Online Gaming Generates More Than Half of Sweden's Revenue in Second Quarter

Swedish gambling regulator, Spelinspektionen, has posted the results of 2019 fiscal year's second quarter. The total generated revenue for the period of April 30th to July 30th amounted to $630 million (SEK 6.082 billion).

This represents a 3.2% increase on a yearly basis. Sweden's iGaming market was opened on January 1st.

iGaming Leads the Way

It was precisely online gaming...

...that contributed to this figure the most, with way over half of the revenue collected (56.7%) via online betting. In the first three months of the year, iGaming revenue was SEK3.36 BN, while in Q2 it was SEK3.45%. This also covers the specific vertical of gambling ships.

Land-based slot machines and state lottery organized by Svenska Spel went in the opposite direction – the revenue from these declined compared to first quarter, from SEK1.42bn to SEK1.41bn Casino Cosmopol business, that is also land-based, has grown in revenue 4.7% to SEK245,000.

A 10.4% increase for not-for-profit-lottery sales was also marked as quarter-on-quarter sales rose to 925,000.

A Good Decision That Was Well-Executed

The figures presented in Spelinspektionen's report suggest that...

...although there have been some concerns regarding regulatory changes and how this will impact the market in comparison to 2018, the report compiled by H2 Gambling Capital and Swedish Tax Authority suggest that re-regulated market was actually a good thing for Swedish society in general.

In fact, unlicensed operators' sales fell 15.4% on a quarterly basis, from SEK383K to SEK324K. During Q1, 91% of the entire gambling revenue was generated via licensed gambling operators.

83 companies and operators have been licensed to operate in Sweden as of August 2019. and that's not including non-profit organizations that also offer gambling products here. Spelpaus, country's official self-exclusion scheme is also continuing to grow. With the conclusion of second quarter on July 30th, 37,520 individuals have opted for being self-excluded from Swedish sites and blocked their access to gambling. In August, this number rose to 39,000.

Olympic Launch and a New Casino

In July, Svenska Spel signed an exclusive contract with Swedish Olympic Committee regarding a long-term sponsorship partnership. The agreement is worth over $10.7 million and was signed for a period of six years. The end date when it expires is 31st December 2026.

“SOK’s way of working with inclusion and development of sport to inspire more young people to find their sport is in line with how Svenska Spel sees sport. We want it to be open, inclusive and equal.” said Patrik Hofbauer of Svenska Spel of the agreement.

GlobalGaming's new online casino, NanoCasino is due to be launched in Sweden after this company joined forces with Finnplay last month.

Source:

“iGaming dominates regulated Swedish market in Q2”, igamingbusiness.com, August 22, 2019.