Majority of Swedes uncertain about the legal status of their gambling venues: Survey indicates 72% of Swedish residents are unaware if their gambling spots comply with regulations.
In Sweden, a colossal conundrum is brewing among gamblers: distinguishing between legal and illegal gambling platforms. The Swedish Gambling Authority (SGA) is raising red flags about the country's consumer protection and regulatory effectiveness, primarily because more than 70% of Swedish gamblers can't pinpoint the difference between licensed and unlicensed gambling products.
According to a survey conducted by research firm Enkätfabriken in November 2023, out of the 1,644 individuals sampled, 1,164 had gambled in the previous 12 months. Despite an upsurge in awareness around licensed gambling and a boost in the share of the local license being a decisive factor for an operator (42% vs 28% the year prior), most gamblers remain unsure. When questioned about the benefits of licensed operators, just over half (47%) were affirmative, while another 47% were clueless, and six percent saw no advantage. This ambiguity is particularly evident among younger players, with only 27% of 18 to 19-year-olds prioritizing legal operators compared to 52% among the elderly.
While concerns over non-payment, insecure handling of personal data, and increased gambling problems are reasons to sidestep unlicensed websites for many, a surprising eight percent of respondents admitted to gambling on illegal platforms to dodge taxes on their winnings.
Gustaf Hoffstedt, the Secretary General of Sweden's gambling trade body BOS, believes that most gamblers are unaware of the advantages of choosing licensed operators. He implored the government to invest more effort into bolstering the legality, urging: "Licensed companies must be empowered to offer more enticing options." While SGA initially considered a seal of approval to help users detect licensed sites, the idea was scrapped due to fears that illicit operators might replicate it. However, numerous legitimate operators now showcase the SGA emblem as a mark of security.
Channelization remains a concern, with Swedish horseracing operator ATG estimating that legal platforms account for only between 69 and 82% of online gaming activity, far from the regulator's 90% target. While gambling from home is on the rise (91% now gamble online), Sweden recently decided to shutter its last land-based casino. The government is in the midst of reviewing gambling regulations to address these predicaments, but experts warn that drastic reforms might be necessary.
In Europe, efforts are being made to shape the startup economy and strengthen consumer protection. For instance, various measures are being implemented to enhance consumer awareness about the benefits of licensed gambling platforms, increase regulatory oversight, and tackle the black market through stricter controls on suppliers. This push for a safer, more transparent, and legally compliant gambling environment is crucial for protecting consumers and upholding the integrity of the industry.
- Gamblers in Sweden are finding it challenging to distinguish between licensed and unlicensed gambling platforms, as revealed in a survey conducted by Enkätfabriken in November 2023.
- The Secretary General of Sweden's gambling trade body BOS, Gustaf Hoffstedt, highlighted the importance of gamblers being aware of the advantages of choosing licensed operators, urging the government to invest more effort into bolstering the legality.
- In a bid to address the concerns over channelization, the Swedish Gambling Authority (SGA) is focusing on enhancing consumer awareness about the benefits of licensed gambling platforms and increasing regulatory oversight, echoing the broader efforts being made in Europe to shape the startup economy and strengthen consumer protection.
