Third of Swedish gamblers actively search for unlicensed operators, survey finds

Sweden’s channelisation rate could be as low as 70%, according to new market research conducted by affiliate brand BonusFinder.

The research suggests that 30% of Swedish players have actively searched online using search terms such as ‘unlicensed casino’ (casino utan licens).

Researchers have monitored changes in search levels via Google Trends since the first licences were issued to operators in January 2019.

The report claims the rise in online searches for unlicensed casinos in Sweden is primarily due to the restrictions placed on the licensed market by the Swedish Gambling Authority (SGA).

In September 2019, the SGA claimed the Swedish market operated with a channelisation rate of 91% towards licensed operators. However, the regulator lowered these estimates in November to between 85%-87% following independent research conducted by H2 Gambling Capital.

Swedish-licensed operators are prohibited from offering repeated bonuses to players, as well as being restricted in offering betting markets on certain sporting events such as yellow cards, red cards, penalties and disqualifications.

BonusFinder MD Fintan Costello said the data should serve as a stark warning for the SGA that it needs to do more to close unlicensed sites.

“Instead of misguidedly declaring phase one of Swedish legislation a “success”, regulators should be focusing on the rising proportion of players searching for ‘unlicensed’ brands,” Costello said.

BonusFinder also spoke to one German-facing gambling operator that claimed online casino revenues could fall by as much as 70% if the German government proceeds with the restrictions outlined in the new Interstate Treaty.

“The strict policies in the new Interstate Treaty on Gambling, however, will force players and operators into illegal channels and, if this goes ahead, the market with the biggest potential in Europe will have lost its opportunity,” the anonymous operator claimed.

Under current proposals, the new IST would include deposit limits of €1,000 per month for all online casino players as well as limiting the times at which gambling adverts can be broadcast.

Online casino slots games will be limited to €1 per spin stake limit, while autoplay and offering jackpots will be prohibited under the new rules.

“For many operators, revenues will drop by 60% to 70%, and, on top of that, taxes and fees will make this licence unattractive,” the anonymous operator added.

Addressing these comments, Costello said German authorities should learn from Sweden’s mistakes and change the “damaging” legislation before the market launches in 2021.

“This should serve as a real warning for German lawmakers who have plenty of time to alter their proposals to benefit and protect players and to ensure their newly regulated framework is commercially successful,” Costello added.