Proposed Changes to Sweden’s Gambling Act Seek to Close Regulatory Loopholes
The Swedish Ministry of Finance has made a significant move in the ongoing review of the Gambling Act, releasing a report by investigator Marcus Isgren that outlines potential amendments aimed at tightening regulations. These changes are designed to prevent unlicensed operators from marketing their services to Swedish players, particularly through English-language websites that accept euro payments.
One of the key changes proposed involves replacing the existing “directional criterion” for online gambling—a standard that currently determines if a site is subject to Swedish law based on whether it explicitly targets Sweden. The suggested new “participant criterion” would instead focus on any access afforded to Swedish residents, thereby encompassing a broader range of online gambling activities and making it harder for unlicensed companies to evade oversight.
Additionally, the report advocates for widening the scope of restrictions against promoting illegal gambling in Sweden. This would not only include advertising but also encompass payment processors and financial services that facilitate unregulated operations. A new presumption rule would mean that if a provider handles payments related to an unlicensed operator, they would be assumed to be serving Swedish customers unless proven otherwise.
Changes to criminal provisions are also on the table, aiming to classify unlicensed gambling and the promotion of illegal services as criminal offenses. This is part of a broader effort to enhance "channelisation," or the percentage of gambling that occurs through licensed operators, which the government aims to increase to 90% to ensure consumer safety and secure tax revenues.
Finance Markets Minister Niklas Wykman, who initiated this review in February 2025, expressed strong support for the proposed changes. He highlighted that they represent a vital step towards creating a more secure and equitable gambling landscape in Sweden. Following consultation within the Government Offices, if adopted, these reforms are expected to take effect by January 1, 2027.
The recommendations have garnered positive responses from various industry players. Anna Johnson, the CEO of Svenska Spel, echoed the urgency for DNS blocking of illegal sites, stating that the proposals not only improve consumer protection but also reinforce trust in the Swedish gambling market.
In a related movement, the trade association BOS has called for a more comprehensive inquiry into gambling regulations, emphasizing the need for active measures to prevent unlicensed operators from attracting Swedish players. Secretary General Gustaf Hoffstedt highlighted that these changes could significantly strengthen the legal gambling market in Sweden, suggesting an impending legislative proposal from the government to address unlicensed operations.
BOS also advocates for revising current restrictions on loyalty bonuses, which are fully prohibited, arguing that more flexible regulations could enhance the competitiveness of licensed operators while curbing leakage to the unregulated market.
With record highs in the number of unlicensed operators infringing upon the Swedish market, this review appears more critical than ever in safeguarding the integrity of gambling in the country.