Stricter Licensing Rules Expected for Swedish Gambling

The Swedish government is preparing to make significant changes to its gambling laws in an effort to tighten regulations around unlicensed gambling operators. Currently, some online gambling platforms without a Swedish license can still attract Swedish consumers by avoiding the use of the Swedish language and currency. This loophole has long been criticized by industry stakeholders and regulatory authorities, who argue that it undermines the integrity of Sweden’s regulated gambling market.

After years of lobbying from the Swedish Trade Association for Online Gambling (BOS) and various industry players, the government has initiated a formal investigation into the issue. The objective is to redefine the criteria that determine whether an unlicensed operator is actively targeting Swedish consumers and to ensure that all gambling activities accessible within Sweden are subject to national oversight.

The Background: Sweden’s 2019 Gambling Act and Its Unintended Consequences

Sweden reformed its gambling market on January 1, 2019, by introducing the Gambling Act (SFS 2018:1138). This legislation marked a major shift from the previous state-controlled monopoly to a licensing model that allowed private operators to enter the market. The main goals of this re-regulation were to:

• Strengthen consumer protection
• Enhance state control over gambling activities
• Reduce the influence of unregulated gambling operators
• Increase tax revenue from gambling activities

However, despite these reforms, the Gambling Act contained a significant flaw: it only prohibited unlicensed operators from specifically targeting Swedish consumers through direct means, such as using the Swedish language or currency. As a result, many offshore gambling companies continued accepting Swedish players simply by offering their services in English and using foreign currencies like euros.

This loophole created an uneven playing field where licensed operators had to adhere to stringent regulations and pay Swedish gambling taxes, while unlicensed operators were able to offer more attractive incentives without any local restrictions or obligations. This led to a surge in offshore gambling activity, undermining both the regulated market and consumer protection efforts.

BOS Advocates for Stronger Regulations

The Swedish Trade Association for Online Gambling (BOS) has been vocal about the need for stricter regulations since the re-regulation of the gambling market in 2019. According to BOS Secretary General Gustaf Hoffstedt, the loophole has allowed unlicensed operators to continue engaging with Swedish players, effectively bypassing regulatory requirements.

In a recent statement, Hoffstedt reiterated BOS’s stance, stating that the association had “advocated an amendment to the Gambling Act in this regard ever since the re-regulation of the Swedish gambling market in 2019.” He further emphasized that “many unlicensed gambling companies were able to continue to accept Swedish gambling customers, as long as they avoided the Swedish language and the use of Swedish currency.”

Recognizing the urgency of the situation, BOS sent a letter to the government earlier this year urging immediate action. The government has now responded by appointing a special investigator to assess the problem and propose necessary amendments to the Gambling Act.

Government Action: A Step Toward Closing the Loophole

The Swedish government has assigned Marcus Isgren, Chairman and Head of the Swedish Board of Consumer Complaints, as the official state investigator for this review. Isgren has been given a deadline of September 17, 2025, to present his findings and recommendations on how to amend the law.

The proposed changes aim to shift the focus from language and currency-based criteria to a more inclusive “participant perspective.” Under this approach, any online gambling activity accessible to Swedish players—regardless of the service’s language or currency—would require a Swedish license.

This revision would ensure that all gambling companies engaging with Swedish consumers fall under Swedish regulatory jurisdiction, thereby eliminating the loophole that has allowed unlicensed operators to exploit the market.

Regulatory Authorities Back the Proposed Changes

The Swedish Gambling Authority (Spelinspektionen) has strongly supported this initiative. Camilla Rosenberg, Director General of Spelinspektionen, expressed her approval of the government’s decision, stating that “the Swedish Gambling Authority views this announcement very positively.” She further emphasized that Spelinspektionen had previously urged the government to reconsider the application of the Gambling Act in relation to online gambling activities.

Earlier this year, Spelinspektionen published a report detailing the need for an expanded regulatory framework. The report, released on April 30, 2024, highlighted the importance of strengthening cooperation between the Swedish Financial Supervisory Authority and the Gambling Authority to combat illegal gambling activities. The document also reinforced the argument that the existing legislative framework was inadequate in addressing the risks posed by unlicensed operators.

Industry Reactions: A Call for Urgent Action

Many industry stakeholders have expressed frustration over how long it has taken for the government to address this issue. Niels Munk Madsen, Director of Commercial Performance at Betsson Group, voiced his concerns on LinkedIn, stating that “it’s hard to believe it has taken this long to act on something so fundamental.” He further criticized the existing regulatory environment, arguing that licensed operators have faced disproportionate scrutiny while unlicensed operators have continued to operate freely.

Madsen’s concerns highlight the broader sentiment among licensed gambling companies, which have been at a competitive disadvantage due to the regulatory disparity. Licensed operators must comply with strict regulations, pay Swedish taxes, and face substantial fines for non-compliance, while unlicensed operators have been able to attract Swedish customers without any of these constraints.

Looking Ahead: What Changes Are Expected?

With the government’s commitment to reform, several key changes are anticipated:

• Stronger Enforcement: The Swedish Gambling Authority will likely receive greater authority to take action against unlicensed operators.
• Broader Licensing Requirements: Any gambling platform accessible to Swedish consumers may be required to obtain a Swedish license, regardless of the language or currency used.
• Increased Consumer Protection: Enhanced oversight will provide better safeguards for Swedish players, including responsible gambling measures and data security.
• Higher Tax Revenues: By bringing more operators into the licensed system, Sweden could see a rise in gambling-related tax revenues.

Conclusion

The Swedish government’s decision to review and amend the Gambling Act marks a critical step toward restoring the integrity of the country’s regulated gambling market. By closing the loophole that has allowed unlicensed operators to exploit Swedish consumers, authorities aim to create a fairer and safer gambling environment.

With stakeholders across the industry calling for swift action, the coming months will be crucial in determining the future of Sweden’s gambling regulations. If the proposed changes are implemented effectively, they could serve as a model for other countries facing similar regulatory challenges in the online gambling sector.

FAQs

What prompted Sweden to review its gambling laws?
The loophole allowing unlicensed operators to target Swedish consumers without a local license prompted the government’s review.

What changes are expected in Sweden’s gambling regulations?
Authorities plan to require all online gambling accessible to Swedish players to obtain a Swedish license, closing the loophole.

Who is leading the investigation into Sweden’s gambling laws?
Marcus Isgren, Chairman of the Swedish Board of Consumer Complaints, has been appointed as the state investigator.

How has BOS influenced the government’s decision?
BOS has actively lobbied for stricter regulations since 2019, highlighting the loophole’s negative impact.

Why are licensed operators concerned about unlicensed gambling platforms?
Licensed operators face strict regulations and taxes, while unlicensed operators have unfairly attracted Swedish players.

How has Spelinspektionen responded to the government’s decision?
Spelinspektionen strongly supports the move, stating it aligns with their recommendations to expand gambling oversight.

What role does the Swedish Financial Supervisory Authority play in this matter?
The authority collaborates with Spelinspektionen to combat illegal gambling and enhance regulatory enforcement.

Will stricter gambling laws increase tax revenue?
Yes, by bringing more operators into the licensed system, Sweden could collect more gambling-related taxes.

When is the final report on these changes expected?
The government expects the final recommendations to be submitted by September 17, 2025.

How will these changes impact Swedish consumers?
Consumers will benefit from stronger protections, responsible gambling measures, and a safer gambling environment.