BOS calls for broader gambling inquiry in Sweden

The Swedish Trade Association for Online Gambling (BOS) has formally requested the Ministry of Finance to reconsider the ongoing gambling industry inquiry. The association is calling for a broader and more comprehensive investigation to address challenges faced by the legal and licensed gambling sector, particularly in relation to low channelisation rates.

This development follows a recent report by the Swedish gaming regulator, Spelinspektionen, which highlighted significant gaps in the regulatory framework for online gambling. Stakeholders argue that the existing inquiry, led by government investigator Marcus Isgren, may be too narrow in scope to achieve meaningful reform.

Background: Sweden’s gambling market and channelisation concerns

Sweden operates a regulated gambling market with clear licensing and compliance requirements. Channelisation, which measures the share of gambling conducted through licensed and regulated operators, serves as a crucial indicator of how effectively regulations are functioning. A high channelisation rate ensures that gambling revenues are captured by licensed operators, which contributes to public funding and consumer protection.

Recent findings from Spelinspektionen indicate that the overall channelisation rate in Sweden stands at 85%, which is below the 90% target set by the regulator. While sports betting exceeds this goal, with channelisation rates between 92% and 96%, the online casino sector significantly lags behind, with rates ranging from 72% to 82%.

These figures underscore a persistent challenge: a notable proportion of gambling activity is occurring outside the regulated framework, creating potential risks for consumers and reducing contributions to public coffers.

The current inquiry and its limitations

The Ministry of Finance commissioned Marcus Isgren to conduct an inquiry into the gambling sector. His work has been primarily focused on reviewing the scope of application of existing regulations. While Isgren’s efforts have been described as competent within this limited mandate, industry stakeholders believe that his proposal will not sufficiently address the broader issues affecting channelisation and market integrity.

The inquiry, scheduled to present recommendations in September, is intended to propose measures to improve channelisation rates. However, BOS and other key stakeholders argue that a more comprehensive approach is required—one that goes beyond isolated regulatory adjustments and considers structural and strategic measures to strengthen the licensed market.

BOS proposal for a new inquiry

In response, BOS has drafted a formal letter to the Ministry of Finance, suggesting the creation of a new, broader parliamentary inquiry. The association advocates for an approach that combines parliamentary oversight with input from an expert reference group, ensuring that any recommendations are both thorough and actionable.

The letter states:

*”We propose that the Government appoint a new inquiry, preferably a broad parliamentary inquiry with an accompanying expert reference group, which will be tasked with investigating measures to strengthen channelisation in the gambling market, both promotional and repressive.

The inquiry is expected to continue past next year’s parliamentary elections; however, with active parliamentary involvement, its recommendations are likely to remain valid regardless of the election results.

Marcus Isgren appears to have performed well within the narrow scope of his current assignment. He could potentially serve as one of several appropriate candidates for leading a more comprehensive gambling industry investigation.

BOS and our member companies are at your disposal in the event that the Ministry of Finance wishes to discuss this proposal from us further.”*

This proposal emphasizes a long-term strategy for market regulation, ensuring that improvements to channelisation are resilient and politically sustainable.

Importance of channelisation in the Swedish gambling market

Channelisation is not merely a regulatory metric; it is central to the health and sustainability of the licensed gambling sector. High channelisation rates allow licensed operators to compete effectively, generate tax revenue, and maintain consumer protections. Conversely, low channelisation—particularly in online casinos—creates opportunities for unlicensed operators, which can undermine both market integrity and public trust.

BOS highlights that the gap in online casino channelisation is particularly concerning, as this segment accounts for a substantial share of Sweden’s gambling revenue. Addressing this issue through comprehensive inquiry and policy reform is seen as critical to safeguarding the long-term viability of the regulated market.

Industry perspectives and stakeholder support

Numerous stakeholders within the industry have voiced their backing for BOS’s proposal. Stakeholders argue that a narrowly focused inquiry risks producing recommendations that address only superficial aspects of the problem, rather than tackling the structural challenges contributing to low channelisation.

Gustaf Hoffstedt, Secretary General of BOS, commented:

“The appointment of a broad inquiry tasked with preventing leakage to the unlicensed gambling market would undoubtedly be this Government's most important measure to protect and strengthen the legal, regulated gambling market, before Sweden goes to the polls in September next year.”

Hoffstedt’s statement underscores the urgency of the matter, noting that political timelines and the upcoming parliamentary elections add complexity to the regulatory landscape. A comprehensive inquiry, supported by both Parliament and industry experts, is seen as the most effective way to ensure enduring reforms.

