Summary
- BoS is urging the government to prioritize solving the issues caused by channelization.
- We need to dig deeper to understand why our current gambling strategies are falling short.
- Any changes introduced should aim to not only reinforce but also open up and invigorate the current gambling market.
The Swedish Trade Association for Online Gambling has reached out to the Ministry of Finance with a heartfelt appeal to reconsider the current gambling regulations. They are deeply concerned about the stagnant market channelization, which hasn't come close to the government’s ambitious target of 90%.
BoS urges the government to take decisive steps in the matter of channelization
Channelization marks the pulse of the gambling industry by revealing how deeply consumers engage with licensed operators. Despite regulators often reporting optimistic figures, independent studies present a different reality. Take Sweden for example. Their latest channelization rate of 85% falls short of the 90% goal, prompting the industry to urge a review of existing rules. But even this number masks a broader issue. Especially troubling is the casino sector, whose channelization rates waver between 72% and 82%. Digging deeper, an independent study by Yield Sec suggests that illegal gambling sways 71% of the market in Europe, affecting both casinos and sales. According to Matej Novota, Head of Casino Research at Casino House Group, the Swedish Gambling Authority's call to re-evaluate regulations is overdue. Licensed operators, with their limited bonuses, are losing players to unlicensed offshore platforms promising better rewards. Without policy revisions to include enticing loyalty programs and bonuses, the regulated market risks further decline in coming years. Current efforts seem to have inadvertently empowered the offshore market. Yet, BoS has timed their intervention well. BoS Secretary General Gustaf Hoffstedt has highlighted the urgency for the government to act upon the Gambling Authority's report on unlicensed gaming. He stresses that a comprehensive inquiry focused on stemming the tide towards unlicensed gambling could be pivotal in preserving a robust legal market as Sweden gears up for elections next September. Government investigator Marcus Isgren is set to propose measures to fortify the Gambling Act's protections. While BoS appreciates this step, they argue that more than a single tweak is essential. Opening a new inquiry to refine channelization is crucial. Their vision calls for more flexibility for the licensed market, especially with the strategic use of bonuses.
