Figures Reveal Sweden Won Big in Domestic Market for 2015Published February 20, 2016 by Lee R
There is a reason monopolies exist, and the Swedish structure is a great example.
In a complicated Swedish market, 2015 figures showed that the real winner was the Swedish government.
Swedish gambling regulator Lotteriinspektionen released preliminary figures showing a 1.5% year-on-year increase in regulated market turnover to SEK 45.6b ($5.3b) for 2015. Total gaming revenue showed a similar gain to SEK 16.7b.
The more significant gain for the Swedish market was in online gambling revenue, which jumped a good 7% year-on-year for 2015 to about SEK 8b.
Foreign Competition Landscape
Sweden currently does not issue licenses to foreign operators. However, international operators can still host Swedish players, with popular casino brands such as Insta Casino, LeoVegas Casino, Jackpot City Casino and others estimated to take in some 4.4b share of that 8b total, according to Lotteriinspektionen. The other SEK 3.6b was collected by Swedish state-owned betting monopoly Svenska Spel. The growth of the share of the Swedish operator of 8% year-on-year constitutes the advantage over the international sites growth rate of 6%.
The total expenditure on gambling advertising expenditure was approximately SEK 3.3b, with roughly 70% of this spent by international operators. In other words, the majority of gambling advertising money was spent by international operators, as taxable amounts of direct foreign investment into the Swedish economy.
While foreign operators did take in slightly more online gambling revenues (4.4b to 3.6), that slight 10% advantage promises to shrink because the Swedish market is growing faster than the foreign operator market in Sweden, an advantage that required foreign investment of 70% of online advertising revenue.
Of further note is the fact that the average Swedish adult lost around SEK 2,133 to the regulated market, with the average loss to international online gambling operators over a quarter less at SEK 447.
With intake like this, its no wonder Sweden is taking its time revising its online gambling market. Adaptations are eventually expected to include the privatization of Svenska Spel, the issuing of licenses to international operators, and blocking of non-licensed foreign ISP's within Sweden. For now, Lotteriinspektionen is hitting the jackpot.