We often get asked...
What is important in tomorrow's gaming market?
It is essential that we establish long-term sustainable regulations, where customer protection is at the top of the agenda and where all gaming companies compete on equal terms. Today, offshore gaming companies operate and market themselves in Sweden without paying tax in Sweden and without inspection from the Swedish authorities. These gaming companies aggressively market themselves in Sweden despite the explicit ban on advertising stipulated in the Swedish Lotteries Act. When combined with the strict restrictions that pertain to regulated companies, the result is competition on different terms.
Still growing gaming market
The Swedish gaming market is made up of regulated gaming companies and, in Sweden unregulated offshore gaming companies, but also an illegal market. The Swedish gaming market grows an average of 3% per year.
The offshore gaming companies account for the largest proportion of this increase. Svenska Spel has the largest market share, but this share has shrunk at the rate the gaming market has grown, and the Company lacks a permit for online casino which is the largest product in the market.
The competition from the offshore gaming companies, which are estimated to have more than half of the online market, is considerable. Svenska Spel's market share totals 40.5% (42.5). Svenska Spel's online market share is estimated at 20.8% (21.1) for 2016.
Net gaming revenue for the regulated Swedish gaming companies amounted to approximately SEK 17,100 million (16,700). After adding the offshore gaming companies' net gaming revenue of SEK 5,100 million (4,400), the total known Swedish gaming market amounted in 2016 to SEK 22,200 million (21,100).
Growth is online
Growth in gaming is driven primarily online, in particular by sports betting and online casino. The increasingly popular games are found among the offshore gaming companies that only offer their games online. Customers demand games with high wins and high jackpots.
Companies active in the swedish gaming market
Wholly state-owned Svenska Spel and AB Trav och Galopp (ATG) are the largest regulated companies, both of which are granted their gaming permits by the Government. Other companies are granted their gaming permits by the Swedish Gambling Authority.
The offshore gaming companies are primarily active online. These companies do not follow the same laws and restrictions as the Swedish companies, such as which games they may offer and how they market themselves.
Licensed market expected
In parallel with the growing competition, a gaming investigation is underway that is expected to result in a recommendation on 31 March 2017 for the design of a future licensed market. Such a licensed market can take effect in the summer of 2018 at the earliest. According to the directives, the new gaming regulations will be distinguished by a high level of customer protection, high safety in gaming and clear terms and conditions for operating in the market. A licensed market is expected to create equal conditions for all companies in the market.
Companies with permits to operate in Sweden
- AB Trav och Galopp (ATG)
- Bingo halls
- Restaurant casinos
- Svenska Spel
- Other NGO lotteries
Major offshore companies without permits to operate in Sweden
- Leo Vegas
- Mr Green