Part 2: Sweden – SWOT-ing up
Part 2: Sweden – SWOT-ing up
I
t could be said that Sweden has become a
Chart 1: Sweden 1Q19 online gambling market shares
SWOT (strengths, weaknesses, opportunities
and threats) analysis in regulated online
gaming market form.
The strengths and the opportunities come
from finally having a market more clearly open
ATG 32.42%
to commercial competition. The weaknesses,
however, come from the revenue side where
Others 50.09%
it is already becoming clear that the various
restrictions imposed by the Swedish authorities
have had an impact on player values. The threat
Svenska Spel 17.48%
is that the regulatory regime – particularly around
advertising – could yet get harsher.
The data to date
Source: Swedish Tax Agency
To start with the opportunities, we already have
data from the Swedish Tax Agency and the
Next up was Svenska Spel, which brought
gambling regulator published in early May, which in SEK577m, meaning that combined the ex-
shows that revenues in the first quarter came in at monopolies controlled half of the total market
SEK3.5bn. (see chart 1).
The earlier data from April also gave an idea
of the task facing the commercial operators Choppy waters
attempting to take on the ex-monopolies Svenska Good news for the ex-monopolies, but not so
Spel and ATG, the former horseracing monopoly. great for the rest of the market. Indeed, the
The latter in particular surprised with the first few months of the opening of the Swedish
strength of its opening few months, achieving market have duly delivered a slew of cautionary
revenues of SEK1.07bn or 32% of the total market statements from operators and suppliers. The
(see table 1). general downbeat air was neatly summed up by
Kindred chief executive Henrik Tjärnström, who
Table 1: 1Q19 online gambling market shares
1Q19 online gambling market shares SEKm
ATG 1,070
Svenska Spel
suggested the opening months had disappointed.
“We were slightly surprised the market appears
to have contracted, albeit we appreciate the
market was more mature than other markets
577 that have re-regulated,” he told investors at the
Others 1,653 Kindred first quarter results presentation. “The
Total 3,300 initial margin pressure was always expected but
Source: Swedish Tax Agency
the absolute size was difficult to forecast.”
iGaming Business Market Monitor • UK bingo market, Sweden and Germany • June 2019
8