BOS Pushes for New Gambling Inquiry as Sweden Misses Channelization Targets

Sweden’s leading online gambling trade organization is stepping up pressure on legislators to revisit the country’s regulatory framework, warning that offshore operators remain a persistent threat and are attracting too many players. This call for action follows a recent report by the nation’s regulator, which revealed that 85% of gamblers engaged with licensed platforms.

Channelization Remains Below the 90% Threshold

Branschföreningen för Onlinespel (BOS) confirmed it had sent a letter to the Ministry of Finance urging the government to appoint a fresh, wide-ranging inquiry into the gambling sector. The association urged an updated evaluation of the ways Sweden can bolster its “channelization” rate, the ratio of gambling activity carried out with licensed operators compared to unregulated ones.

The request came just days after Spelinspektionen, the Swedish Gambling Authority, published new statistics showing that actual channelization figures did not meet the target established by the government. While the goal is for at least 90% of gambling to go through licensed entities, the latest estimate puts the rate at 85%. The numbers are even worse in the case of online casinos, where official channelization rates range between 72% and 82%.

While the figures may appear disconcerting, they nevertheless mark a significant improvement compared to the period before Sweden’s updated regulatory regime, when less than half of gambling took place in the licensed sector. However, BOS secretary-general Gustaf Hoffstedt described the situation as “severe” and warned that failure to act risks undermining the entire licensing system. 

BOS Called for Less Rigid Regulations

As BOS intensifies its calls for a broad inquiry to bolster channelization, the government has one narrower review underway. Investigator Marcus Isgren will deliver his conclusions in September on whether or not to extend the scope of application of the Gaming Act. The nation is also eyeing a ban on gambling with credit, hopefully minimizing gambling harm in the country. However, industry stakeholders doubt that such measures will be enough.

A broad inquiry tasked with preventing leakage to the unlicensed gambling market would be this government’s most important measure to strengthen the regulated gambling market.

Gustaf Hoffstedt, BOS secretary general 

BOS proposed that the inquiry should examine the strict ban on loyalty bonuses, which it believes drives some customers to offshore companies offering more generous promotions. The group is calling for less rigid rules while still preserving safeguards against excessive play. However, lawmakers appear resistant to significant changes, preferring to curb illegal gambling through bans and blocks.

Despite challenges, regulators have drawn attention to successful crackdowns against illegal advertising and payment channels, limiting the visibility of black market platforms. However, the BOS argues that incremental improvement is not enough. With elections closing in, the trade body is making the case that protecting the licensed sector should be considered not only a consumer issue but also an economic and political priority.