Part 4: A look ahead
Part 4: A look ahead
Several factors will
dictate the success
of the new regulatory
regime including the
degree to which it
is able to limit the
remaining black market
T
he question now is how
successful will the newly
regulated Swedish market
be? The likely answer, despite the
issues around Svenska Spel and
bonusing, is very. We only have
to look to Denmark’s experience
post regulation for an indication of
the potential growth that may lie
ahead. As discussed in our previous
report on Denmark, that country’s
regulated gaming market enjoyed
compound growth of 20% a year in
the first six years after regulation.
“I strongly believe that we
will see similar growth trends in
Sweden as we saw when Denmark
introduced its new regulated
market six years ago,” says Funch
from EveryMatrix. “I heard that
Lotteriinspektionen received 22
licence applications on the first day,
which is not surprising given the
importance of the Swedish market
to many operators. When the new
law goes into force next year we
will without a doubt see increased
marketing activity and spending.”
Admittedly, there are caveats.
The pale grey nature of the Swedish
market as discussed means that
there might not be quite the
level of pent-up demand that has
been the case in other regulating
jurisdictions. Affiliate marketing in
particular has been a strong driver
of current growth.
Yet, the freedom to advertise
on TV and via mainstream social
media channels will have the
effect of pushing regulated
gaming more into the spotlight
more than it was previously.
“I think the regulation will benefit
the industry as a whole,” says
Lindström from Redeye.
“It will also lead to a growth
within the whole value chain as
it will lead to new products and
innovation. I am thinking of platform
providers, payment-solution, BI-
systems, affiliation and more.”
The Swedish market’s well-
earned reputation for innovation
will also play a part, he adds. “It will
absolutely continue and maybe at
an increased pace,” he says. “New
rules will lead to product innovation;
I think there will be an increased
focus on the product and the
customer experience. The one bonus
rule might lead to other reward
systems through gamification or a
different type of side game; it will be
interesting to see.”
New market – old names
Still, we shouldn’t expect too many
new names to be entering the
Scandinavian gaming brand lexicon.
For Lindström the “old” names
will dominate – and in lieu of new
Sweden: The transition to r egulation in one of Europe’s most advanced digital markets
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