Part 2: Sweden – SWOT-ing up
Regulatory pressure
Tjärnström went on to warn politicians and
operator to operator to collect their bonuses.
“During the second half of the quarter, the
regulators not to be overzealous in their attempts situation stabilised, primarily regarding customer
to corral the new market, particularly in terms of volumes and number of new customers,” Pontus
advertising, suggesting the somewhat lacklustre Lindwall, president and chief executive at Betsson
first few months would take care of some of the said. “In addition, there are ongoing discussions
issues regarding over-exposure. regarding rules for marketing volumes and
“If this development continues, there will be
less marketing; the market forces will take care
content in Sweden.”
This trend of player switching was confirmed
of that itself,” he added. “It is important to let the by Gaming Innovation Group (GIG), which said
system be. We are only one quarter in.” in its results statement that its “foresight” on
Whether the regulators and politicians are
such player behaviour meant it had adjusted
listening – and whether indeed they take the same its marketing spend on the B2C side. Hence,
lessons from the first few months – is a matter that marketing fell 26% in the first quarter compared
is open to debate. At the end of April, the Swedish with the same period last year.
government said that industry efforts to self
What this means for GIG’s affiliate business
regulate (via the Swedish operators’ association) – and the other super affiliates working in the
were not sufficient and suggested it may look to Swedish market – is as yet hard to ascertain.
“remove aggressive game advertising”.
This is on top of various warnings from the
Catena Media said in its first quarter results that
there had clearly been an impact, and said the
Swedish Gambling Authority (Spelinspektionen) revenues for some of its operators had “dropped
regarding marketing infractions, including the fines dramatically”, although it was positive on what
levelled in mid-May against Betway and this meant from here.
Mandalorian Technologies for bonus violations. This
“For the long term we expect this will prove
squarely addresses what many see as the main beneficial for us,” the company said in its statement.
issue for the Swedish licensed operators – the rules “Since operators will need even more players, there
on one-time bonusing. should be even higher demand for our services.
Additionally, with Swedish legislators considering
The onus on bonus restricting marketing channels for online gambling,
According to Kindred, this rule had “the single our offering will grow even stronger.”
biggest impact” on the market. “The significant
uptake on customer bonuses, especially in Settling-in period
January and February, resulted in bonus More positive noises came from LeoVegas. The
expenditure increasing with £6.6m for the first company said its organic Swedish revenues
quarter compared with the same period last year,” decreased 16% over the period, which it blamed
the company said. “Bonus costs stabilised later on the “short-term effects” of the market opening.
in the quarter and by March were lower than last
Yet, the deposit base rose 23%, suggesting it
year with full year costs expected to be lower was managing the transition, and the company
than for 2018.” said that month-on-month revenues were
Betsson similarly took the opportunity in its
growing. “As is always the case when a market
first quarter results to suggest that Sweden becomes regulated, it will take some time for the
had “negatively impacted” the figures for the industry and customers to adapt, and thereafter
company as a whole. It also cited high bonusing we expect a more stable and predictable
costs, “as well as a difference in the dynamics market,” said Gustaf Hagman, president and
of the customer behaviour”, comments which chief executive.
suggest a high degree of customers moving from
But Hagman had further counsel for politicians
iGaming Business Market Monitor • UK bingo market, Sweden and Germany • June 2019
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