LeoVegas CCO: Tackling Scandinavia as a Bloc Ignores Critical Market Differences

A Warning Against a One-Size-Fits-All Approach

Gethin Evans, Chief Commercial Officer at LeoVegas Group, has cautioned that treating the Scandinavian region as a single, homogeneous gambling market is a strategic misstep. Speaking ahead of his panel appearance at the SBC Summit in Lisbon, Evans argued that each Nordic country operates under distinct regulatory and structural conditions that demand tailored operator strategies.

Sweden’s Bonus Ban and Tax Hike Drive Players Offshore

When asked which single regulatory measure has most reshaped consumer behaviour in Sweden, Evans pointed to the prohibition on retention bonuses. He explained that the one-time welcome-bonus rule prevents licensed operators from rewarding loyal players over time, inadvertently making unlicensed offshore competitors – which face no such restrictions – more attractive, especially to high-value customers. This effect was magnified by the July 2024 increase in gambling tax to 22% of gross gaming revenue, which widened the perceived value gap between regulated and unregulated offerings.

Channelisation and Player Trust in Restrictive Markets

Evans noted that in markets where bonus incentives are tightly limited, player acquisition now hinges on trust, brand reputation, responsible gambling support, and a fast, simple user experience. LeoVegas has accelerated its focus on those areas with the May launch of its proprietary sportsbook across all four of its brands. He emphasised that the fundamental motivations for gambling – entertainment and the thrill of winning – remain universal, but regulatory differences create distinct player behaviours: Danish players behave similarly to other mature European markets, while Swedish players respond differently due to the bonus restrictions.

Market-by-Market Reality: Denmark, Sweden, Norway, Finland

Evans stressed that a nuanced strategy is essential because the licensing frameworks vary drastically. Denmark operates a mature, stable licensing model with healthy channelisation but nuanced promotional needs. Sweden is a portfolio-led market without retention bonusing. Norway’s monopoly model continues to hamper channelisation despite enforcement efforts. Meanwhile, Finland is in the midst of a historic transition toward a competitive licensing regime expected in 2027, notably without affiliate involvement.

Solutions to Improve Channelisation

To raise channelisation rates, Evans recommended structural changes tailored to each country. For Norway, the most meaningful move would be the introduction of an open licensing model that allows suitable private operators to compete under a clear regulatory framework. For Sweden, the priority is improving the licensed market’s competitiveness, possibly by reconsidering the ban on retention bonuses and allowing moderate, controlled loyalty incentives while ensuring taxation does not widen the value gap. Denmark should focus on preserving its well-functioning licensing system by maintaining proportionate marketing rules and continuing effective enforcement against unlicensed operators targeting Danish consumers.

Collaboration Through Data

Evans called for proactive, data-driven collaboration between operators and regulators. He argued that the industry holds deep, real-time insights into player behaviour and market trends. By securely sharing anonymised empirical data, operators can help inform evidence-based policymaking that protects vulnerable consumers without pushing the broader player base toward the unregulated market.

Looking ahead to the SBC Summit in Lisbon, Evans said he is most excited about exchanging insights with regulated European peers navigating similar complexities. He noted that the most valuable takeaways often come from conversations with smart operators who are driving sustainable growth and adapting daily.