Swedish Gambling Act review proposes stricter enforcement

Sweden is once again reassessing the foundations of its gambling regulation. A newly released memorandum by Marcus Isgren, who has been tasked with evaluating the Swedish Gambling Act, presents recommendations that could significantly alter how the country regulates both licensed and unlicensed operators. The proposals, which have already been welcomed by the state-owned operator Svenska Spel, are designed to strengthen consumer protection, safeguard the integrity of the regulated market, and reduce opportunities for illegal gambling activity.

Background to the review

The Swedish Gambling Act, which came into force in 2019, was intended to establish a balance between creating a competitive regulated market and preventing unlicensed operators from gaining access to Swedish consumers. However, questions over its effectiveness have persisted.

In early 2025, Marcus Isgren was appointed to lead a review of the Act. His objective was to identify areas where the law required clarification or reinforcement. After months of examination, consultation, and legal analysis, Isgren has now submitted his findings to Sweden’s Ministry of Finance. The recommendations target both regulatory loopholes and enforcement challenges that have become increasingly visible in recent years.

Shifting the directional criterion to a participant criterion

One of the most significant proposed changes concerns the so-called “directional criterion.” Under the existing framework, enforcement measures by Spelinspektionen—the Swedish Gambling Authority—typically focus on whether an operator can be shown to be targeting Swedish players. Evidence such as Swedish-language websites, local advertising, or marketing specifically aimed at Sweden has been used to justify enforcement action.

Isgren proposes to replace this test with a broader “participant criterion.” This would shift the focus away from whether a gambling platform actively seeks Swedish players to whether Swedish consumers are simply able to access and participate on the platform.

If adopted, the amendment would compel operators to take proactive measures to prevent Swedish players from engaging with unlicensed gambling services. This approach would also make it more difficult for operators to argue that they are not targeting Sweden simply because they avoid overt marketing in the country.

Svenska Spel’s Chief Executive Officer Anna Johnson welcomed this recommendation, stating:
“We have long been concerned that the regulations surrounding illegal gambling need to be tightened. This is about improved protection for consumers, but also about safeguarding trust in the entire Swedish gambling market.”

Expanded responsibility for financial and administrative service providers

A second major recommendation concerns the financial and administrative ecosystem that supports online gambling. Under the current Act, promotion of illegal gambling is prohibited, but service providers such as payment processors, fintech companies, or back-office support businesses are not explicitly included within the scope of liability.

The memorandum recommends expanding liability to these actors. It suggests that companies providing payment solutions or administrative services should assume responsibility for verifying whether the gambling platforms they work with are licensed in Sweden.

According to the proposal, service providers would need to operate under the presumption that Swedish consumers are among the users of the platform. Therefore, unless the operator holds a Swedish licence, providing services such as facilitating deposits and withdrawals would constitute a breach of the Gambling Act.

The inclusion of financial intermediaries represents a significant policy shift. It signals an intention to disrupt the broader networks that allow unlicensed operators to sustain business in Sweden.

Strengthening of Spelpaus self-exclusion

The review also places attention on Spelpaus, Sweden’s national self-exclusion system. Since its launch, Spelpaus has been viewed internationally as a pioneering consumer protection tool, allowing individuals to block themselves from all licensed gambling platforms with a single registration.

However, regulators have identified weaknesses, particularly concerning identification and enforcement. Some consumers have reportedly managed to circumvent restrictions, while certain operators have been accused of failing to integrate Spelpaus effectively.

The proposed amendments would impose stricter identification requirements on operators. This would ensure that any person enrolled in Spelpaus could not participate in gambling activities, closing potential gaps in enforcement.

Concerns over market channelisation

The effectiveness of Sweden’s gambling regulation is often measured through the channelisation rate—the proportion of gambling activity that takes place within the licensed and regulated market.

In September 2025, Spelinspektionen reported that channelisation had fallen to 85%, below the government’s stated target of 90%. The decline raised concerns that unlicensed operators were gaining ground despite enforcement measures.

If the proposed reforms are enacted, they are scheduled to take effect on 1 January 2027. Advocates of the changes argue that they could play a crucial role in driving channelisation back above 90% and reinforcing the regulated sector’s sustainability.

Johnson of Svenska Spel underlined the importance of further action:
“It is absolutely necessary to continue with more measures to combat illegal gambling.”

