Swedish online gambling revenue down 3% in Q3

Sweden’s online gambling revenue dropped 3.4% sequentially to SEK3.35bn (£270m) in Q3, according to preliminary figures released by the Swedish Gambling Authority.

The revenue figure was down around £9m from Q2, and nearly £6m from Q1.

Turnover has fluctuated during the last three quarters following regulation Source: Spelinspektionen

The decline is partially down to seasonality, according to Nordic Gambling CEO Morten Ronde, but the broader market has also been underperforming following reregulation.

“There has been a general decline in the market during the year and that is definitely because of the impact of regulation,” Ronde said.

“When you give the players fewer offers and take away their bonus incentives then they are bound to play less online because usually the players would reinvest the funds saved via offers into their gambling. This is undoubtedly causing a decline,” Ronde added.

Several of Sweden’s biggest firms, including Kindred, Betsson and NetEnt, have all seen revenue declines in Q3, with all three firms citing increased Swedish regulation as being among the chief causes.

Conversely, former monopoly operator Svenska Spel also reported a decline in group revenues, saw a 9% increase in online revenues.

During the last quarter, the number of gambling firms among the top 20 advertisers in the Swedish market also declined, with several exiting the list entirely, including LeoVegas and Betsson.

Sweden’s top gambling advertisers including Kindred and Cherry reduced their advertising spend signifcantly during the quarter.

Ronde attributed the decline in spending to a lack of clarity about Swedish regulation, especially around what constitutes “moderation”.

“This is playing into the hands of the unlicensed operators, who are continuing to invest because they’ll get fined regardless of what they do,” Ronde said. “A proper analysis of the market needs to occur.”