Gambling Participation Rates in Sweden

The Swedish gambling industry has been a messy affair for quite some time. There was no regulated online gambling market until quite recently. Before, the market was completely monopolized by the state. However, the new Gambling Act introduced on January 1, 2019, has changed many things. Now, the Spelinspektionen (Swedish Gambling Authority) has legalized and regulated this aspect of the industry, with many strict rules imposed on operators for the purpose of player protection.

In 2019, the gross gambling revenue (GGR) in Sweden amounted to SEK 24.8 billion, a SEK 1.4 billion increase from the previous year. The Swedish gambling market continues to grow and evolve, as do the means of gambling. Many consumers are now moving to mobile-based platforms.

Interestingly, despite the rise in overall gambling spending by Swedes in 2019, the gambling participation rates actually dropped by 6%. This means that while fewer people are gambling, those who do choose to play are investing much more in the pastime.

Limits Imposed on Deposits and Bonuses due to Covid-19

Spelinspektionen regulates the gambling market. However, this may not be ideal for operators. The Swedish Gambling Authority has imposed several limits on deposits and bonuses at operators’ gambling portals. Some of these restrictions became stricter following the Covid-19 outbreak.

Mandatory Cap

Upset Among Gamblers and Operators

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Mandatory Cap

Consumers face a mandatory weekly deposit cap of SEK 5,000 (€476). Operators may offer bonuses of no more than SEK 100 (€10). Another rule requires players to set a time limit for their gambling sessions when they register at an online casino. The restrictions were initially meant to cover all forms of gambling, but after some disputes, horse racing and sports betting were exempted. These temporary measures took effect on July 2, 2020 and are scheduled to remain in place until the end of the year.

The goal of these restrictions is to prevent an increase in problem gambling during the pandemic. Authorities believe that lockdowns and extended time at home could lead to boredom, potentially driving people to gamble more. When people are bored, they may resort to gambling, which could lead to addiction among Swedes. Due to these concerns, the government approved SEK 500,000 in funding for the Public Health Authority to research problem gambling during the pandemic.

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Upset Among Gamblers and Operators

However, the newly imposed limits have caused frustration among both gamblers and operators. Many affected operators banded together to seek a solution. They argued that the new rules would not only lead to a drastic drop in gambling revenue but also push players toward illegal sites in response to the strict limits.

Public Opinion of Gambling

In late 2018, researchers conducted a survey on public attitudes toward gambling. The survey included 1,300 randomly selected Swedish adults. The results revealed a largely negative perception of the industry.

Customer Satisfaction Levels

Public’s Opinion on Gambling Advertisements

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Customer Satisfaction Levels

First, consider overall customer satisfaction. The index is out of 100 points, where scores above 75 are good and scores below 60 indicate significant dissatisfaction. The Swedish gambling industry scored only 55.7.

Among those surveyed, just 25% held a positive view of the market, while 58% expressed an overtly negative opinion. This is a dismal result, as no other industry worldwide has shown similar figures.

Participants were also asked about the new gambling regulations set to take effect in January 2019: 77% said they were unaware of them. Even after learning the details, 29% doubted that the new act would help create a safer, healthier gambling industry. Only 37% of Swedes believed the industry was managing gambling addiction appropriately.

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Public’s Opinion on Gambling Advertisements

Another noteworthy finding concerned public opinion on gambling advertisements. The survey asked Swedes whether they considered various types of advertising credible. Only 1% of respondents chose gambling, while even political advertising scored higher at 8%.

Overall, public opinion of gambling in Sweden remains poor. The industry needs to improve its organization, update legislation, and raise awareness of responsible gambling.

Gambling Participation by Game, Channel, and Operator

The lottery has always been the favorite among Swedes. Nothing has changed in recent years: 75% of all gambling respondents in a 2019 survey said they had played lottery games. Other number- and draw-based games followed, with 50% of respondents saying they had engaged in this type of gambling activity.

Horse race betting ranked third in popularity. About 38% of participants had placed bets on this form of gambling. Sports betting was popular among 21% of gamblers, whereas only 5% had gambled at casinos.

Retail was the dominant gambling vertical, with 48% of respondents saying they had placed wagers at betting shops. Mobile devices were used by 29%, while desktop computers were used by 19%.

The former gambling monopolies in Sweden, Svenska Spel and AB Trav och Galopp, were the most popular operators among Swedish players. A total of 63% of survey participants said they used these operators for gambling. Despite the legalizing of foreign operators, not many opted to gamble with them. Only 17% used ATG as their preferred choice, while 4% used Bet365 and 3% used Unibet.

Gambling Trends in Sweden

In 2019, the overall gambling participation rate fell by 6 percentage points from the previous year to 60%. However, Swedes who continue to gamble seem to do so more frequently, as total gross gaming revenue has climbed sharply.

Survey From the End of 2019

Survey During 2019

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Survey From the End of 2019

A survey conducted at the end of 2019 included more than 1,000 respondents of legal gambling age. Participants were asked how often they gambled or played the lottery. Results showed that only 2% gambled every day, while 31% did so once or a few times weekly. Another 25% gambled once a month, 13% once every three months, and 9% once every half-year. Just 6% said they gambled less than once a year, while 14% reported gambling once during the year.

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Survey During 2019

Another survey conducted in 2019 examined different aspects of gambling participation. It included 1,600 participants over the age of 18 and found that 45% of Swedes had engaged in some form of gambling during the past month. An additional 31% had gambled in the past week, and only 17% said they had never gambled.

Of the 31% who had gambled in the past week, 39% were men, 43% of whom were aged 50–64. Among those who had gambled in the past month (45%), half were men, and 58% of them were aged 50–64.

When asked about their motivation for gambling, 62% said they did it for entertainment, while another 31% said they wanted to win big. The youngest age group (18–29) accounted for 73% of those who gambled for entertainment.

Problem Gambling Prevalence in Sweden

A study was conducted in recent years to determine the prevalence of problem gambling in Sweden. It found that, among lifetime pathological gamblers, 78.5% were men. Within this group, nearly half were between ages 25-44. Only 2.1% were aged 65-74.

The same study showed that unmarried people were more likely to experience problem gambling, with 53.9% of problem gamblers being unmarried, while only 21.8% were married. Further, 25.1% of problem gamblers in Sweden were city dwellers, while the remaining 74.9% lived elsewhere.

Interestingly, although men participated in gambling more overall, women made up nearly two-thirds of gambling addicts in 2018. A survey estimated that around 45,000 Swedes suffered from gambling addiction, of which women accounted for 64%.

Summary

Overall, Swedes do love to play the lottery. They are less enthusiastic about land-based and online casinos. They also enjoy horse racing and sports betting. The Swedish public is quite skeptical about the new gambling regulations; they are also unhappy about the new restrictions on bonuses and weekly deposits.

The gambling industry in Sweden is a very rocky business, to say the least. The state is cracking down with regulations and restrictions, handing out hefty fines to operators that do not abide by them. It is also clear that the Swedish population has not been properly educated about the gambling market and its positive aspects. The government may need to focus on raising awareness about gambling and relax the regulations that are pushing gamblers toward illegal operators.