The Swedish Gambling Authority (SGA), known locally as Spelinspektionen, has reported a modest but notable increase in net sales within Sweden’s gambling sector for the year 2021. This increase, amounting to 5% growth from 2020’s figures, has propelled the sector beyond pre-pandemic levels, offering a nuanced picture of the industry’s resilience and recovery.
Net Sales Growth Overview
In 2021, Sweden’s gambling sector saw its net sales—defined as players’ bets minus paid out winnings—reach a new high, marking a 5% increase from the SEK 24.7 billion recorded in 2020. This growth not only surpassed the previous year’s performance but also exceeded the net sales figures from 2019, the pre-pandemic benchmark year, which stood at SEK 24.8 billion. This achievement underscores the sector’s robust recovery trajectory amid ongoing public health challenges.
Impact of Covid-19 on Land-Based Gambling
Despite the overall growth, the land-based gambling sector in Sweden continued to face significant challenges in 2021 due to the residual effects of Covid-19 restrictions. The state-owned Casino Cosmopol properties and land-based commercial gaming venues were particularly hard hit. Net sales from these sources remained substantially below pre-pandemic levels, with Casino Cosmopol experiencing a decline of over 71% and land-based commercial gaming dropping by 47%. These figures highlight the uneven recovery across different gambling formats within the country.
Surge in Online Gaming and Betting
A critical driver of the sector’s overall growth in 2021 was the remarkable performance of the commercial online gaming and betting segment. This sector alone contributed more than SEK 16 billion to the year’s net sales, reflecting an almost SEK 1 billion increase from 2020. Notably, both the first and third quarters of 2021 saw net sales surpass the SEK 4 billion mark, a milestone that was achieved only once in 2020 and never before in 2019. This surge underscores the shifting consumer preferences towards online gaming and betting, a trend accelerated by pandemic-related restrictions.
Quarterly Performance Highlights
The quarterly breakdown of net sales offers further insights into the sector’s performance dynamics throughout the year. The first and third quarters of 2021 were particularly strong, each exceeding SEK 4 billion in net sales. The fourth quarter capped off the year on a high note, with net sales across all sectors surpassing SEK 7 billion. This robust end to the year played a significant role in the overall annual growth, highlighting the sector’s capacity to rebound strongly as restrictions eased.
Licensing and Regulatory Landscape
The Swedish Gambling Authority reported that approximately 95 companies held active gambling licenses in December 2021. Of these, 65 companies were certified for betting and/or commercial online gaming. This diverse licensing landscape facilitated a broad range of gaming and betting options for consumers, contributing to the sector’s resilience and adaptability in the face of ongoing challenges.
Self-Exclusion and Responsible Gambling Measures
In line with its commitment to responsible gambling, the SGA noted a rise in the number of individuals utilizing Sweden’s self-exclusion register, Spelpaus.se. By the end of the fourth quarter of 2021, around 70,000 people had suspended themselves from gambling, reflecting a 5% increase from the third quarter. This uptick underscores the growing awareness and utilization of self-exclusion tools among Swedish gamblers, highlighting the importance of responsible gambling measures in the industry’s regulatory framework.
The Swedish gambling sector’s performance in 2021 presents a compelling narrative of resilience and recovery. Despite significant setbacks in the land-based segment due to ongoing public health restrictions, the overall market achieved a modest yet significant growth, driven predominantly by the burgeoning online gaming and betting sector. The detailed quarterly performance, robust licensing framework, and proactive responsible gambling measures collectively paint a picture of a dynamic and adaptable industry poised for continued growth.