Report: Sweden’s online casino channelisation rate could be as low as 72%

Sweden’s licensed online gambling channelisation rate could be as low as 72%, according to a new report from Copenhagen Economics.

The report – commissioned by Swedish trade association BOS – estimates online casino channelisation to be between 72%-78%, with sports betting channelisation rates ranging between 80%-85%. The research was conducted by Nordic consultancy Copenhagen Economics.

Researchers conducted a desk study of previous official data, as well as interviews with operators and a survey of more than 1,000 players conducted in conjunction with Ipsos MORI in February 2020.

Questions were tailored to focus on channelisation for each vertical as well as behavioural determinants for gambling. The report examined the degree of competition, the channelisation rate of each vertical and whether that rate was rising or falling.

In November, the Swedish Gambling Authority (SGA) released data from H2 Gambling Capital which claimed a channelisation rate of between 85%-87% across all online verticals. This was significantly lower than its initial September 2019 estimate of 91% after the market re-regulated.

The Copenhagen Economics research also claims that Global Gaming’s Ninja Casino brand, which was stripped of its Swedish licence back in June 2019, operates a 12% share of the Swedish online casino market. This figure has caused some discussion about the accuracy of the report on Twitter.

According to survey data, LeoVegas has the largest share of the online casino market at 15%.

In terms of sports betting, the data claims 70% of the market is dominated by four operators: Svenska Spel, bet365, Kindred Group’s Unibet brand and Betfair.

The report found that licensed casino site operators and sports betting firms are the subject of “fierce competition” from unlicensed sites. However, the degree of competition in the horseracing and lottery sectors is limited due to “decades of prior legal privileges” afforded to monopoly operators Svenska Spel and ATG.

More than half (58%) of survey respondents said they would consider gambling on unlicensed sites because of the better bonus schemes offered by these operators.

BOS CEO Gustaf Hoffstedt said the report provided evidence of the “heavy pressure” being exerted on the regulated Swedish market by unlicensed operators.

“It is irresponsible to even consider further restrictions towards the locally licensed operators in those verticals, since we know that such restrictions push the punters away from the licensed market to the unregulated illegal market with its non-existent consumer protection,” said Hoffstedt.

Hoffstedt has called for the withdrawal of proposals announced last week to cap bonuses and weekly deposits.