Sweden’s National Audit Office, Riksrevisionen, has initiated an audit of the Swedish Gambling Authority, Spelinspektionen (SGA), confirming its intentions that we reported on in August of this year. This investigation aims to assess the effectiveness of SGA’s oversight of the gambling market, especially in the context of the market’s re-regulation in 2019. The findings are expected to be released in September 2024.

Riksrevisionen is scrutinizing how well Spelinspektionen has adapted to the re-regulated gambling market. The audit’s focus is on whether SGA is fulfilling its duty to supervise the regulated market, which was revamped to enhance channelisation—the process of directing gambling activities to licensed operators.

This audit announcement follows recent data indicating a significant rise in traffic to unlicensed gambling websites since 2019. Statistics from operator ATG reveal that the channelisation rate for regulated online gambling hovered between 70% and 82% in the third quarter.

Further, Riksrevisionen has raised concerns about the gambling market’s economic impact, suggesting it might be detrimental. The authority highlighted that while the gambling sector generates SEK 6 billion in taxes, the societal cost of problem gambling is estimated at SEK 9 billion.

Riksrevisionen’s audit will also evaluate if the new regulatory system, managed by Spelinspektionen, is effectively controlling the market and safeguarding consumers. The statement from Riksrevisionen emphasizes the high expectations placed on SGA’s supervision in the re-regulated environment. It also notes the increase in the number of market participants, with Spelinspektionen now overseeing around 600 license and permit holders. The novelty of the legislation and the resulting lack of established practices further complicate SGA’s supervisory role.