Introduction: Profound and complex change
Introduction: Profound and
complex change
The transition to a fully
regulated market next
year marks the end of
a long and laborious
process and will see the
grey market giants pit
their wits against two
powerful monopolies
4
T
he news in mid-June that
online gambling licences
will be available from the
Swedish authorities from 10 July
set the seal on the latest market
transformation from unregulated to
regulated in Europe.
It marks the end of a long and
laborious process. Almost from the
first inception of online gambling,
Sweden has been a grey market of
note. Indeed, it might be said that it
was the original grey market in that
it displayed the key characteristics
that defined the continental
European scene for the best part of
the first decade of this century.
Long arguments at both the
national and European level, and
much unregulated revenue later,
the market will officially open on 1
January, 2019, affecting what the
government has said is a “profound
and complex” move.
While the current position and
market share of the leading grey
market operators will have a telling
influence on the shape of the
market from next year, they will
come up against two powerful and
determined former monopolies in
the form of Svenska Spel and ATG.
On the face of it the 18% tax
and the consolidated and listed
status of the leading operators in
the market gives the government a
good chance of reaching its target
for channelisation.
This however comes with several
caveats, not least the unintended
consequences of the first-time-
player-only bonusing element of
the legislation.
Doubts also linger among the
offshore operators over whether
there will be sufficient separation
between the competitive and
exclusive rights parts of Svenska
Spel’s business in the dot.se market.
That said, optimism among
stakeholders that the framework
will deliver a functional, sustainable
and successful market to match
that in neighbouring Denmark
remains high.
The following report will delve
into the current state of the grey
market and look ahead to what will
be the shape of the Swedish online
gambling scene post-regulation.
Talking to market participants
and commentators, it gives a
view on where consensus believes
the Swedish market will head in
the years immediately following
regulation, and goes through
some of the continuing arguments
about how the market should be
governed by the authorities.
Sweden: The transition to regulation in one of Europe’s most advanced digital markets