November 2025 marks six years since Sweden opened its regulated gambling market, yet its ambitious goal set in 2019—achieving a 90 percent channelisation rate—remains elusive. A recent Nordic Legal report presented at a BOS seminar in Stockholm sheds light on this ongoing struggle. Both Sweden and Denmark are losing ground to unlicensed operators despite adopting very different regulatory philosophies.
In Sweden, the approach to regulation is characterized by stringent rules. The country’s Gaming Act permits operators to offer only a single welcome bonus to each player, with loyalty schemes and ongoing incentives outright banned. Regulators argue that these measures protect consumers, but operators contend that they alienate players. “The current ban on retention bonuses is too restrictive and unnecessarily so,” several licensees reported to Nordic Legal. “There is a clear connection between lack of bonuses and lower channelling.”
Sweden’s regulator, Spelinspektionen, is known for its strict enforcement, which leaves operators feeling that “the regulator communicates through sanctions,” offering little room for dialogue. Lawmakers are now contemplating a reform for 2027, which could redefine this dynamic by extending the Gambling Act’s reach to any gaming activity involving Swedish residents, regardless of the operator’s location. This reform would also introduce transaction blocking for payments to unlicensed sites. BOS Secretary General Gustaf Hoffstedt sees this as a move towards a more balanced playing field, while Hans Lord Skarplöth, CEO of ATG, commented, “Then there are no excuses left.”
Conversely, Denmark employs a dialogue-driven model. The Danish regulator, Spillemyndigheden, favors collaboration over confrontation. Denmark permits ongoing bonuses under strict oversight, allowing its licensed operators to remain competitive while ensuring consumer protection. The Nordic Legal report describes Denmark’s system as “clearer and more proportionate,” emphasizing mutual trust between the regulator and licensees. However, this trust is now under strain. H2 Gambling Capital recently lowered Denmark’s estimated channelisation rate from 87 to 72 percent, equalling Sweden’s rate for the first time. Offshore crypto casinos and skin betting sites are luring players away more rapidly than regulators can respond.
The situation presents a stark contrast. Sweden constructs regulatory walls, while Denmark builds bridges. Despite their differing philosophies—one focused on control and the other on conversation—both nations face challenges in retaining players within the licensed system. Taxation provides another layer to the story. Sweden increased its gaming tax from 18 to 22 percent in 2024, while Denmark’s rate is even higher at 28 percent, one of the toughest in Europe. However, both models indicate that taxation alone cannot resolve channelisation issues if players find more attractive options elsewhere.
Product innovation is another critical oversight. Neither Sweden nor Denmark permits newer formats such as crash games, which are gaining popularity across Europe. The report warns that outdated regulations risk driving younger players towards more dynamic, unlicensed experiences.
Ultimately, Sweden and Denmark are pursuing the same objective: a safe, competitive, regulated market where players prefer legal options over risky alternatives. But their paths to achieving this couldn’t be more different. “The licensed market must be competitive, offer the products players demand and operators must operate under clear, proportionate, and predictable rules,” the analysis suggests. “Overreliance on restrictive or technical measures, without addressing the underlying causes of unlicensed play, is unlikely to deliver lasting results.”
For now, Denmark remains the more trusted model—open, flexible, and pragmatic. Sweden is placing its bets on reform and stricter enforcement to recapture its market share. The pressing question is not which country is right, but whether either can find the right balance between protection and freedom before more players move to offshore platforms. As both countries continue to navigate these challenges, the global igaming community watches closely, eager to see if a new equilibrium can be achieved.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.