Swedish trade group slams failing Swedish channelisation targets
BOS calls for governmental action to increase rates following SGA admission of lower channelisation rate
Swedish trade association BOS has attacked the Swedish Gambling Authority (SGA) over its alleged failure to meet channelisation targets towards Swedish licensed operators.
The comments come after the SGA lowered its channelisation rate estimates to 85-87% and admitted it did not have exact figures.
BOS CEO Gustaf Hoffstedt claimed the reduction reflected the trend towards increased use of unlicensed gambling sites by Swedish players.
“No one that has been paying attention to the political outburst and the astronomical fines on licensed gambling companies can be surprised over this development,” Hoffstedt said.
“Unless the Government takes forceful action to protect its own reregulation the channelisation is likely to decrease further,” Hoffstedt added.
As part of the launch of regulated operations, the Swedish government set a target of at least 90% of Swedish gambling to take place on licensed platforms.
In September, the SGA claimed a channelisation rate of 91%.
However, Hoffstedt further said the channelisation rate within the online casino and sports betting sector could be even lower than 85-87% due to the inclusion of horseracing pools within the SGA’s estimate.
Betting on horseracing is still operated on a monopoly basis by ATG, with an estimated channelisation rate of 99%.
Gustaf Hoffstedt claimed the Swedish government is unaware of the “gravity of the situation” with respect to falling channelisation rates
LeoVegas CEO Gustaf Hagman told EGR yesterday the channelisation rate was likely around 75% in online casino specifically.
Earlier this week, Swedish Minister for Social Affairs Ardalan Shekarabi claimed the high channelisation rates towards licensed operators in Sweden were a vindication of the decision to regulate the Swedish gambling market.
Attacking the Swedish Government over its intention to introduce further marketing restrictions for Swedish operators, as well as prohibiting several betting markets, Hoffstedt claimed it showed the government did not understand the “gravity of the situation”.
“Such restrictions would virtually mean giving away the Swedish gambling market to unlicensed operators. The Government is currently acting as the best friend of the black and grey market and this needs to end,” Hoffstedt said.
In other developments, online casino and sports betting firm Betway confirmed it had joined BOS, becoming the 21st operator to do so.