The latest Q4 study by Aktiebolaget Trav och Galopp (ATG) shows that 17 out of 20 popular illegal gambling sites use the same platform providers as licensed operators.
A report led by ATG, covering illegal gambling activities in Sweden during the fourth quarter, states that the online channelization rate ranged between 69% and 82% during this period.
This figure is significantly lower than the long-term target of 90% set by the government when the regulated online gambling market was opened in 2019.
The data for the fourth quarter was only slightly better than the 70% to 82% range reported by ATG for the third quarter.
Since 2019, unauthorized website traffic has increased tenfold
ATG's Q4 survey results indicate that traffic to unlicensed sites in Sweden has increased tenfold since regulation began in 2019.
As with the third quarter, the channelization rate for online casinos remains much lower than that for sports betting. ATG sets the casino channelization rate between 59% and 74%, while the rate for sports betting ranges from 79% to 88%.
The operator uses web analytics tools to track the online traffic of licensed and unlicensed gambling companies within Sweden.
The company states that this work will continue and be reported quarterly. "The measure of channelization is based on actual web traffic and spending assumptions per visit from a range of sources."
The survey found that 17 out of the 20 largest unlicensed gambling sites use platform providers also used by licensed operators. According to current Swedish regulations, ATG states, this should not happen.
ATG also notes that six of the sites offer direct deposits and withdrawals from Swedish bank accounts through BankID, a digital identification system in Sweden that allows players immediate access to their bank accounts.
Moreover, two of the top 20 were listed on Spelinspektionen's blacklist of unlicensed operators.
The unauthorized site Luckyjungle.com entered Sweden in the third quarter of 2023 and attracted the most traffic in the fourth quarter, with a total of 147,284 visits. The report states: "The site's traffic grew from zero to nearly 150,000 visits within a year."
Unlimitcasino.com ranked second, with 113,002 visits this quarter, but its traffic has been declining since the second quarter of last year. The third-ranked Refuelcasino.com had 94,456 visits, down from the third quarter.
The top five also include Ibet.com and GG.bet, both of which saw an increase in visitors in the fourth quarter.
Long-term trends indicate that as the quarterly visits to unlicensed sites increase over time, the channelization rate is decreasing.
ATG criticizes the channelization rate as "unreasonable"
ATG CEO Hasse Lord Skarplöth reiterated the group's desire to address this issue when commenting on the survey results. He stated that the group will continue to combat unlicensed sites until licensed operators monopolize the Swedish gambling market.
"It is unreasonable that such a large proportion of gambling activity still occurs outside the licensing system," said Skarplöth. "Unlicensed gambling is a hotbed for money laundering. But most importantly, Swedish players are not protected from rogue actors."
"Therefore, ATG will do everything we can to ensure that the fight against unlicensed gambling companies continues day after day, month after month, until licensed companies monopolize Sweden's gambling industry."
Last month, Gustaf Hoffstedt, Secretary General of the Swedish gambling industry trade body BOS, stated that the ongoing review of gambling regulations by the government is unlikely to address the country's declining channelization rate.
In an interview with iGB, he described the Gambling Act review as the government's "another repressive measure."
"More importantly," he said, "the licensed market should be made more attractive to consumers."
