ATG Report Reveals Growing Unlicensed Gambling Market in Sweden

In a comprehensive new report titled Gambling Under the Radar – An Examination of the Effectiveness of Swedish Gambling Policy, Swedish gaming operator ATG sheds light on the growing concern over the rise of unlicensed gambling in Sweden. The report focuses on developments since the implementation of the regulated market in January 2019, highlighting that traffic to unlicensed gambling sites has surged significantly in the past five and a half years.

According to ATG, the Swedish government’s initial goal for the regulated market was to achieve a 90% channeling rate, meaning that most of the country’s gambling would be conducted through licensed operators. However, the report reveals that this target has fallen short. Estimates suggest that between 14% and 29% of gambling in Sweden is now taking place on unlicensed platforms, a figure far from the government’s optimistic projections of a 91% channeling rate in 2023.

ATG’s CEO, Hasse Lord Skarplöth, expressed surprise at the Swedish government’s claims regarding channeling rates, particularly given that previous assessments have been criticized for relying on questionable methodologies. The ATG analysis found that the share of unlicensed gambling remains alarmingly high, with Swedish traffic to unlicensed platforms rising steeply since the market’s re-regulation.

In response to the growing concerns, ATG took the initiative in 2022 by developing a web traffic analysis tool capable of accurately tracking Swedish visits to unlicensed gambling websites. Based on this data, ATG estimates that the turnover on these unlicensed sites is significant, and the increase in traffic is concerning for the regulated market.

ATG has laid out several proposals aimed at addressing the rapid growth of unregulated gambling in Sweden. These recommendations are designed to enhance oversight, improve the protection of Swedish consumers, and reduce the appeal of unlicensed platforms.

1. Revise Legal Definitions: ATG advocates for a change in current legislation to ensure that any gambling site accessible to Swedish players should fall under Swedish gambling laws. This would shift the burden of proof away from Spelinspektionen, the Swedish Gambling Authority, which currently must demonstrate that a platform is actively targeting Swedish consumers before taking action against it.

2. Implement IP and DNS Blocking: One of the key proposals is the introduction of legislative support for IP and DNS blocking to restrict access to unlicensed gambling websites. ATG points to successful implementations of this strategy in Denmark and Norway, where such measures have led to a substantial reduction in unregulated gambling. The company believes that Sweden should follow suit to better protect its gambling market.

3. Increase Support for Problem Gamblers: ATG highlights the importance of immediate outreach to individuals who register for Sweden’s national self-exclusion program, Spelpaus. The report indicates that many individuals who seek help for gambling addiction end up gambling on unlicensed sites, where there are fewer safeguards. To address this, ATG calls for more resources to be allocated to support organizations that can reach out to problem gamblers promptly.

4. Stricter Bonus Regulations: The report advocates for tighter controls on gambling bonuses, urging for a complete ban on all types of gambling promotions. ATG argues that competition in the gambling market should be based on the quality of the gaming experience, not on aggressive marketing tactics that may encourage irresponsible gambling.

5. Risk Classification of Gambling Products: ATG proposes a classification system for different gambling products, with higher-risk categories receiving stricter regulations and marketing controls. This would include more robust responsible gambling measures for online casinos, which have been identified as a higher risk for problem gambling.

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ATG’s report also highlights some of the challenges the Swedish Gambling Authority has faced in enforcing regulations. Despite the robust tools and laws at its disposal, Spelinspektionen has struggled to combat the rise of unlicensed gambling. For instance, although the authority has issued decisions against a number of operators, there remains a significant number of unlicensed actors on the market, many of whom continue to operate without sufficient oversight.

Additionally, there is ongoing concern regarding the use of Swedish BankID on unlicensed platforms, a practice that undermines the ability to control the gambling market effectively. The report stresses that further action is needed to address these loopholes and protect Swedish players from the risks associated with unregulated gambling.

Source:

“ATG spelrapport 2024“, mynewsdesk.com, October 4, 2024.