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Sweden’s Gaming Market Sees Improved Channelization Rates

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ATG has released its quarterly assessment of Sweden’s gaming market, highlighting a rise in the channelization of players towards licensed operators. However, the challenge posed by offshore gaming remains a considerable concern.

ATG’s report indicates that Sweden’s channelization rate has reached an estimated 74-85%, up from 70-82% in the third quarter of 2024. These figures, aligning closely with the estimations from Spelinspektionen, reveal that while progress has been made, Sweden’s goal of achieving a 90% channelization rate has not yet been achieved.

ATG suggests that the increase in channelization reflects a growing preference among players to engage with licensed companies. This shift is possibly driven by Sweden’s continued efforts to clamp down on illegal gaming practices. The company believes that making it more difficult for consumers to access offshore operators, known for offering enticing bonuses and otherwise restricted products, could enhance the appeal of licensed alternatives.

Promoting stricter regulations and enhanced enforcement, ATG argues, is essential to foster a safe gaming environment. The company has been a vocal advocate for bolstering player protections and implementing stringent measures against rule violators. They assert that these actions are crucial for creating a sustainable ecosystem where gaming is both safe and enjoyable for consumers.

Nonetheless, ATG acknowledges that current restrictions might not suffice. Their analysis reveals that 16 out of the 20 largest unlicensed gaming operators in Sweden utilize the same platform providers as those with licenses. Furthermore, eight of the top 20 offshore sites permit direct deposits via BankID, despite operating without the necessary licenses. This situation raises questions about the efficacy of current enforcement measures, especially since some banned sites continue to operate.

ATG emphasizes that a comprehensive understanding of illegal operators is critical to effectively addressing the black market issue. Only by doing so can Sweden ensure that its players are encouraged to choose legal options.

This report from ATG coincides with Spelinspektionen’s findings, which were published a few days earlier. According to the regulatory authority, Sweden’s gambling industry experienced a modest growth of 0.5% in the third quarter of 2025 compared to the same period in 2024. The total gaming revenue during this period amounted to SEK6.71 billion ($709 million).

Additionally, Spelinspektionen recently issued a regulatory warning to SkillOnNet. The notice was given after it was discovered that Prime Casino’s website, in its logged-out state, failed to display the necessary responsible gaming messaging as required by Swedish regulations.

The situation presents a dual outlook. On one hand, the rise in channelization rates is a positive sign, indicating that more players are gravitating towards licensed operators. This trend aligns with the broader regulatory efforts to establish a secure and fair gaming market. On the other hand, the persistent operation of unlicensed sites poses a significant challenge to these efforts. It illustrates the complexity of completely eradicating illegal gaming activities and the need for more robust enforcement mechanisms.

A broader perspective reveals that Sweden’s struggle with offshore gaming is not unique. Many countries face similar challenges as global connectivity enables players to access a wide array of unlicensed platforms. This raises a pertinent question: can regulatory frameworks keep pace with the evolving digital landscape of gaming?

Some industry experts argue that while increased enforcement is necessary, it might not be sufficient on its own. They contend that licensed operators need to remain competitive in terms of offerings and user experience to truly draw players away from offshore sites. This includes not only improving the range of products available but also enhancing customer service and ensuring seamless user experiences.

Moreover, the cultural and social factors driving players towards unlicensed operators must be understood and addressed. For some consumers, the allure of better bonuses and a wider selection of games might outweigh the perceived risks associated with illegal operators. This suggests that alongside regulatory efforts, there should be an emphasis on educating players about the benefits of engaging with licensed platforms, such as security and compliance with consumer protection laws.

In conclusion, while Sweden’s gaming market shows promising signs of improved channelization, achieving the desired 90% rate remains a challenging endeavor. The interplay between regulation and consumer behavior continues to shape the landscape. As Sweden moves forward, a balanced approach combining effective regulation, competitive offerings from licensed operators, and player education will be key to steering the industry toward a more regulated future.