Sweden Proposes Major Overhaul to Crack Down on Unlicensed Gambling
On September 24, 2025, the Sweden government took a significant step toward tightening its gambling regulations to combat unlicensed gambling. The Ministry of Finance published a comprehensive report by investigator Marcus Isgren, outlining plans to amend the country’s Gambling Act. The goal is to close existing loopholes that allow unlicensed operators to target Swedish players, often through English-language websites accepting payments in euros.
The core of the proposed changes revolves around replacing the current “directional criterion”—which determines whether online gambling is regulated based on whether it is “directed” at Sweden—with a broader “participant criterion.” Under the new rule, any online platform accessible to Swedish residents would fall under Swedish law, regardless of the operator’s marketing efforts or language used. This shift aims to eliminate the ability of unlicensed entities to sidestep regulations by avoiding obvious Swedish markers like language or currency.
In addition to this, the proposals seek to extend prohibitions beyond advertising to include entities such as payment processors and financial institutions that facilitate illegal gambling activities. A presumption rule is suggested, whereby payment providers processing transactions related to unlicensed operators would automatically assume Swedish participation unless they can demonstrate otherwise. Criminal provisions would also be adjusted so that operating or promoting unlicensed gambling services would carry penalties, further reinforcing the regulatory crackdown.
These measures are designed to boost Sweden’s channelisation rate—aiming for at least 90% of gambling to occur within the licensed market. Currently, the Swedish Gambling Authority estimates that around 85% of gambling activity is channelled through licensed operators, a slight decline from 86% the previous year, highlighting the need for more stringent enforcement.
Minister of Finance Markets Niklas Wykman expressed his support for the proposals, describing them as “a crucial step in creating a safer and fairer gambling market.” He indicated that the government would now prepare the amendments for review, with the hope of enacting them by January 1, 2027, pending parliamentary approval. Industry stakeholders have also voiced their approval. Svenska Spel’s CEO Anna Johnson welcomed the initiatives, emphasizing the importance of consumer protection and market trust. She advocated for additional measures such as DNS blocking of illegal sites to further fortify the legal gambling environment.
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The Swedish Online Gambling Trade Association BOS has long been critical of the current framework. Its Secretary General, Gustaf Hoffstedt, welcomed the proposed legislation, emphasizing that it would criminalize nearly all unlicensed gambling activities. He called on the government and Riksdag to act swiftly, noting that “Unlicensed gambling in Sweden must be smoked out.” Earlier this month, BOS also called for a broader gambling inquiry to explore further measures, including relaxing restrictions on loyalty bonuses, which are currently banned entirely.
Hoffstedt highlighted the importance of a comprehensive approach: “The appointment of a broad inquiry tasked with preventing leakage to the unlicensed gambling market would undoubtedly be this government’s most important measure to protect and strengthen the legal regulated gambling market, before Sweden goes to the polls in September next year.” With these proposed amendments, Sweden aims to bolster its regulatory framework, protect consumers, and ensure that the majority of gambling activity occurs within its licensed sector.
