Swedish Regulator Confirms Slight Dip in Q3 GGR Shortly After Penalizing Unlawful Activities
Author:
Muhammad Gregory
The Swedish Gambling Authority, Spelinspektionen, recently published financial results for the third quarter of this year. After accumulating SEK 6.7 billion in Gross Gaming Revenue (GGR) from license operators in the jurisdiction, a slight revenue decrease of 0.6 percent was recorded. Revenue from the land-based gambling segment recorded the highest year-on-year (YoY) increase, while the revenue from other segments remained steady or decreased. Spelinspektionen published the Q3 2023 financial analysis shortly after the regulator banned two illegal operators and slapped a licensed one with a fine after an Anti-Money Laundering (AML) breach.
The state-run gambling monopoly in Sweden ended at the start of 2019, when the country switched to a license-based gambling market, enabling offshore operators to enter the market for the first time in their regulated history. As Svenska Spel lost its right to be the sole gambling services provider in the country, Spelinspektionen remained in charge of nationwide gambling supervision and regulation. The Authority grants operator and supplier licenses after a thorough background check for authenticity, credibility, and reputation in the global gambling market. As things stand, the Swedish gambling market is dominated by many renowned online gambling operators, due to which the GGR has grown steadily over the past four years. The online casino and sports betting segment is the most popular betting segment in the country. The pandemic of 2020 forced land-based casinos to shut down temporarily as gamblers and bettors resorted to online gambling options to fulfil their needs. The land-based segment has grown post-pandemic but is nowhere close to the online gambling segment. The other active segments in Sweden include bingo, lotteries, and slot games.
Sweden’s gambling market remains steady in Q3 2023.
?Lukas Blazek/Unsplash
Earlier this year, a Swedish iGaming Market survey confirmed that 12 percent of the nation’s total population gambled on licensed online casino platforms. Furthermore, 44 percent of these gamblers were active every month. As gambling activity in Sweden remains high and steady, Spelinspektionen has to ensure the highest regulatory standards to ensure the safety of the players. These standards must comply with European gambling norms to keep several illicit activities at bay. The regulator, like many others, is locked in a fight against illegal gambling operators that are trying to enter its jurisdiction. Over the years, the Swedish Gambling Authority has banned several gambling operators that had made their services accessible to Swedish players without obtaining a valid permit. Recently, an investigation by the Spelinspektionen put two unlicensed operators – Monorail Limited and Perfect Storm – under the spotlight of the Swedish regulator. The Curacao-based operators were active in the Swedish market but held no gambling license. Monorail Limited operated via csgoempire.com, while Perfect Storm enabled Swedish players to gamble on csgo500.com.
These were just the primary domains of the two illegal operators who owned other websites accessible in Sweden. After the investigation, the Swedish regulator immediately banned all domains held by the Curacao-based operators and reiterated its stance against illegal gambling, specifying what the regulator looks at when investigating an operator to check if it violates Sweden’s gambling law. Apart from illegal operators, the Spelinspektionen is also responsible for keeping an eye on licensed gambling companies to ensure compliance with the nation’s gambling law. In addition to the basic gambling laws in almost every centrally-regulated European jurisdiction, the regulator strictly monitors a licensed company’s compliance with anti-money laundering (AML) and terrorism financing guidelines. Recently, the Authority concluded its investigation of Videoslots Ltd. The inspection commenced in the fall of 2021 and was conducted to see the operator’s methods for customer knowledge, risk profiles, and awareness measures. After a thorough investigation, the regulator discovered that Videoslots did not implement sufficient measures to comply with the AML guidelines, so the regulator issued a fine worth SEK 9 million.
Revenue Almost Steady in The Third Quarter This Year
Shortly after acting against the illegal activities, Spelinspektionen published the revenue report for Q3 2023. The activity in the gambling market has remained steady, which is reflected in the latest financial report, as the GGR has declined marginally. In the corresponding quarter last year, the GGR was SEK 6.77 billion. In Q3 this year, it recorded a 0.6 percent YoY drop and fell to SEK 6.73 billion. The online gambling segment remained the biggest as it roped in 64 percent of the GGR after accumulating SEK 4.25 billion. However, the segment revenue recorded a 1.4 percent YoY decrease.
The State lottery and slot games were the second-largest segment in this year’s third quarter, as the revenue remained steady at SEK 1.40 billion. The Casino Cosmopol segment dropped 11.4 percent YoY from SEK 149 million in Q3 2022 to SEK 132 million in Q3 2023. However, the segment recorded a 4.7 percent quarter-on-quarter (QoQ) increase after reeling in 126 million in the preceding quarter this year. In contrast, the lottery segment dropped 8.2 percent QoQ but rose 2.2 percent YoY after reeling SEK 822 million. The community games and bingo segment remained steady and generated SEK 49 million, while the land-based segment recorded the most considerable growth as it rose 31 percent YoY and 53 percent QoQ to reach 81 million in Q3 2023.
Spiffbet Entered the Swedish Gambling Market Last Month
The GGR may not have shown a significant increase in gambling revenue in the third quarter of this year, but gambling activity in Sweden is certainly increasing. Week after week, more and more offshore operators are applying for a Swedish gambling permit to expand their European presence. Along with these private companies, many local operators are also trying to make their mark in the increasingly competitive market. The local gambling operators and solution providers also need a Spelinspektionen-approved license to enter the regulated Swedish gambling market.
Spiffbet is the latest local operator granted an iGaming license by the Swedish Gambling Authority. The decision was confirmed last month after the operator launched a new digital brand called Supersnabbt for the Swedish players. Using this brand, the operator will provide its players with online casino services. Spelinspektionen granted the gambling permit to the local operator shortly after Million Games partially acquired the brand. Spiffbet sold its games development wing earlier this year because it failed to make any substantial contribution to its operation.
