Sweden Announces Immediate Review of Gambling Act
The Swedish government has appointed an investigator to review the country’s Gambling Act with the aim of strengthening measures against illegal gambling operators.
LISTEN TO THIS ARTICLE:Announced on Thursday, February 20, the review is set to conclude no later than September 17, 2025. Marcus Isgren, chairman of the Swedish Board of Consumer Complaints, will lead the investigation.
The government plans to explore ways to make it more difficult for unlicensed gambling sites to target Swedish players. According to Niklas Wkyman, they hope to identify ways to amend the Gambling Act so that it is able to ensures “a safer and healthier gambling market”.
Related: Sweden Tightens Gaming Regulations with New Amendments
Concerns over Illegal Gambling Activity
According to data released in October by Sweden’s gambling regulator, Spelinspektionen, the market’s channelization rate was 86% in 2023. This figure, based on player surveys and research from H2 Capital, indicates that 14% of gambling traffic is directed to unlicensed operators.
However, alternative estimates from industry sources, including the gambling trade group Branschföreningen för Onlinespel (BOS) and state-owned operator ATG, suggest the actual channelization rate is between 70% and 80%. ATG’s October report revealed a tenfold increase in traffic to unlicensed sites since 2019.
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Industry Pressure Prompts Action
The decision to review the Gambling Act comes following an open letter sent by BOS on February 18, that called upon the government to address regulatory loopholes that allow illegal operators to attract Swedish players.
BOS secretary general Guataf Hoffstedt explained that under the current law, unlicensed operators are only barred from targeting Swedish consumers directly or conducting transactions via casino payment methods in Swedish kronor (SEK). Many illicit providers circumvent these rules by offering services in English and accepting euros.
In his later statement, he called upon the government to update the Gambling Act so that it “becomes illegal to passively receive Swedish gambling consumers”.
We have advocated for an amendment to the Gambling Act in this regard ever since the reregulation of the Swedish gambling market in 2019. It became apparent fairly immediately after the reregulation that the licensed gambling market was leaking like a sieve. This was partly because many unlicensed gambling companies were able to continue to accept Swedish gambling customers.
RELATED TOPICS: Regulation
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