January 1, 2019, marked a significant turning point for online gambling in Sweden, but the operators AB Trav och Galopp (ATG) and Svenska Spel had already established their online presence long before this date. Svenska Spel, the state-owned lottery, monopolized several gambling sectors, operating not only lotteries but also the land-based Casino Cosmopol, the Vegas slot arcades, and the online Sport & Casino brand. Meanwhile, ATG focused solely on horse racing, maintaining a monopoly in that area.
Despite the formal introduction of competition in 2019, ATG CEO Hasse Lord Skarplöth argues that the landscape didn't change dramatically. “From our side, we got more competition formally from 1 January 2019. But in reality it was not a big change because we had 20 competitors already,” he explained.
Both Skarplöth and Svenska Spel CEO Patrik Hofbauer acknowledge that the re-regulation initiated a crucial issue: a decline in public trust regarding the gambling industry. Hofbauer noted that, “Before we went into the re-regulation, in the second half of 2018 and the first half of 2019, there was a massive increase in advertising from gaming companies… aggressive advertising because everybody tries to protect market share or gain market share.” This surge in advertising focused heavily on online casinos and attractive offers like bonuses and quick payouts, ultimately tarnishing the sector’s reputation. Both executives observe that public sentiment towards advertising in this space has since been overwhelmingly negative.
In response to the erosion of trust, ATG and Svenska Spel introduced a new initiative to promote transparency within the gambling sector, aiming to rebuild confidence. They committed to sharing four key responsible gambling statistics twice a year to enhance transparency. Skarplöth expressed, “All in all, I think transparency and information are the keys to understanding trust.”
Commercial operator Kindred also joined this initiative, collaborating with the two former monopolies to provide more comprehensive insights into gambling behaviors. Each of these three operators will report the percentage of customers contacted after identifying harmful gambling behaviors, how much those customers reduced their gambling on average, and the proportion of customers who chose to self-exclude after an interaction.
Reflecting on the initiative's potential impact, Skarplöth expressed hope that it could sway public opinion, stating, “My belief is that we could change the opinion, otherwise we shouldn’t do this.” However, he and Hofbauer are aware that transforming perceptions will be challenging. Hofbauer remarked, “It should be seen as a first step in a long-term effort to make the gambling industry more transparent. Remember, the primary target group was our stakeholders.”
Although Hofbauer stressed that improving the industry's image is essential for altering public perception, progress will take time. “This is not a sprint; it’s more like a marathon,” he said. The challenge lies in helping the public understand the data and believe that the operators are genuinely working toward transparency.
Skarplöth emphasized the importance of engaging those interested in the statistics, saying, “The most important thing is that those who take an interest in them get them… that also sends a message.”
The KPIs selected for this initiative are already collected by licensed operators and reported to the Swedish regulator, Spelinspektionen. Hofbauer mentioned, “The starting point was really that we looked for data that all gambling companies with a license were obliged to report.” He noted that other gaming companies have shown interest in joining this initiative, suggesting that a collective effort could strengthen the movement. “The more colleagues in the industry that get involved the better this will be. And remember, we used existing data. Nobody has to reinvent the wheel,” he concluded.
