ATG Worried about Persistent Swedish Channelization Decline

Countries across Europe have implemented different laws when it comes to gambling activities. While some jurisdictions on the Old Continent have stringent laws regulating iGaming, in others the rules are rather lax. Regardless of whether or not the regulations are strict, the black market continues to threaten the legal sector and gambling regulators in many countries fight to ensure channelization toward legal offering.

In Sweden, the government has set an ambitious plan for channelization of the customers toward the legal sector. With a 90% goal for channelization, recently released results reveal that this target may be way too ambitious, at least for the current status of the market. Sweden’s former horse racing monopoly, Aktiebolaget Trav och Galopp (ATG), released its latest report, highlighting details regarding its performance for the fourth quarter of 2023.

In its report, the company raised the alarm about the ongoing negative impact of the unlicensed gambling industry. ATG warned that the Q4 results marked another quarter where a decrease in the channelization rate toward the legal market was observed. In its third quarter report, the company estimated a channelization rate in Sweden between 70% and 82%. However, in Q4, that rate continued to drop with the latest figures showing a channelization rate between 69% and 82%.

Ultimately, ATG criticized the government for the ineffective regulations, saying that it is alarming to see an ongoing decrease in the channelization rate toward the legal market. Additionally, the company said that there are no signs that this negative trend will halt anytime soon.

ATG’s Boss Encourages Banks to Block Transactions to Unlicensed Operators

Hans Lord Skarplöth, ATG’s CEO, commented on the topic, explaining that it is worrying to see the growth of the unlicensed gambling sector. Citing research, he said the company determined that additional measures need to be taken against unlicensed operators.

“It is a very worrying development and our research points that more needs to be done to keep unlicensed companies away.“

Hans Lord Skarplöth, CEO at ATG

Skarplöth spoke about the growing concern regarding unlicensed gambling in Sweden. He added that such operators represent the biggest threat to the country’s legal gambling industry.  Skarplöth said that unlicensed operators prey on people addicted to gambling and vulnerable groups.

Surprisingly enough, ATG found out that the leading unlicensed betting operators are powered by the same platform providers that supply solutions for licensed Swedish gambling operators. In conclusion, Skarplöth encouraged banks in the country to implement bans for transactions with unregulated gambling operators in an effort to reduce the flow of customers.