Increase in Revenue for Swedish Casino Games in Q3 despite Deposit Cap

Online casino and sports betting revenue increased by 2.1% quarter-on-quarter and 5.8% year-on-year, reaching SEK3.69bn. Despite the introduction of a SEK5000 deposit cap on online casino games, the revenue growth continued. The measure faced criticism from groups such as operator association Branscheforenigen för Onlinespel (BOS) and the International Betting Integrity Association (IBIA). The Swedish government has announced its intention to extend the deposit cap until June 2021 and has opened a consultation on the matter. Svenska Spel’s state lottery and monopoly along with the land-based machine gaming monopoly generated SEK1.47bn, showing a 14.0% increase from the previous quarter and a 7.7% increase from 2019. Svenska Spel also earned SEK1.18bn from lotteries, SEK177m from its Vegas line of gaming machines, SEK490m from its Sport and Casino division, and SEK72m from other sources. The Casino Cosmopol land-based venues, however, did not generate any revenue as they remained closed throughout the quarter. In Q3, Sweden did not have any revenue from land-based casinos as Casino Cosmopol is the sole operator of such venues in the country. Non-profit lottery revenue decreased by 17.5% from its record high in the second quarter of 2020 but still showed a 5.4% year-on-year increase. Bingo revenue grew by 23.7% to SEK47m, and restaurant casino revenue increased by 32.4% to SEK45m compared to Q2. However, these figures were still the second-lowest recorded since the start of 2019, with bingo revenue down by 20.3% year-on-year and restaurant casino revenue down by 24.7%. The regulator noted that the size of the unregulated market could not be accurately measured, but estimates from H2 Gambling Capital suggest it falls between SEK627m and SEK740m. A recent survey commissioned by Spelinspektionen revealed that only 5% of Swedes know how to check if an operator is licensed. At the end of the quarter, over 56,000 people had excluded themselves from gambling using the self-exclusion tool, Spelpaus, showing a 7% increase from the end of Q2. By mid-November, the number of people who had excluded themselves had risen to just under 58,000. Spelinspektionen also found that 43% of respondents were unaware of Spelpaus, leading to a new awareness campaign for the tool. Currently, there are 100 licensed gambling operators in Sweden, including 72 with online gaming licenses.