Scandinavia is becoming one of the leading online gambling markets. The northern edge of the content is home to interesting markets. The region presents highly regulated and wealthy markets like Sweden and Denmark.
Although some of these markets are state monopolies, the region is still one of high interest among prospective investors in the online casino sector. Factors driving online casino growth in the region’s markets include notable levels of disposable income, high rates of internet penetration, and locals’ love for gambling as a viable form of entertainment.
The number of online casinos in Scandinavia has grown significantly over the past few years. Today, players in the region have access to many online casino sites. For instance, if you are looking for a new Norwegian online casino, you are sure to find a myriad of options with a quick Google search. The digitization of casino gaming has made it convenient for more people to participate. As a result, there is high demand for online casino games in the region.
This article will examine how Scandinavia’s online casinos are booming and how locals are embracing new opportunities in the new market. Read on to find out more.
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The Nordic Model for Online Gambling
Until recently, most Nordic countries had stringent state-steered gambling and betting monopolies. Norway still maintains strict regulations on slot machines, lotteries, and sports betting. However, that notwithstanding, private operators have begun springing up in the market as state control gradually relaxes.
The Danish ended their state monopoly in 2018, opening up the gambling sector to private operators for the first time. However, operators must obtain government-issued gambling licenses to operate in the jurisdiction.
Today, there is more latitude for Scandivanian companies to open up online gambling operations. Even as governments ease regulations to accommodate online gambling, operators must adhere to stringent regulations and licensing rules.
Factors Driving the Growth of Online Casinos in Scandinavia
To better understand the Scandinavian online gambling market, it is important that we examine the factors fueling the sector. What is driving the change? Well, discussed below are the drivers of the fast-growing Scandinavian online gambling market.
1. Scandivanians are Big on Gambling
Scandinavian countries have large demographics of gamblers, with Iceland reporting that 76% and Finland 80% of their population gambled in 2021. These numbers are attributed to the fact that Scandinavians have among the highest disposable incomes, strong and state economies, and steady jobs and are ranked among the happiest people in the world.
2. The Launch of New Casinos
Another reason for the growing popularity of online gambling in the region is the launch of new casinos in Scandinavia. As more operators set up operations in the new market, competition is stiffening, forcing operators to offer attractive bonuses and promotions to attract and retain customers.
The competitiveness posed by the growing number of online casino operators in the region compels operators to enhance customer service delivery, making the market very popular among players looking for freebies and superior services.
3. A Wide Range of Gambling Options
As the number of online casinos grows, Scandinavians have access to various gambling options. Every online casino is unique and offers different games from different game developers. Popular online casino games among Scandivanians include slots, blackjack, roulette, poker, and baccarat.
Scandinavian players have access to games from Microgaming, IGT, Playtech, Evolution Gaming, Big Time Gaming, and Elk Studios, among other developers. This presents a market where each player enjoys the perks of options and diversity.
4. Gambling-Friendly Laws and Regulations
In most countries worldwide, gambling is strictly regulated by the state. However, some countries are more strict than others. Historically, Scandinavian countries had strict gambling regulations, with only a handful of government-led gambling and betting operations. These countries are gradually easing regulation by eliminating government monopolies over gambling.
Denmark ended its government monopoly in 2010. Sweden opened up its online gambling market to private operators in 2018. Finland has been on the frontline supporting gaming app creator startups, including Finnish Casinos.
5. Banking Support
The Scandinavian baking sector remains open and supportive of the online casino industry. Most e-wallet companies and banks support payments to and withdrawals from online casinos. Other options include debit/credit cards and crypto.
In countries like Denmark, Sweden, Norway, and Finland, you can start playing at the online casino of your choice with as little as 10€ in your e-wallet.
6. Strong Mobile Teledensity and Internet Penetration
With nearly 100% mobile internet penetration, Scandinavians have grown accustomed to mobile applications. This makes it easier for online casino operators to reach players through web and mobile apps.
Mobile online gaming is exciting, fun, and interactive while also being relatively inexpensive and, thus, easier to indulge in.
7. Smart Marketing by Operators
Online casinos are also growing popular in the region due to smart marketing strategies used by operators. Private operators setting up online casino operations in the new market are willing to pay top dollar to sponsor brand ambassadors.
Casino brands are now working with big names like Jonny Lodden, Zlatan Ibrahimovic, and Ola Amundsgard to bring online gaming to the homes of millions of potential customers. Such use of national and international heroes has improved the profile of many online casino brands, giving them a legitimacy that may still be lacking in other jurisdictions.
What the Numbers Say About the Nordic Love for Casinos
Scandinavians’ love for casinos is unmatched despite a history of state restriction. In Finland, for instance, 80% of the population reported gambling in 2021. The same situation is mirrored in Sweden, where locals take to online gambling sites in droves. Statistics published by the Swedish Gaming Inspectorate show that all forms of gambling in Sweden surged by 7% in 2021.
Other Nordic states are showing the same pattern. The Norwegian online gambling market has grown by about 62% in the past few years. In 2021, 59% of Danish gambling spending came from online gambling sites, with 28% growth in the online casino sector.
The growth of the Scandinavian online gambling market is largely attributed to digitization. Considering that pretty much every teen and adult owns a smartphone with a stable connection to the internet, it is not surprising that online gaming and gambling are gaining traction.
