BOS Study Reveals Swedish Channelisation Shortfalls

Key Takeaways:

• BOS-commissioned research indicates Sweden's online gambling channelization rate at just 69%, far below the government's 90% target.
• Low licensed market penetration heightens risks of unregulated play, fraud, and reduced tax revenues for the state.
• Industry urges regulatory reforms to bolster licensed operators' competitiveness against unlicensed alternatives.

The Swedish Trade Association for Online Gambling (BOS) has released a pivotal study underscoring significant flaws in the country's channelization policy, with licensed online casino operators capturing only 69% of the market according to ATG estimates. Published on October 21, this analysis compares Sweden's framework to those of neighbouring Nordic nations, revealing structural barriers that hinder licensed platforms from attracting players away from unlicensed sites.

Channelization, the policy mechanism directing gamblers toward regulated operators, was introduced in 2019 to safeguard consumers and generate public funds. However, the study highlights persistent challenges: high taxes on licensed entities—reaching 22% on gross gaming revenue—coupled with stringent advertising curbs, erode their appeal. Unlicensed operators, evading such levies, offer more aggressive bonuses and broader game selections, drawing an estimated 31% of Swedish players. This gap translates to annual tax losses exceeding SEK 2 billion, per BOS calculations, while exposing users to heightened risks of data breaches and unfair practices.

Gustaf Hoffstedt, BOS Secretary General, emphasized the dual nature of these issues. "Some are rule-based, like loyalty program restrictions, but others stem from policymakers' attitudes toward the industry," he noted. The report advocates for targeted adjustments, including tax parity incentives and eased promotional rules, to elevate channelisation above 85% within two years. It draws parallels to Denmark and Norway, where similar tweaks boosted licensed uptake by 15-20% post-reform.

For the European online casino sector, this development carries broad implications. Sweden's model influences harmonization efforts under the EU's Digital Services Act, where cross-border enforcement against unlicensed sites remains fragmented. As regulators in Germany and the Netherlands grapple with analogous black-market growth—estimated at 20-25%—BOS's findings serve as a cautionary blueprint. Enhanced channelization not only fortifies player protections through mandatory responsible gaming tools but also stabilizes revenue streams for innovation in areas like AI-driven personalization.

Operators face mounting pressure to lobby for equilibrium between compliance costs and market access. Without reform, Sweden risks a bifurcated ecosystem, undermining the post-2019 licensing authorities' core tenets. Conversely, successful recalibration could inspire scalable solutions across the continent, fostering a more resilient iGaming landscape amid rising scrutiny on consumer harms. Stakeholders anticipate discussions at the upcoming Spelinspektionen forum, where BOS proposals may gain traction ahead of the 2026 budget cycle.

Sources:

• https://sbcnews.co.uk/bos-study-signals-2025/