The Swedish Gambling Authority (SGA) has published its latest report on the country’s regulated gambling market, estimating that the channelisation rate for 2024 stands at 85%.
The figure represents a slight decline from 2023, when the rate was measured at 86%.
The rate of channelisation indicates the proportion of Swedish gambling activity occurring with operators licensed under Sweden’s regulatory framework, and is a key benchmark for assessing the success of the country’s licensing system introduced in 2019.
The report draws its findings from a combination of player surveys and internet traffic data, providing two independent indicators of market behaviour.
According to the study, 96% of Swedish players participated at least once with licensed companies in 2024, even though a portion of activity continues to occur outside the regulated sector.
The authority noted that betting remains better channelised than online casino play, reflecting differences in player preferences and product dynamics.
Camilla Rosenberg, Director General of the SGA, emphasised that the majority of Swedish gambling activity still flows through regulated operators.
She noted that most unlicensed traffic comes from companies not actively targeting Sweden, with only a limited share linked to websites identified by the regulator as illegally directing services at the market.
Prohibition orders remain one of the enforcement tools applied against such operators.
The SGA also confirmed that it has revised its methodology for calculating channelisation.
By combining survey responses from players with direct internet traffic measurement, the authority aims to synthesise a more accurate picture of gambling flows.
The report highlights that while both methods provide useful insights, together they offer a clearer understanding of consumer choices within the Swedish market.
Conclusions to impact gambling reform
Policy developments could soon alter the regulatory landscape. Gambling investigator Marcus Isgren is expected to present recommendations later this month that would expand the scope of the Gambling Act.
His proposal is anticipated to criminalise nearly all forms of unlicensed gambling in Sweden, marking a significant step in tightening enforcement.
While stricter legal measures may deter offshore operators, Sweden’s highly restrictive rules for licensed companies, such as tight limits on bonuses and loyalty programmes, may reduce consumer appeal.
Critics argue that without adjustments to these regulations, the regulated market risks losing competitiveness, potentially undermining future channelisation efforts.
Gustaf Hoffstedt, secretary general of the Swedish online gambling trade body BOS, echoed those sentiments in a statement.
He said: “With this assessment, the SGA confirms that Sweden’s major problem in the gambling market is online casino. It is unacceptable that around a quarter of all online casino gambling is leaking out of the licensed market.
“It is equally unacceptable that this has been accepted by political decision-makers for half a decade, since the channelisation has also been low in previous assessments, without effective regulatory measures being taken.”
The SGA’s latest findings simultaneously show both the progress and the challenges of Sweden’s gambling regulation.
With channelisation slightly down but still relatively high at 85%, the SGA faces the task of balancing consumer protection with market attractiveness.
