Study Reveals Online Gambling Habits and Channeling Rates in Sweden

SKOP, a renowned research institute, has conducted a survey on behalf of the Swedish Trade Association for Online Gambling (BOS) to examine the channeling of the Swedish online gambling market. 

SKOP Study Uncovers 77% Channeling Rate in Swedish Online Gambling Landscape

The SKOP study involved interviews with 9,850 individuals, of which 30% (3,000 people) reported engaging in online gambling at least once per quarter. The concept of “channeling” refers to the proportion of all bets placed on Swedish-licensed gambling sites. The overall channeling rate for all types of online gambling was found to be 77%.

Among different gambling categories, lotteries and number games had the highest channeling rate, reaching 91%. On the other hand, online casinos and poker had the lowest channeling rates at 72% each. Other types of online gambling also exhibited significant channeling rates, with online horse betting at 89% and sports betting at 84%.

The research targeted individuals aged 18 and above who reside in Sweden and gamble online on sites where real money can be won. The data collection process took place digitally, utilizing a randomly and actively recruited web panel. It spanned from February 22 to March 21, 2023, ensuring a broad representation of the population.

To obtain accurate insights, the survey responses were weighted based on gender, age, and location, resulting in 288 different strata. This approach aimed to ensure that each stratum’s impact on the results corresponded to its proportion within the Swedish population aged 18 and above.

SKOP employed a questionnaire approved by BOS, focusing on participants’ recent gambling activities and knowledge of the licensing status of the gambling platforms they used. By collecting data on the amount wagered in the participants’ most recent game, SKOP aimed to minimize recall bias and errors associated with memory.

Swedish Government Calls for Improvements as It Wants 90% Channeling Rate

The Swedish Government is striving to attain a commendable rate of 90%, which aligns with the gambling participation rate of its neighboring country, Denmark, for example. However, the current reported rate of 77% falls short of this ambitious target, indicating a pressing need for improvement.

The survey comes at a time when the Swedish government has proposed an increase in funding for the Swedish Gaming Authority, Spelinspektionen, to enhance supervision and licensing processes. The proposal aims to allocate SEK2.4 million ($230,360) to the authority, facilitating efforts to combat unlicensed gambling, money laundering, match-fixing, and other threats to the regulated market. 

In May, Spelinspektionen was granted new powers, including the ability to block payments from unlicensed operators and monitor gaming company activities confidentially, as part of amendments to the country’s Gaming Act starting July 1, 2023.

Additionally, BOS expressed support for increased fees for applications and license permits, emphasizing the importance of sufficient funding for the gambling regulator.

Meanwhile, the Swedish gaming industry has reached stability, with revenue in Q1 2023 matching that of Q1 2022 at $609.3 million. Although certain verticals experienced losses, the state lottery and slots saw increased sales, indicating continued strength in the industry while ensuring player protection.