ATG Raises Concerns Over Unlicensed Gambling Operators in Sweden

ATG Sounds the Alarm on Unlicensed Gambling Operators

• ATG has raised alarms about unlicensed gambling operators functioning in Sweden.
• Out of 20 offshore websites, 17 offer casino games that are otherwise licensed in Sweden.
• ATG has also expressed concerns regarding the channelization rate in the fourth quarter.

A recent report by the state-owned Swedish gambling entity, Aktiebolaget Trav och Galopp (ATG), has highlighted troubling trends with regard to the increasing number of offshore gambling platforms. These platforms are reportedly using software from providers who are licensed within Sweden.

ATG Highlights Offshore Casino Game Availability

ATG has pointed out that among 20 prominent gambling sites, 17 are leveraging software typically employed by licensed operators. A few years ago, Sweden re-regulated its gambling market to prevent such occurrences. The regulation mandates that suppliers obtaining a license must ensure their games and products are not accessible to unauthorized offshore sites.

The report also examines the country’s channelization, a crucial metric in regulated markets. This metric helps determine if a market, post-legalization, fulfills its intended purpose of offering a safe and responsible gambling environment, which is a hallmark of legal businesses.

According to ATG’s Q4 report, Sweden’s channelization is estimated to be between 69% and 82%, which falls short of the 90% target set by the regulator and the state. Although ATG’s 69% figure might be slightly conservative, previous reports have placed the channelization rate closer to 82% or more.

Channelization varies across different gambling verticals. In ATG’s previous Q3 report, the casino channelization rate was estimated between 59% and 74%, whereas sports betting products fared better, with rates between 79% and 88%, aligning more closely with the country’s goals. This issue of channelization is not unique to Sweden.

Countries like Germany, the Netherlands, and others are also striving to address these challenges. ATG’s findings reveal that a significant number of offshore casinos are using licensed products and offering their services in Swedish without obtaining the necessary license from Spelinspektionen. Specifically, 17 out of 20 identified websites were found to be in violation.

In six cases, websites targeted Swedish players directly via BankID, a popular payment method in the country and part of the regulated sector.

ATG’s Commitment to Combating Illegal Gambling

ATG has taken steps to identify specific brands, highlighting Lucky Jungle dot com and Unlimit Casino dot com as key violators. Traffic data indicated that Lucky Jungle recorded 147,284 visits during the fourth quarter, while Unlimit Casino saw 113,002 visits in the same timeframe.

ATG has voiced strong criticism over the prevalence of illegal gambling websites operating within Sweden, which, according to ATG’s CEO, Hasse Lord Skarploth, have captured an ‘unreasonably’ large portion of the market.

Skarploth emphasized that the operator is committed to contributing to the eradication of illegal gambling in Sweden. The aim is to ensure the channelization of the gambling market remains firmly within regulated boundaries.