Sweden’s year of decline and regulatory challenges

Lea Hogg March 5, 2024

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Sweden’s year of decline and regulatory challenges

In 2023, Sweden’s licensed operators reported a Gross Gaming Revenue (GGR) of SEK27.1 billion (€2.4 billion), marking the first decline since the re-regulation of the sector on 1 January 2019. This figure represents a decrease of just over 1 percent compared to 2022.

The commercial online gaming and betting sector remained dominant, contributing SEK17 billion to the overall GGR. However, there was a marginal dip from the previous year’s SEK17.1 billion. Conversely, GGR from the state lottery and slot machines experienced a more pronounced decline, dropping by 3.6 percent to SEK5.6 billion. The state casino gaming sector, represented by Casino Cosmopol, saw a decrease of 11.4 percent in GGR, plummeting from SEK536 million in 2022 to SEK475 million in 2023. On a more positive note, other segments of the gambling industry, such as bingo halls, not-for-profit games, and land-based commercial gambling, including restaurant casinos, witnessed modest increases in GGR during the same period.

In Q4 2023, the sector generated GGR of SEK7.1 billion. This represents a decrease of just over 3 percent compared to the corresponding quarter in 2022. Within this sector, the commercial online gaming and betting category recorded GGR of SEK4.4 billion during Q4 2023. While this marked a sequential increase of 2.3 percent, the figure remained unchanged when compared annually.

Safeguarding Sweden’s gaming market

By the end of Q4, approximately 104,000 individuals self-excluded via Spelpaus.se, reflecting a 5 percent increase compared to the previous quarter. In the authority’s annual report, SGA director general Camilla Rosenberg, (pictured above), emphasized the increasing importance of the regulator’s mission, especially in light of the market’s first decline in GGR since re-regulation. She cautioned that the economic challenges of 2023 may have driven more people to perceive gambling as a solution to financial woes. “Our work for a safer and more secure gaming market is more important than ever,” she stressed.

The regulator also revealed that it collected SEK19.3 million in penalty fees, significantly down from the SEK81.7m in collected in 2022. However, in its annual report, the SGA highlighted that a large part of its supervisory decisions are still being appealed. Last year, the SGA raised the same concern and the Swedish government subsequently pledged to boost funding for the regulator over the next three years. Operators, as well as Swedish trade association BOS, have repeatedly called for stricter enforcement against black-market operators.

In 2023, the SGA also issued a total of 168 B2B-licences, with a gaming software licence becoming a requirement from 1 July. Additionally, there was an increase in licence applications during 2023, driven by the requirement for licence holders who received five-year licences during the re-regulation to apply for new licences to continue operating in Sweden.

The SGA said it received 946 applications (including change notifications) in 2023, up from 777 in 2022.

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