Online Casinos and Betting Are Dominating Swedish Market
As far as the unregulated gambling market in Sweden goes, online sports betting continues to hold the largest revenue share over the last ten years. While these revenues for sports betting were responsible for market share, recently the numbers are trending downward. The reason, more gamblers are interested in the visually stunning world of Swedish online casinos, video slots and table games, boosting the market share from 21 percent in 2008 to a whopping 40 percent last year.
The biggest reduction for the market share fell solely in the lap of online poker. Ten years ago, Swedish poker players were the driving force behind the boom in interest for the game, and revenue was a steady 20 percent back then. Last year, online poker accounted for a measly 7 percent of the revenue share, and all signs are showing that the slide isn't going to end any time soon.
Data that was provided by the company Lotteriinspektionen, showed that Sweden’s unregulated gambling market online was worth $670 million US. The good news, the numbers are up around 17 percent from this time last year. Unregulated services are responsible for a quarter of Sweden's entire gambling revenue.
The regulated gambling market in Sweden is going to soon be expanded as the local government is trying to implement regulations that are going to allow for international operators to finally be in the position to get licenses to begin operating in the regulated market.
The new gambling laws for Sweden are going to be a game-changer. The law is supposed to take effect in 2019, but Swedish gaming officials are saying they will begin reviewing and accepting applications July 2018 from any foreign operators that are interested in joining forces.
This appears to be something that will give Sweden the chance to get back on top with gambling revenues. Sweden’s changing gambling market is attracting Europe’s largest and most profitable gambling operators, who've been targeting these local players for many years. In order to secure greater brand recognition and exposure, they've been trying to invest heavily in local advertising. Data that was recently released from the Swedish market research firm, Kantar Sifo, shows two of these international gambling companies that are expressing interest made it on the list of the top 20 advertisers in the country last year.
Kindred Group and LeoVegas, both currently based in Malta but from Sweden, spent the most money on advertising to the Swedish media in 2017. Kantar Sifo also reported that Kindred invested nearly SEK443.09 million last year, while at the same time, LeoVegas used their SEK313.1 million advertising budget on different campaigns geared towards Swedish gamblers. LeoVegas saw the biggest annual increase in advertising spending in Sweden among all of the top 20 advertisers.
Many local and global analysts think international gambling companies are going to become more aggressive in their efforts to advertise in Sweden, just as the local gaming industry is on the verge of regulations that would allow them to seek a bigger market share.