Swedish Online Gaming Market Size Analysis
Online gambling has been one of the best performing industries in many countries this year. And no one is surprised. At a time when COVID-19 forced nearly every country into a lockdown, only Internet-based businesses and those that provide essential services remained in operation.
Fortunately, online gambling has been a lifeline for many economies in these trying times. It helped New Jersey and Pennsylvania cushion budget deficit with all other businesses collapsing. In the UK, the demand for online casinos and sports betting has been so high that MPs wanted to lower daily betting limits.
Unfortunately, things have been different in Sweden. Online gambling’s demand fell flat in the first and second quarters of 2020. This came a s a surprise, though, because the government had already implemented a maximum weekly betting limit of SEK 5000 (€476) after reports people would bet more.
That said, here’s an overview of the online gambling market in Sweden in 2020.
Although the demand for online casinos declined in the first half of 2020, the industry recorded a year on year growth. Precisely, the sector rose by 3.6% to hit SEK 3.6 billion (€348 million). However, not all sectors made profits in the same period:
- Lottery and gaming machines—through Svenska Spel—recorded SEK 1.2 9 billion, an 8.5% year on year loss.
- Not for profit lotteries recorded a 2.7% annual profit to hit SEK 950 million.
- Lottery website Tur made a 3.3% profit
The online casino sector in Sweden was mushrooming at a steady pace before COVID-19. The country had just put an end to Svensk Pel’s monopoly in casino and sports betting. And for that reason, new betting websites were cropping up everywhere.
But after COVID-19 forced Sweden into a lockdown, people reduced their gambling habits. Sports betting faired a tad better—it grew 5.2% annually to reach SEK 3.66 billion.
Foreign Casinos Increasing Dominance
One of the reasons Swedish online casinos decreased revenue this year is that gamblers found better alternatives…sort of. You see, Sweden has no control over foreign operators. And for that reason, these companies keep targeting Swedish players.
Of course, offshore casinos must be doing something right for Swedish players to choose them over home-based operators. Normally, gamblers look for bonuses, high-paying games, competitive odds and fast payouts in a gaming website.
Most casinos based in the UK and Malta provide all the things players want and in generous portions. For example, they have bigger bonuses that companies based in Stockholm provide. And they process payments fast, usually while also allowing high withdrawal limits.
In case you’re wondering, casinoutansvensklicens.co/ can help you find a trustworthy online casino without a Swedish license. As mentioned, these websites are already targeting Nordic players. And as such, you shouldn’t have an issue creating an account, playing or withdrawing your money.
New Gambling Laws
As we mentioned earlier, Sweden introduced a new gambling act January last year. Under the new act, online casino games and sports betting would no longer be provided by a monopoly organization.
Instead, investors are welcome to apply for gambling licenses from the Swedish Gambling Control Board. However, the new gaming act consist of a lot more rules. For example, there’s a new council to investigate match fixing.
On the flip side, new casinos are required to pay 18% of their profits as tax. Players don’t need to pay taxes when playing at a Sweden-based casino. But they are expected to report profits made at foreign websites.
Although online gambling is no longer under the control of a monopoly, some government agencies are allowed to provide non-profit games. For example, they can offer lotto and bingo games but the profit is donated to charities.
Technological Dependency Increasing
Amid technological growth, Swedish casinos are turning to new inventions for growth. Some companies now provide VR to help players experience casino gaming in an immersive way. Others have implemented 3D graphics on nearly all slot machines.
Crucially, multiplayer casino games are everywhere. Popularly known as live dealers, these games let you play poker, blackjack or roulette with friends. The bets haven’t increased and you don’t really need a gaming machine.
With live casino games, the primary requirement is access to the Internet and a web camera. For bankrolls; most casinos welcome you with bonuses. But let’s not kid ourselves. You’ll also need to fund your account at some point.
Changing Consumer Behaviors
Another trend in the Swedish online gaming market is that people are betting les often but bigger amounts. In other words, there’s an increase the in the number of enthusiastic gamblers. But there’s a general decline in the number of players that use Swedish casinos.
On the flip side, more people are using mobile devices for betting. This coincides with the overall growth of smartphones in Sweden. In fact, some authorities believe mobile gaming is such rampant that it is the betting choice of over 50% of the population.
There are several reasons for that. For starters, mobile casino games are as seamless as their desktop versions. You can use an android or iOS device. You could play a video slot or a blackjack. Regardless, you get a lovely gaming experience akin to using a standard desktop.
Increasing Payment Options
Before Sweden passed a new Gambling Act last year, banks and credit cards only supported payments to local casinos. But with gaming being an open market, these days, more payment companies accept payments to casinos.
In other words, players have a broad range of banking options. And due to that, they have a wider selection of online casinos and betting websites to use. Most of these payments support small and big deposits, which attracts lots of casino players with varying budgets.
Summary and Conclusion
Online gambling in Sweden is in the right direction. Here’s why. There’s a new Act that allows competition. And it lets players gamble without paying taxes on their wins. On the flip side, the new breed of online casinos in Sweden seem better than what’s in the market: bigger bonuses, more games and faster payouts.
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