The Swedish gambling industry has been a messy affair for quite some years. There was no regulated online gambling market until quite recently. Before, the market was completely monopolised by the state. However, the new Gambling Act that was introduced on January the 1st 2019 and many things have changed. Now, the Spelinspektionen (Swedish Gambling Authority) has legalised 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. It has been noticed that many consumers are converting to mobile-based platforms now.
An interesting thing is that despite the rise in the overall gambling spend of Swedes in 2019, the gambling participation rates have actually dropped by 6%. This means that while fewer people are gambling, those that are taking part in this kind of activity are investing a lot more in this recreational pastime.
Limits Imposed on Deposits and Bonuses due to Covid-19
Spelinspektionen has regulated the gambling market. However, this may not be the best thing for operators. The Swedish Gambling Authority has imposed several limits on deposits and bonuses allowed at operators’ gambling portals. Some of those restrictions have been worsened due to the eruption of the Covid-19 virus.
Mandatory Cap
Upset Among Gamblers and Operators
Mandatory Cap
Consumers have a mandatory cap of SEK 5,000 (€476) on weekly deposits. Operators have been restricted to offering no more than SEK 100 (€10) in bonuses. Another restriction imposed is that it is now mandatory for players to set a time limit on how long they engage in gambling activities when they register at an online casino. The restrictions were initially intended to cover all forms of gambling, but later horse race and sports betting were made exempt after some disputes. These temporary measures came into effect July 2nd in 2020 and are intended to remain so until the end of the year.
The state’s idea with these restrictions is to help avoid an increase in problem gambling during the pandemic. They seem to believe that being in lockdown and sitting around in houses all day is going to make people bored. When people are bored, they may resort to gambling which may cause addiction in Swedes. Because of worry on the issue, the government has approved SEK 500,000 in funding for the Public Health Authority for research into problem gambling during the pandemic.
Upset Among Gamblers and Operators
However, there has been some upset among gamblers and operators in relation to these newly imposed limits. Many of the operators affected by the regulations banded together to try and form a solution. They claimed that these new rules would not only result in a drastic drop of income from gambling activities, it would also push gamblers to use illegal sites in retaliation to the strict limits.
Public Opinion of Gambling
At the tail end of 2018, a survey was conducted on the public view of gambling. The survey consisted of 1,300 randomly selected Swedish adults. Results from the survey showed quite a negative view of the industry from the public.
Customer Satisfaction Levels
Public’s Opinion on Gambling Advertisements
Customer Satisfaction Levels
We will start with the overall customer satisfaction levels. This is in a system out of a 100, where over 75 points are considered good and anything below 60 is considered a great dissatisfaction among customers. The Swedish industry scored a mere 55.7.
From the surveyed individuals, only 25% had a positive view of the market, while 58% expressed a downright negative opinion. This shows a pretty dismal overlook as no other industry in the world had ever shown similar figures on the matter.
Furthermore, participants were questioned on their views of the new gambling regulations that were to come into effect in January 2019, 77% of respondents pleaded ignorance. Even after being informed on the matter, 29% expressed scepticism that the new Act would help contribute to safer and healthier gambling industry. Furthermore, only 37% of Swedes agreed that the industry was managing gambling addiction appropriately.
Public’s Opinion on Gambling Advertisements
Another interesting figure was the public’s opinion on gambling advertisements. This was part of a survey that asked Swedes if they thought different advertisements were credible. Only 1% of respondents voted for gambling. Even politics got a higher vote with 8%.
Overall, the public opinion of gambling in Sweden is not great. The industry needs to work on its organisation and legislation as well as raising awareness on the subject.
Gambling Participation by Game, Channel, and Operator
The lottery has always been the favourite among Swedes. Nothing has changed in recent years, as 75% of all gambling respondents from a survey in 2019 claimed to have played lottery games. Other number and draw-based games followed with 50% of respondents saying they had engaged in this type of gambling activity.
Third place, in terms of game popularity, was taken by horse race betting. Around 38% of participants had placed bets on this type of gambling. Sports bettings had popularity 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 stood at 29%, while desktops had 19% of respondents using them for gambling.
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 gambling participants in the survey had said they used these operators for gambling. Despite the legalising of foreign operators, not many opted for gambling with them. Only 17% had used ATG as their preferred source for gambling fun, while 4% used Bet356, and 3% used Unibet.
Gambling Trends in Sweden
In 2019, the overall gambling participation rate has dropped by 6% since the previous year, now at 60%. Although the Swedes that are gambling seem to be doing so more, as the overall GGR has rocketed upwards.
Survey From the End of 2019
Survey During 2019
A survey was conducted at the end of 2019. It consisted of over 1,000 respondents of legal gambling age. The survey asked participants how often they gambled or played the lottery. Results showed that only 2% gambled every day, although 31% did once or a few times weekly. A further 25% gambled once a month, while 13% did once every 3 months, and 9% did once every half-year. A mere 6% said they had done so more seldomly that once a year, while 14% they had once during the year.
Survey During 2019
Another survey was conducted during 2019 that looked at different dynamics of gambling participation. This one consisted of 1,600 participants over the age of 18 and showed that 45% of Swedes had taken part in some form of gambling activity in the past month. A further 31% had gambled in the past week and only 17% said they had never gambled.
Out of the 31% that had gambled in the past week, 39% of them were male, out of which 43% were between the ages of 50 and 64. Those that had gambled in the past month (45%), half of them were men, out of which 58% were aged 50-64.
When asked about their motivation for gambling, 62% claimed they did it as a form of entertainment. A further 31% said it was because they wanted to win big. It seemed that the younger age group (18-29) made up the larger part of those who gambled as a form of entertainment, forming 73% of the 62%.
Problem Gambling Prevalence in Sweden
A study was conducted in recent years to find out the prevalence of problem gambling in Sweden. It found that, out of lifetime problem pathological gamblers, 78.5% of them were men. Out of the same category, nearly half of the problem gamblers were between the ages of 25 and 44. Only 2.1% of them were aged 65 to 74.
The same study showed that unmarried people were more likely to suffer from problem gambling, as 53.9% were, while only 21.8% were married. A further part of the survey showed that 25.1% of problem gamblers in Sweden were city-dwellers, while the remaining 74.9% lived elsewhere.
An interesting fact on problem gambling in Sweden is that, despite the larger gambling participation coming from men, women took up nearly two-thirds of gambling addicts in 2018. A survey estimated that around 45,000 Swedes suffered from gambling addiction, out of which, women formed 64%.
Summary
Overall, Swedes do love to play the lottery. In terms of land-based and online casinos, not so much. They do love to bet on horse racing and sports betting as well, though. The Swedish public is quite sceptical about the new gambling regulations, however. They are also not very happy 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 on regulations and restrictions, handing out hefty fines to operators that do not abide by them. It is also quite evident that the Swedish population has not been properly educated about the gambling market and the positive side of things. Maybe the government needs to focus on raising awareness about gambling and lighten up on its regulations that are pushing gamblers towards illegal operators.