The online casino industry in Sweden now has a 40% market share, up 19% over the past decade. Expanded regulation will drive up these numbers further.
The Swedish online casino industry has nearly doubled since 2008 according to a recent report from H2 Gambling Capital and Swedish gambling regulator Lotteriinspektionen. Online casinos now represent a 42% share of the overall online gambling market and that share is expected to grow in the near future thanks to new laws about to be enacted.
Online Casino Contributed to 42% Share of SEK22.604 Billion Industry in 2017
The Swedish online gambling market collected a combined SEK22.604 billion (around $2.77 billion USD) in 2017, an increase of 3% from 2016. Approximately 40% of this total came from online casino operations. This is nearly double the market share from 10 years ago. Back in 2008, online casinos held a mere 21% of the total online gambling market share.
When looking closely at last year’s growth, Sweden can actually thank unregulated operators for the 3% jump in revenue. Unregulated operators earned SEK4.045 billion of last year’s total, an 11% increase from 2016.
Why did foreign operators experience such growth? There are a couple of reasons. First, foreign operators have been much more innovative with their offerings than regulated online casinos in Sweden. They are offering better game selections and better overall promotions.
The other reason is marketing. Operators have increased spending in the Swedish market. Sites such as https://www.svenskslots.com/ have been regularly launching in recent years and increasing exposure for foreign operators.
Unfortunately, the growth of these unregulated providers doesn’t help Sweden’s bottom line. While they were able to take in SEK6.4 billion in tax revenue from licensed sites, they still missed out on a sizable chunk of revenue from unregulated sites. However, that’s about to change in the near future.
Future Growth Likely to Continue Due to Expanded Regulation
Seeing the growth potential of the industry, Sweden’s government is presently looking at new legislation that will expand online gambling regulation. Under the proposed changes, international operators will be able to apply for licenses from Lotteriinspektionen and begin operating in Sweden’s regulated environment.
These new regulations are expected to be pushed through. In fact, the Swedish Gambling Authority has already announced that they will start accepting applications from foreign operators starting on July 1, 2018. You can see a short list of some of the companies likely to apply at https://www.svenskslots.com/slots-casino/.
Analysts are bullish about these new regulations and predict that foreign operators will begin ramping up their promotions in Sweden to attract new players. This will, in turn, further increase growth. The fact that these operators will now be licensed in Sweden will also increase customer confidence, thus increasing overall demand for their services.
Expanded regulation is a win-win for everyone involved. Sweden receives increased tax revenues from citizens as well as licensing fees from operators. Players get increased protections and the security of knowing that their online casino is licensed. It is the perfect recipe for continued growth for the online casino industry and the online gambling industry as a whole.