iGB Intelligence reports iGB Market Monitor May 2018 | Page 7

Part 1: Introduction – piecing together the Nordic jigsaw Figure 2: Estimated Sweden product splits % GGR Bingo 5% Sports Betting 40% Poker 5% “For example, currently it is not possible to market the brand via Facebook. With a regulated market, it’s possible so more players will be able to join in.” The optimism is shared at Mr Green. “We should remember that the online market is still smaller than the land-based and the transformation from land-based gambling to online will continue for years. This drives the growth for online gambling Casino Games 50% companies,” says Rikard Rinaldo, communications director at Mr Green. Optimism is also on display among investors in the Swedish gaming market, as is evidenced by the listed status of the likes of Kindred, Betsson and Mr Green, as well as companies further down the chain such as Gaming Innovation Group. Source: Market Monitor estimates One of the founding investors there is Optimizer Invest, which is also a large investor What we can’t see, of course, is the splits in Catena Media. New chief executive Petter from the likes of bet365 and Betfair, which are Moldenius is positive on the prospects for likely to be heavily skewed towards sports. the Swedish market once it regulates and the Conservatively, we would suggest the split for opportunities it will bring. He says the market as sports over casino, games, bingo and poker a whole is benefiting from the “ripple effect” of would be 40/60. Breaking down casino and more than 20 years of investment and innovation. games from bingo and poker would be pure “The know-how, the experience has built guesswork but it would be a fair assumption up over time,” he says. “Plus, they have strong that casino and games was the vast majority support from the financial industry. You of that slice. Our product splits are therefore have both sides of the coin. And that strong illustrated in Figure 2. momentum will continue for the foreseeable As for the curren t online market, for 2016 future. The regulated market will only aid that.” Lotteriinspektionen suggested the regulated online market (including Svenska Spel, the Channel crossing horserace betting monopoly ATG and the Key to the future growth rate will be the success Folkspel lottery) was worth SEK3.3bn. or otherwise of the channelisation efforts – the government hopes to persuade the vast A new dawn majority of operators to consider life inside the As with the UK, the market will likely be regulated tent rather than continue with what propelled by the new marketing opportunities. will after January next year very much be black “In a non-regulated environment, marketing market operations in Sweden. channels are limited compared with a regulated Research undertaken for this report into the market,” says Tsachi Maimon, chief executive of current array of Swedish- and Nordic-facing Aspire Global, which runs its own proprietary brands – sourced from Nordic-facing affiliates – brands such as Karamba and Mr Play, as well as would suggest that while the conversion at the a number of white labels aimed at the Swedish top end of the market will be total, further down gaming market. the long-ish tail there can be less certainty. iGaming Business Market Monitor • The Nordics • May 2018 4