The latest report from Aktiebolaget Trav och Galopp (ATG) for the fourth quarter indicates a persistent decline in channelisation rates across Sweden.
ATG Sweden According to ATG’s report, the estimated channelisation rates for gaming in Sweden during the fourth quarter are projected to be between 69% and 82%. This significantly lags behind the Swedish government's goal of achieving 90% channelisation to legal operators.

The rate of channelisation has decreased since the third quarter of 2023. ATG observes minimal indications that the trend is slowing down.

ATG has reported a significant rise in visitor traffic to unlicensed operators, with an increase of tenfold since 2019. The study reveals that among the 20 unlicensed websites attracting the most traffic in the fourth quarter, 19 utilised the same platform providers as their licensed counterparts.

Furthermore, among the 20 illicit platforms highlighted in the report, none appeared on the prohibited list maintained by the Swedish authority, Spelinspektionen.

“This is a concerning situation, and our findings indicate that further action is necessary to prevent unlicensed companies from operating,” said ATG chief executive Hasse Lord Skarplöth. “The presence of unregulated gambling poses a significant risk to the Swedish gambling landscape and particularly affects those who are vulnerable and struggling with gambling issues.”

ATG seeks assistance from Swedish banks
Sweden has been making headlines recently, capturing the attention of many with its unique developments and cultural significance. The country continues to be a focal point for various discussions and analyses, showcasing its influence on the global stage. ATG Participants in Sweden continue to have the option to utilise bank accounts for deposits and withdrawals related to illicit betting activities.
Among the 20 unlicensed platforms that attracted the highest traffic in the fourth quarter, seven provided options for direct deposits and withdrawals from Swedish bank accounts. Individuals operating in the underground economy have the ability to utilise the identity verification service provided by BankID in conjunction with the payment platform Krofort.

Skarplöth has urged banks in Sweden to stop these transactions and redirect them to the legal market.

“Given our findings, it is unreasonable for the Swedish Gambling Authority and banks to enforce stringent anti-money laundering standards on licensed gambling companies while simultaneously overlooking unlicensed operators,” Skarplöth stated.

The issue of illicit trade in Europe

Germany is among the nations grappling with significant challenges related to the black market.
Although certain European nations thrive in channelisation, Germany and France find themselves grappling with challenges posed by the black market.

A recent study conducted by the University of Leipzig revealed that almost 50% of online gambling activities in Germany are carried out with unlicensed operators.

According to the research, it is estimated that a significant portion, specifically three-quarters, of online revenue in Germany comes from the black market. Consequently, there is a significant loss of hundreds of millions of euros in tax revenue.

During a conference held in October, it was reported that licensed operators in Germany are facing unprecedented pressure from the black market.

In France, the national gambling authority, l’Autorité Nationale des Jeux (ANJ), has assessed that the underground gambling sector in the country could be valued at as much as €1.5bn (£1.28bn/$1.62bn). This figure represents over 10% of the annual total wagers placed nationwide.

A recent study conducted by PwC estimated that the gross gaming revenue from illegal gambling ranges from €748 million to €1.5 billion. This would be responsible for between 5% and 11% of France’s total gambling market, which was worth a record €12.9bn in 2022.

ATG reports an increase in net profit for FY2023
ATG Sweden has successfully navigated obstacles in the Swedish market, resulting in an increase in net profit.
Amidst worries regarding channelisation rates in Sweden, ATG has announced a 7.5% increase in net profits year-on-year, reaching SEK1.45bn (£111.2m/€129.9m/$140.9m) for its financial year 2023.

Total group revenue saw a slight decline, reaching SEK6.04bn, while net gaming revenue experienced a modest increase of 0.9%, totalling SEK5.27bn.

“I am proud of the figures from 2023,” Skarplöth stated. “ATG experienced growth despite the overall gambling market remaining stagnant.”