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The Swedish Trade Association for Online Gambling (BOS) has revealed updated statistics on Sweden’s channelization, or the share of regulated and unregulated gambling. Based on SKOP measurements, the research includes channelization numbers for the general online gambling business as well as specific product types including sports betting and online casinos. Despite continuous market regulation measures, the report finds that Sweden falls short of the state’s target of diverting at least 90% of gaming to the licensed market. BOS emphasizes the need for a paradigm shift in order to overcome the problems that licensed operators confront and improve channelization rates.
According to the BOS research, the channelization rate for the entire Swedish online gaming sector is 77 percent. When looking at particular product types, sports betting has a greater channelization rate of 84 percent, while online casinos trail at 72 percent. These numbers imply that a considerable part of gaming activity occurs in the unlicensed gambling sector, raising issues about consumer protection and state tax income.
BOS underlines the difficulties created by certain state-imposed laws, which have harmed licensed operators and contributed to the leaking of gambling to unlicensed sites. Measures like the de facto prohibition on bonuses and betting limitations in lesser football leagues have not gone down well with gamblers. A quarter of gambling activity currently takes place in the unlicensed sector, where consumer protection and revenue contributions to the state are non-existent.
To reverse this trend, BOS claims that the state must change its mindset. Rather than concentrating efforts on penalizing licensed operators, resources should be shifted towards combatting illicit gaming companies. BOS emphasizes the necessity of not unnecessarily limiting licensed enterprises’ ability to keep consumers in the licensed market. To enhance channelization rates and solve the concerns expressed by the BOS report, this solution requires collaboration between the industry and the state.
BOS emphasizes its commitment to collaborating with the government to accomplish the goal of increased channelization in Sweden. The group advocates for a joint approach that prioritizes tackling unlicensed operators and putting in place measures that foster a vibrant and appealing licensed gambling sector. BOS believes that by taking a more balanced and proactive approach, it is possible to reverse the current trend and encourage more gambling activity into the regulated sector.
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