Potential measures to improve channelisation

While the exact recommendations of the proposed broader inquiry remain to be defined, BOS and other industry stakeholders have suggested several potential measures:

• Enhanced regulatory oversight to prevent illegal operators from capturing market share.
• Strengthened consumer education initiatives to guide players towards licensed providers.
• Incentives for operators to maintain compliance and promote responsible gambling.
• Targeted interventions in the online casino sector, where channelisation rates remain lowest.
• Collaboration between government authorities and licensed operators to monitor and respond to market trends.

These measures aim to create a balanced approach, combining enforcement with promotion to ensure that the licensed market thrives while consumer protections remain strong.

The role of parliamentary participation

A key element of BOS’s proposal is the inclusion of parliamentary oversight in the inquiry process. By involving elected representatives, the inquiry’s recommendations are expected to have greater legitimacy and durability, reducing the risk that political changes could undermine regulatory reforms.

Parliamentary participation also ensures that the inquiry considers diverse perspectives, including economic, legal, and social dimensions of gambling regulation. This holistic approach is essential for addressing the complexities of the modern gambling market, particularly in the rapidly evolving digital sector.

International context and lessons

Sweden is not alone in facing challenges related to gambling channelisation. Many jurisdictions have grappled with the balance between regulating licensed operators and curbing unlicensed activity. Successful strategies often involve a combination of regulatory enforcement, industry collaboration, and public awareness campaigns.

By proposing a broader inquiry, BOS aims to align Sweden’s approach with best practices observed internationally, ensuring that licensed operators remain competitive while minimizing leakage to unregulated markets.

Next steps and expectations

The Ministry of Finance is expected to review BOS’s proposal in the coming months. Should the government decide to establish a broader parliamentary inquiry, industry stakeholders anticipate a more comprehensive set of recommendations by late 2025 or early 2026.

For BOS and its member companies, engagement with the Ministry will be crucial to shaping the inquiry’s scope and ensuring that proposed measures are practical, effective, and legally sound.

Conclusion

BOS’s call for a broader gambling industry inquiry highlights the ongoing challenges faced by Sweden’s regulated gambling sector. With online casino channelisation lagging behind other segments and political timelines approaching, stakeholders are urging decisive action to protect the licensed market and enhance regulatory effectiveness.

By advocating for a parliamentary-led, expert-supported inquiry, BOS seeks to ensure that reforms are comprehensive, sustainable, and capable of addressing both promotional and repressive measures. The outcome of this initiative could significantly shape the future of Sweden’s gambling industry, reinforcing the importance of legal and licensed operators while minimizing the risks posed by unregulated activity.

FAQs

What is the role of BOS in Sweden’s gambling industry?
BOS is the Swedish Trade Association for Online Gambling, representing licensed operators and advocating for regulatory reforms and market development.

Why is channelisation important for Sweden’s gambling market?
Channelisation ensures that gambling activity occurs within the licensed market, supporting consumer protection, public revenue, and operator compliance.

What did Spelinspektionen’s report reveal?
The report showed that 15% of online gambling activity occurs outside the regulated market, with online casino channelisation particularly low at 72-82%.

Who is Marcus Isgren?
Marcus Isgren is a government investigator tasked with reviewing the scope of Sweden’s gambling regulations and proposing improvements to channelisation.

Why does BOS want a new inquiry?
BOS believes the current inquiry is too narrow and does not address structural challenges needed to strengthen the licensed gambling sector.

What measures might a broader inquiry recommend?
Potential measures include stronger enforcement against unlicensed operators, consumer education, incentives for compliance, and targeted interventions in online casinos.

How would parliamentary participation help the inquiry?
Parliamentary involvement ensures that recommendations have legitimacy, are politically sustainable, and consider multiple perspectives across economic, legal, and social dimensions.

What is the significance of the upcoming elections?
The parliamentary elections could influence regulatory priorities, making it important for any inquiry recommendations to be durable regardless of election outcomes.

How does Sweden compare internationally in gambling regulation?
Sweden faces similar challenges to other countries balancing licensed and unlicensed operators, with successful strategies often combining enforcement, collaboration, and public awareness.

What are the next steps for BOS and the Ministry of Finance?
The Ministry will review BOS’s proposal, and if approved, a broader inquiry will be established with expert participation, potentially producing recommendations by late 2025 or early 2026.