BOS Study Reveals Swedish Channelisation Challenges

A comprehensive study commissioned by the Swedish Association for Online Gambling (BOS) has exposed significant liabilities in the country's online casino channelisation rates, with licensed operators capturing only 77% of the market compared to 90% for sports betting. Conducted by the University of Gothenburg and released on October 21, 2025, the report urges the Swedish Gambling Inspectorate (Spelinspektionen) to introduce mandatory pre-approval processes for new products and enhance resource allocation for enforcement. This analysis highlights persistent vulnerabilities in Sweden's regulated ecosystem, where offshore operators continue to erode licensed revenue despite robust player protection mandates.

• Enforcement Gaps: Spelinspektionen requires additional funding and tools to monitor unlicensed activities effectively, potentially reducing the estimated SEK 5 billion annual black market flow.
• Operator Empowerment: Licensed entities advocate for greater involvement in compliance dialogues, including access to real-time channelisation data to refine market strategies.
• Player Safeguards: Recommendations emphasize transparent bonus frameworks, akin to Denmark's capped model, to balance competition with harm prevention.

Sweden's iGaming market, re-regulated under the 2019 Gambling Act administered by Spelinspektionen, imposes a 3% gross gaming revenue tax alongside stringent advertising restrictions, including a ban on credit-based gambling since 2020. The framework mandates integration of national self-exclusion via Spelpaus and deposit limits, aiming to channel players to licensed sites. However, the BOS study reveals casino channelisation at 77%, trailing sports betting's 90%, as unlicensed platforms exploit lax enforcement and offer unrestricted bonuses. For readers unfamiliar with the jurisdiction, Spelinspektionen's remote gambling licenses—renewable every five years—require operators to demonstrate financial stability and RNG certification, fostering a €1.2 billion annual sector but struggling against a 23% unlicensed penetration.

The report, covering data from 2022 to 2025, attributes shortfalls to under-resourced inspections and the absence of product pre-approvals, which allow grey market entrants to proliferate. BOS, representing 16 major operators including Betsson and Kindred Group—both publicly listed with institutional ownership from firms like Black Rock—calls for collaborative reforms. These include empowering licensees to report suspicious activities and mandating channelisation transparency in regulatory reporting, echoing successful models in the Netherlands under the Kansspelautoriteit.

Market implications are stark in a landscape where licensed GGR grew 8% year-on-year to SEK 10 billion in 2024, yet black market estimates siphon SEK 3-5 billion. New entrants face heightened barriers, with license applications averaging 6-9 months and compliance costs exceeding €500,000 annually. The study projects that unaddressed gaps could depress channelisation to 70% by 2027, pressuring operators to innovate within bounds—such as AI-driven responsible gambling tools—while regulators risk revenue shortfalls for the Spelpaus fund.

For stakeholders, the findings signal urgency: operators gain a roadmap for advocacy, potentially unlocking 10-15% revenue uplift through tighter controls; regulators secure justification for budget increases, aligning with EU consumer protection directives; and players benefit from reduced exposure to unregulated risks, with enhanced tools like mandatory loss limits curbing harm rates below 2%. As Sweden contemplates 2026 amendments, including bonus liberalization debates, this study positions BOS as a pivotal voice, advocating sustainable growth over short-term gains in Europe's most player-centric market.

Sources: SBC News, iGaming Business