Sweden is on the brink of major changes to its Gambling Act, following a detailed investigation by Marcus Isgren. The recent report, handed to the Ministry of Finance, includes proposed amendments aimed at safeguarding state revenues and targeting unlicensed gambling operators that exploit loopholes to reach Swedish players. These proposed regulations, if approved, will take effect on January 1, 2027.
The current regulatory framework only governs online gambling if it is “directed” at Swedish players, a loophole that has allowed many unlicensed operators to operate by not using obvious Swedish identifiers such as language or local marketing. Isgren’s proposal introduces a “participant criterion,” which extends the law to any situation where Swedish residents can engage in online gambling.
Furthermore, the recommendations aim to broaden the ban on promoting illegal gambling. This would not only include advertising but also involve payment processors and financial services that facilitate unlicensed operations. A central component of the recommendations is a presumption rule, which states that if a provider processes payments for an unlicensed operator, it should be assumed that Swedish players are involved unless proven otherwise.
The memorandum also suggests amending criminal laws, making unlicensed gambling and its promotion illegal and prosecutable offenses. These measures are part of Sweden’s channelization goal, which seeks at least 90% of gambling activity to occur with licensed operators. Sweden’s Gambling Authority recently reported a channelization rate of 85%, down slightly from 86% the previous year.
The review of the Gambling Act was announced by Finance Markets Minister Niklas Wykman in February 2025, leading to increased calls for stricter measures against illegal operators. Industry stakeholders have long criticized the current regulations. The online gambling trade association, BOS, repeatedly pointed out how unlicensed operators exploit the directional test by offering services in English and accepting euro payments.
Minister Wykman supported Isgren’s findings, seeing them as essential for creating a safer and fairer gambling market. He indicated that the government would now refine these proposals in the Government Offices before moving to a formal review and parliamentary discussion.
Anna Johnson, president and CEO of Svenska Spel, praised the recommendations and reiterated her call for implementing DNS blocking to prevent access to illegal gambling sites. “The investigator’s proposals are long-awaited and welcome,” she noted. “This is about better protection for consumers and maintaining trust in the Swedish gambling market. More measures are needed to combat illegal gambling. DNS blocking is a necessary next step to strengthen the Swedish licensing market and protect Swedish consumers.”
BOS, a long-time critic of the Gambling Act, quickly supported the new proposal requiring unlicensed companies to proactively prevent Swedish players from accessing their services. “This is an important step towards strengthening the Swedish gambling licence market,” stated Secretary General Gustaf Hoffstedt. “I foresee the government soon submitting a bill to the Riksdag in line with the investigation’s proposal. Unlicensed gambling in Sweden must be eradicated.”
Earlier in September, BOS called for a comprehensive review of the gambling regulatory sector, urging measures to enhance channelization within Sweden’s gambling market. It advocated for more flexible regulations on loyalty bonuses, which are currently banned, to help licensed operators better compete with the black market. Hoffstedt emphasized that a broad inquiry aimed at preventing leakage to the unlicensed market would be vital for protecting and strengthening the legal gambling market ahead of Sweden’s elections next year.
The proposed amendments represent a significant step in Sweden’s ongoing efforts to regulate its gambling industry more effectively. With the government now poised to refine and review these proposals, the future of Sweden’s gambling market hangs in the balance, promising increased protection for consumers and a level playing field for licensed operators. The upcoming parliamentary discussions will be crucial in determining the final shape of these regulations and their impact on both the local and international gambling communities.
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