Advertising Spend in Swedish Gambling Market Hits Lowest Level Since 2016

Over the past year, the Swedish gambling market saw a large decrease in advertising spend, with operators investing SEK3.40 billion (£244.6 million/€286.3 million/$311.1 million). This represented a 15.0% decrease from the previous year’s expenditure of SEK4.00 billion, the lowest figure since statistics was first reported in 2016. The numbers, issued by the regulatory organization Spelinspektionen, show a significant drop from the market’s peak of SEK7.30 billion in 2018.

Traditional advertising spend in the regulated Swedish market has steadily fallen since the market’s relaunch on January 1, 2019, and the consequent exodus of unlicensed brands. The rigorous crackdown on unauthorized operations by Spelinspektionen, as well as the exit of non-licensed operators, contributed to the decrease in advertising expenditure. The trend continued for the next two years as focus switched to regulated activities.

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The shift towards digital marketing can also be related to the fall in traditional advertising spend. Operators have increasingly used digital platforms like social media to communicate with customers, resulting in lower spending on traditional communication channels. Digital advertising allows you to target specific consumer segments, direct traffic to gaming platforms, and advertise gambling services at a low cost.

Despite effective attempts to curb illicit gambling and marketing, concerns about channelization in the Swedish market continue. According to a recent assessment by Sweden’s Online Gaming Industry Association (BOS), just 77% of the online gaming market is channelized, far short of the country’s 90% target. BOS emphasized the crucial importance of the poor channelization rate and urged additional efforts.

Sweden’s government awarded Spelinspektionen more powers to tackle unlawful gaming in response to growing issues. These regulations primarily targeted payment providers and increased Spelinspektionen’s regulatory authority in this sector. Payment providers must now supply Spelinspektionen with particular information, including details on any payments made to or from unregistered businesses in Sweden.

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Furthermore, Spelinspektionen recently established supplier license fees, charging a fixed price to organizations who offer gaming software to Swedish operators. Unless particular exemptions apply, the regulator requires separate fees for each license held.

Swedish lawmakers are also considering increasing penalties for gambling companies who violate the country’s Money Laundering Act. The goal is to equate the penalties with those for violations of the Gambling Act, as Money Laundering Act infractions are frequently deemed more serious.

The post Advertising Spend in Swedish Gambling Market Hits Lowest Level Since 2016 appeared first on iGaming.org.

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