Industry support and political implications

The proposals have not only gained support from Svenska Spel but also from the Swedish online gambling trade association, BOS. The association represents many licensed operators and has consistently called for fair but firm regulation to ensure a level playing field.

BOS Secretary General Gustaf Hoffstedt welcomed the recommendations, saying:
“I foresee the Government shortly submitting a bill to the Riksdag in accordance with the investigation's proposal. Good job Mr. Investigator and with the hope of equally good job from the government and the Riksdag to now proceed with legislation on the matter. Unlicensed gambling in Sweden must be smoked out.”

This public backing from both a state-owned operator and an industry trade body suggests that the government will face relatively little resistance if it decides to move ahead with legislation.

The Ministry of Finance is now expected to evaluate the memorandum, consult stakeholders, and prepare a draft bill for parliamentary consideration. While political debates are inevitable, the broad support from major stakeholders is likely to ease the process.

Broader implications for gambling regulation

Sweden’s approach is being watched closely by other European jurisdictions. Several countries are grappling with how to control unlicensed operators, particularly in an era where cross-border online services can reach consumers with relative ease.

The shift toward a participant criterion and the imposition of obligations on financial intermediaries could inspire similar regulatory models elsewhere. By widening the circle of accountability, Sweden may set a precedent that strengthens enforcement mechanisms across Europe.

At the same time, the government will need to balance consumer protection with market competitiveness. Licensed operators have previously cautioned that overly restrictive measures could make the regulated market less attractive, driving players toward unlicensed alternatives. The effectiveness of the reforms will therefore depend on careful implementation and continued dialogue with industry stakeholders.

Timeline and next steps

If the government accepts the proposals, a bill could be introduced to the Riksdag in the coming months. Following legislative debate and approval, the changes are scheduled to take effect on 1 January 2027.

This timeline allows for a period of transition during which operators, service providers, and regulators can adapt their compliance systems. For financial and administrative service providers, in particular, the adjustment may require significant investment in compliance infrastructure.

Until then, the Swedish gambling market will continue to operate under the current Act. Nevertheless, the direction of reform is clear: greater responsibility for operators, service providers, and regulators alike in tackling unlicensed gambling.

Conclusion

The review of the Swedish Gambling Act marks a decisive moment for the country’s regulatory framework. By shifting from the directional criterion to the broader participant criterion, extending liability to financial and administrative service providers, and strengthening consumer protection tools such as Spelpaus, the proposals set out by Marcus Isgren seek to close loopholes that have allowed unlicensed operators to persist in the market.

Support from both Svenska Spel and BOS suggests that there is broad consensus on the need for stronger enforcement and better safeguards. If enacted, the reforms could help restore the channelisation rate to above 90%, reinforce trust in the regulated sector, and serve as a model for other jurisdictions grappling with similar challenges.

Ultimately, the success of these reforms will depend not only on legislative approval but also on effective implementation. For Sweden, the opportunity lies in demonstrating that a robust regulatory system can both protect consumers and ensure a sustainable, competitive gambling market.

FAQs

What is the Swedish Gambling Act?
The Swedish Gambling Act is the primary legislation regulating gambling in Sweden, introduced in 2019 to create a licensed market and protect consumers.

Why is the Act under review?
The Act is being reviewed to address challenges with unlicensed operators, declining channelisation, and loopholes in enforcement mechanisms.

Who led the review of the Gambling Act?
The review was led by Marcus Isgren, who was appointed in early 2025 to identify areas where the Act could be strengthened.

What is the directional criterion?
The directional criterion is the current legal test that determines whether an operator is targeting Sweden, based on factors such as language and marketing.

What is the participant criterion?
The participant criterion is a proposed legal test that would expand enforcement to any gambling platform accessible to Swedish players, regardless of marketing.

How would financial service providers be affected?
Payment providers and administrative services would be required to ensure they only support licensed operators, assuming Swedish consumers may be involved.

What is Spelpaus?
Spelpaus is Sweden’s national self-exclusion system, allowing individuals to block themselves from all licensed gambling operators with one registration.

Why is channelisation important?
Channelisation measures how much gambling occurs within the licensed market. A higher rate indicates stronger consumer protection and effective regulation.

When could the new rules come into effect?
If approved, the new proposals are scheduled to take effect on 1 January 2027, giving operators and service providers time to adapt.

How has the industry responded?
Both Svenska Spel and the Swedish trade association BOS have expressed support for the proposals, urging the government to move forward with legislation.