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Market Monitor Sweden : getting tougher all the time
“ In turn , this means that it is all the more important for licensed operators to be able to offer attractive products and incentives ( such as bonuses ) in the market . This aspect is something that the government may not have fully realised yet .”
The issue of the attractiveness of offshore or unlicensed offerings was highlighted earlier this year by the evidence from a survey conducted by affiliate BonusFinder of the popularity of key Swedish consumer search terms such as ‘ casinos without Spelpaus ’ and ‘ unlicensed casinos ’ ( see Chart 1 ).
Fintan Costello , chief executive of BonusFinder , says the increasing propensity for Swedish consumers to use such search terms was “ super clear ”. He adds : “ We see users doing these searches as the most vulnerable .”
Hoffstedt says this data shows that punters are abandoning the licensed market at an increasing speed , some innocently but others with clearly worrying motives regarding self-exclusion .
“ We have seen examples of search words such as ‘ best bonuses ’, and in those cases I believe that many punters are not aware that unlicensed operators will always offer better bonuses , since bonuses are very limited within the licensing system ,” he adds .
“ These punters probably abandon the licensing system
Chart 1 : Black market searches
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Unlicensed casinos
Casinos without Spelpaus Source : BonusFinder
without knowing that . And in the worst cases people , probably in search of help with their addiction , search for ‘ Spelpaus ’ and receive Google suggestions to gamble with unlicensed operators that don ’ t comply with Spelpaus .”
Rotter says that evidence of searches taking place for operators without a licence inevitably makes life harder for licensed operators to compete . “ Players expect and are used to an attractive offer and will find alternatives which do not restrict them the same way the Swedish regulations currently do ,” he says .
CHANGING DYNAMICS
Clive Hawkswood , chief executive of trade body Responsible Affiliates in Gambling ( RAiG ), says that both governments and the sector are still in an ongoing process of
Casinos without a Swedish licence Combined
learning about the dynamics of regulated markets versus grey or black markets .
“ What we do know is that online consumers have relatively little brand loyalty and a mentality of seeking out the best value and choice ,” he says . “ It follows that the main drivers for successful channelisation are being able to offer customers the products they want at a competitive price . When regulations and / or tax reduce the ability of licensed operators to do that , then the attraction of unlicensed operators increases and channelisation becomes harder .”
He adds that the problem often arises as different stakeholders make different interpretations of the available data . “ However , there should surely be a common interest in maximising channelisation ,” he says . iGB Market Monitor