Ahead of a nationwide reregulation in January 2019, Lotteriinspektionen has warned that Swedish licensed firms are losing out to unlicensed competitors.
The national regulator observed that though GGR for the first three quarters of this year rose 1.2 percent to $1.8bn, licence holders saw revenue drop 2.4 percent over Q318.
The decline, which left regulated firms with $1.3bn, was in stark contrast to the 12.4 percent increase in revenue reported by unlicensed firms, who posted a collective GGR of $498m.
The results follow an ongoing increase in the popularity of online gaming, which saw revenue for the three quarters rise 12.9 percent, while land-based gaming dropped 8.4 percent.
The decline in licensee revenue could be reflected by the established firms maintaining an underperforming land-based presence, such as Sweden’s largest gaming operator Svenska Spel, which saw land-base gaming revenue fall nine percent for the period.
The new regulations, which will see the official legalisation of online gaming, subject to an 18 percent tax on GGR, is designed to redress the balance in the licensees favour.
With 70 companies expected to submit applications, the regulation will aim to reduce the 27 percent market share currently enjoyed by unlicensed operators.