Swedish web traffic to unlicensed gambling sites soars, exposing regulatory gaps

A recent report by horse race betting provider AB Trav och Galopp has revealed a significant increase in web traffic to unlicensed gambling companies in Sweden, raising concerns about the effectiveness of the sector’s regulatory framework. The report covers the period from the first quarter of 2019 to the third quarter of 2023, showing a tenfold increase in Swedish visitors to these unlicensed sites.

Hasse Lord Skarplöth, CEO of ATG, expressed his concern, indicating that this demonstrates the shortcomings of the current regulatory structure in preventing the operation of these companies in the Swedish market.

The trend is worrying. Our investigation shows the weakness of the current regulatory framework and how difficult it is to keep the unlicensed companies away,” said Skarplöth.

Hasse Lord Skarplöth

He highlighted the need for a regulatory overhaul to ensure better consumer protection, emphasizing the illegality of such companies marketing to Swedish consumers, despite many continuing to do so.

“As long as it tastes more than it costs for gambling companies to operate without a permit in the Swedish gambling market, we do not have consumer protection to be proud of,” the CEO added.

It is not illegal for unlicensed companies to be on the Swedish market. However, it is illegal to market to Swedish consumers, which many do anyway. The unlicensed gambling companies are not covered by Swedish consumer protection.

The report brought to light significant data, such as the tenfold increase in visitor traffic from Sweden to unlicensed sites since 2019, with two groups of companies, Infiniza Limited and North Point Management Ltd, being responsible for 60% of traffic in Q3. Furthermore, it was revealed that most of the top 20 most visited unlicensed sites use the same game providers as licensed companies.