Sweden: Svenska Spel Tops Newly Regulated Gambling Industry
The Swedish gambling operator Svenska Spel raked in a whopping EUR 86.9 million in its inaugural two months of operation in the country's re-regulated online gambling market. This mammoth revenue is significantly higher than that generated by the new European online providers that have sprung up, solidifying Svenska Spel's hold on the market.
Top 10 Operators Control 85% of Market Shares
In the first quarter of 2019, the Swedish gambling supervisory authority, Spelinspektionen, released its business figures for the re-regulated gambling sector. Svenska Spel, which continues to dominate the Swedish market, had an incredible EUR 86.9 million in revenue. Its sports betting and online casino divisions managed to accumulate EUR 37 million, outperforming their newly-licensed counterparts.
Interestingly, more than 85% of the Q1 turnover was generated by a meager ten operators, totaling around EUR 316.4 million. The former state-owned horse racing monopoly, AB Trav och Galopp (ATG), comes in second place with a staggering EUR 64 million in turnover after its privatization.
The leading private operator in the Swedish market is the Malta-based Kindred Group. Their Swedish subsidiary, Spooniker, clocked in an impressive EUR 23.6 million in the first two months of the young year. This easily places them above Svenska Spel Casino's subsidiary, Casino Cosmopol, which earned around EUR 15 million in the same time frame.
In fourth place is British market giant, Bet365, with an overall turnover of EUR 11.2 million. LeoVegas, an online casino company listed on the Stockholm Stock Exchange, ranked fifth with a turnover of EUR 9.9 million. Following closely behind are three other online operators: Hero Gaming (EUR 7.6 million), Global Gaming (EUR 7.4 million), and Snabbare (EUR 5.8 million) who all utilize Trustly's Pay N Play solution.
Together, the ten top-performing Swedish providers account for nearly half of the total market turnover in the first quarter of 2019, which totaled a staggering EUR 556.2 million.
The Downside of a New Betting Landscape
With winners in tow, come losers. Despite having a pragmatic approach towards the newly liberalized and regulated Swedish market, the sector's revenue has shrunk by 33% in comparison to the first quarter of 2018 when the new licensing procedure came into effect. Betsson, a Swedish company, has borne the brunt of the losses, with average iGaming revenue plummeting 75% from EUR 9.5 million in Q1 2018 to EUR 2.2 million in January 2019.
The data comes from the Swedish Tax Agency and was gathered by the financial analysis company, Redeye. Redeye's financial analyst, Kristoffer Lindstrom, remarked on the drastic change in market size:
"The decline in market size demonstrates that the new rules are leading to less gambling activity from players. The consumer authority has made the gambling providers more accountable for this."
Compliance Concerns Cast Shadow on the Swedish Market
The Swedish licensing procedure was designed with the Danish model in mind and aims to open up the Swedish market to EU-licensed providers. Since inception, more than 70 licenses have been issued. However, providers in Sweden are subject to intense scrutiny by the gambling authority, Spelinspektionen. They've got their eyes set on operators' marketing practices, particularly when it comes to bonuses.
Alarmingly, Spelinspektionen has already received two complaints against newly-licensed providers. Paf and Genesis Gaming were fined for breaching license conditions, specifically for using excessive promotional language. With regulatory measures in place, Sweden's newly-regulated online sector's longevity in the European market remains uncertain.
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Source: www.onlinecasinosdeutschland.com
