In an industry update for the Swedish gaming sector, the latest preliminary data has shown that Sweden’s gambling revenue faced a downtrend in 2023, dipping by 1.2% to reach SEK27.13bn. This comes after reports from the national regulator Spelinspektionen indicate a fall from the previous year’s total revenue of SEK27.45bn.
Digital platforms, which have typically led the market, also reflected this contraction. Online gambling, despite being the mainstay for gambling income, decreased slightly by 0.7% and brought in SEK17.03bn, standing in sharp contrast with the impressive 6.0% growth that was recorded back in 2022.
The state-run lottery and slot machine segment didn’t fare any better, with their revenue dropping by 3.6% and finishing off at SEK5.60bn. Bricks-and-mortar establishments, such as the state-owned Casino Cosmopol land-based casinos, also grappled with revenue setbacks, experiencing a substantial fall of 11.4% to SEK485m.
On the flip side, there were sectors within the gaming industry that saw positive shifts. Revenue for national lotteries rose by 1.4% to SEK3.60bn, marking a rare instance of growth amidst widespread declines. Similarly, public games revenue saw an uptick of 9.3% to SEK199m. Moreover, the land-based commercial gambling sector managed to eke out a modest 2.3% increase, with revenue advancing to SEK225m.
A closer look at the final quarter of 2023 suggested a continued challenge. Total revenue for Q4 totaled SEK7.10bn, a decrease of 3.2% compared to the same period the year before. Nonetheless, Q4 did deliver a slender climb in online gambling revenue by 0.23%, reaching SEK4.40bn, an optimistic sign after previous consecutive declines.
State lottery and slot machine segments in Q4 weren’t as fortunate, witnessing a significant 14.8% decrease in revenue to SEK1.44bn. Casino Cosmopol also continued to struggle during this period, with revenue collapsing by 33.8% to SEK92m.
Alternatively, within the various market sectors in Sweden, Q4 brought some financial relief. National lottery revenues rose by 5.6% to SEK1.07bn. Public game revenues remained stable at SEK46m, although the land-based commercial segment registered a slight revenue dip of 3.5% to SEK56m.
The release of these figures is set against the backdrop of looming regulatory modifications. The Swedish government, in the preceding month, unveiled intentions to impose a more stringent prohibition on credit-driven gambling. This move would extend the existing Sweden Gambling Act, which already disallows licensed operators from offering credit services to players.
The heightened regulation is expected to include a comprehensive ban on deposits or wagers that are funded through any form of credit, irrespective of the credit’s point of issuance or mode of provision. Credit card usage for these purposes would specifically be targeted. These proposals underscore a commitment to increase consumer protection, with a focus on enforcing operators to implement robust measures discouraging excessive gambling behaviors.
Sweden’s northern neighbor, Norway, along with several other significant gambling markets, has already adopted similar restrictions. Observers are keen to monitor the implementation and impacts of such measures on the gambling landscape.
The presented figures and the impending regulatory changes in Sweden’s gambling market underscore a period of transition and reflection for the industry. While online platforms and traditional venues adjust to the financial ebbs and flows, the overarching narrative is one of governments actively seeking to mitigate gambling-related harms and protect consumers through tighter legislation and oversight.
