Economy Boosting Benefits of Regulated Gambling

While most of the panic surrounding the pandemic has subsided its impact on the global economy is still a hot topic. Whether you are looking at a small family managing a budget, a multi-billionaire like Ronald Perelman losing half his net worth, or the challenges of reinvigorating a local economy the financial challenges are being felt across the board.

A saving grace for many countries has been the regulation and licencing of online gambling. The licencing fees and income gained from the Gross Gaming Revenue (GGR) of their players has been a boon which has allowed the ongoing funding of essential services as well as charities and sporting organisations which would most likely have needed to be cut due to lack of funding. What has been amazing to see is how this has been accomplished while also protecting players.

Gambling Operators Post Billions in Revenue

In a recent report, the Swedish Gaming Inspectorate reported that licenced gambling operators reported Q2 2020 Gross Gaming Revenues of SEK 5.9 billion.

This top-line revenue was split as follows:

Commercial online gambling and betting - SEK 3.6 billion
State lottery and slot machines - SEK 1.22 billion
Public benefit: national lotteries - SEK 950 million
Public benefit: hall bingo - SEK 38 million
Land-based gambling - SEK 33 million

While these figures do show a 4% decline when compared to the revenue figures for Q2 2019 it is heartening to note that Swedish self-exclusion, due to at-risk behaviours, are down by 4.1%!

Another victory for the Gaming Authority is the reported channelling percentage. The report postulates that in addition to the money spent at online casinos an additional SEK 620 million was spent at unlicensed international operators.

If these figures are accurate then Sweden has successfully channelled nearly 90% of its gambling activities into its licenced operators.

Safe Players and Stuffed Coffers

While the exact agreements between the various licence holders is not public record a recent industry report noted that the listed GGR figure of SEK 5.9 billion could mean an income for the country of up to SEK 1.8 billion.

Given that this revenue comes off the heels of a crippling pandemic and with an increase in player protection it is safe to say that Sweden is a shining example of how to broadcast safe gambling messaging, manage licence holders and protect player interests.