8bn (€1.6bn) for the nine months, with a decline in regulated market revenue to SEK12.2bn offset by a 12.4% increase in revenue from offshore operators.

For the three quarters of 2018 to date, according to the figures from Swedish gambling regulator the Lotteriinspektionen, unlicensed operators have generated revenue of SEK4.5bn, amounting to a market share of around 27%.

The regulated market suffered after a number of the leading licensed brands reported year-on-year falls in revenue, with growth in online products offset by land-based declines. For the year to date online gambling revenue was up 12.9%, while land-based was down 8.4%.

Svenska Spel, the largest operator in the market with a 38% share, reported 1.6% drop in revenue to SEK6.4bn. The company’s online gaming arm reported year-on-year growth of 22.4%, though land-based revenue fell 9.4% to SEK4.5bn.

Horse racing betting operator AB Trav och Galopp (ATG) followed a similar pattern, with 6.7% growth in online revenue to SEK1.9bn wiped out by a 10% decline in land-based revenue. This led to the business reporting a 0.4% drop in revenue to SEK3.1bn for the year to date.

A number of the country’s smaller licensed lotteries, such as the Postcode Lottery and Folkspel have also posted year-on-year declines. However IOGT-NTO, the lottery operated on behalf of the Swedish temperance movement, saw the biggest year-on-year decline, with revenue falling 24.8% to SEK171m.

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