The Spend On Traditional Gambling Advertising Spend Decreased In Sweden.

Operator spending decreased by 15.0% from SEK4.00bn in the prior year to SEK3.40bn (£244.6m, €286.3m, or $311m).

The statistics provided by the regulatory body Spelinspektionen also revealed that this was the least amount spent since the data's initial release in 2016. The sum for 2022 was also a far cry from the 2018 peak of SEK7.30 million.

In 2019 and 2020, Sweden saw a two-year fall in spending, with SEK5.70 billion and SEK3.70 billion spent, respectively. The spending then marginally grew in 2021 before declining again the previous year.

"Traditional" marketing

Spelinspektionen found that since the figures represented gross advertising expenditures, discounts were excluded. Additionally, the data only covered "traditional" media, which includes print, television, radio, and outdoor advertising. Some digital items were also included.

The data, however, does not apply to online video, keyword advertising, or social network advertising.

According to a breakdown of advertising spending in 2022, 30% of it was devoted to the gambling industry, much of it for online casinos. Horse betting apart, sports betting came in second place with a 28% share of the year's advertising budget.

About 26% of the money was spent on lottery-based games, with 12% going to horse racing wagers and 4% going to bingo, mostly online.

Market oversight

Following the reopening of the Swedish regulated market in 2018, traditional advertising spending has been dropping almost steadily. On January 1, 2019, the new market launched, and many unlicensed brands left the country at that time.

Advertising expenditure decreased as a result of the widespread departure from Sweden and Spelinspektionen's crackdown on illegal behaviour. The following two years saw a continuation of this pattern as the focus shifted to regulated activities.

However, the move to digital marketing may also contribute to the fall in traditional advertising spending. There is a decrease in the amount of money operators spend on traditional media advertising as more use digital platforms like social media to communicate with customers.

Brands can target specific consumer demographics using digital advertising, which is frequently less expensive than traditional media. To make it easy for gamers to access gambling services, it also enables operators to provide direct links to their websites and platforms.

Worries About Channelization

There are still concerns about channelization in Sweden, despite the fact that gambling regulation undoubtedly helped combat illegal gambling and its marketing.

According to a survey published last month by Sweden's Online Gaming Industry Association (BOS), 77% of the country's online gaming business is channelized. According to the BOS, this was "critically low" and required action.

Sweden presently has 90% of its licenced gaming offerings on the market, which is the country's channelization target.

The BOS secretary-general, Gustaf Hoffstedt, stressed the gravity of the poor channelization rate:

• "There is no doubt that the Swedish licensing system is in a serious situation," he said. "Far too much power has been spent on the part of the state to force the licensed gambling companies to implement measures that have not been well received by gambling consumers."

Greater-Scope Of Authority For Spelinspektionen

The Swedish government handed Spelinspektionen a number of additional measures to aid in the fight against illegal gambling not long before the report was published.

The main changes concerned payment processors and the regulatory authority of Spelinspektionen in this area.

Payment service providers are now obligated to give Spelinspektionen-specific information. This includes specifics on whether payments to and from unlicensed operators in Sweden are processed through their systems.

Spelinspektionen started requiring licence holders of suppliers to pay fees earlier this month. Beginning on July 1, Spelinspektionen will charge a set price to the company that holds the licence to deliver gaming software to Swedish operators.

Unless a special exemption applies, the regulator requires enterprises to pay a separate charge for each licencing they have.

Also, last month, it was revealed that Swedish lawmakers would be debating a plan to raise fines for gambling companies who violate the nation's anti-money-laundering laws.

The proposal would raise the maximum penalty for breaking the Gambling Act to the same amount.

Currently, the maximum fine operators can receive for breaking the Money Laundering Act is substantially smaller than the maximum fine for breaking the Gambling Act. According to the paper, this is "unsatisfactory" because crimes of the Money Laundering Act sometimes carry a heavier penalty than those relating to the Gambling Act.