Sweden Gambling Act amendment targets unlicensed operators

The long-anticipated review of Sweden’s Gambling Act reached a milestone Wednesday as the Ministry of Finance published investigator Marcus Isgren’s report, outlining amendments designed to strengthen the country’s regulatory framework and close loopholes that enabled illegal operators to market to locals. This was done via English-language sites and payments accepted in euros.

Isgren’s report has proposed scrapping the Gambling Act’s current “directional criterion” for online gambling and replacing it with a new rule that prohibits illegal sites from providing access for Swedish players, regardless of whether operators are actively targeting the market.

What are Isgren’s key proposals?

Under the current regime, online gambling falls under Swedish law only if it is considered to be “directed” at Sweden. This standard has allowed many unlicensed companies to avoid oversight by structuring their services in ways that avoid obvious Swedish markers, such as language, currency or local marketing. The proposed shift to a “participant criterion” would instead apply the law whenever Swedish residents are able to access and play.

Additional recommendations would broaden the prohibition on promoting illegal gambling in Sweden. Beyond advertising, this would extend to payment processors, financial services and other support providers that support unlicensed operations.

A presumption rule would apply, so that if a provider processes payments to or from an unlicensed operator, it must assume Swedish participation unless there is clear evidence to the contrary.

The memorandum also proposes adjustments to criminal provisions, meaning unlicensed gambling and the promotion of unlicensed services would be made illegal and subject to criminal charges.

Collectively, the measures aim to strengthen Sweden’s channelisation target — ensuring at least 90% of gambling takes place with licensed operators, in order to protect consumers and safeguard tax revenues.

Earlier this month, Sweden’s Gambling Authority estimated that channelisation is currently 85%, down from 86% during the prior year.

Minister welcomes proposals

Finance Markets Minister Niklas Wykman announced the Gambling Act review in February 2025, with a view to enforcing tougher policies against illegal operators.

Industry stakeholders have long debated the shortcomings of the current framework. The online gambling trade association BOS has repeatedly warned that unlicensed operators exploit the directional test to reach Swedish consumers, often offering services in English and using euro currency.

Minister Wykman welcomed Isgren’s submission, calling it “a crucial step in creating a safer and fairer gambling market.” In a press statement, he said the government would now prepare the proposals within the Regeringskansliet (Government Offices) before a formal referral round and parliamentary debate. If approved, the reforms would come into force on 1 January 2027.

Isgren’s proposals were welcomed by Svenska Spel president and chief executive Anna Johnson, who repeated  a call for DNS blocking of illegal sites.

“The investigator’s proposals are long-awaited and welcome,” Johnson said. “This is about improved protection for consumers, but also about safeguarding trust in the entire Swedish gambling market.

“It is absolutely necessary to continue with more measures to combat illegal gambling. DNS blocking of illegal gambling sites is a natural next step to take. It would further strengthen the Swedish licensing market as well as the protection of Swedish consumers.”

BOS demands new gambling inquiry

BOS — a longtime critic of the Gambling Act — welcomed the proposal that would force unlicensed companies to take active measures to exclude Swedish gamblers.

Secretary General Gustaf Hoffstedt said: “This is an important contribution to the possibility of strengthening the Swedish gambling licence market, which is now proposed to criminalise almost all unlicensed gambling in Sweden. I foresee the government shortly submitting a bill to the Riksdag in accordance with the investigation’s proposal.

“Good job Mr. Investigator and with the hope of equally good job from the government and the Riksdag to now proceed with legislation on the matter. Unlicensed gambling in Sweden must be smoked out.”

In early September, the group called for a new broad gambling inquiry, with the task of proposing measures that strengthen channelisation in the Swedish gambling market. Among the proposals that should be considered, BOS mentioned a less rigid regulation of loyalty bonuses, which are currently completely prohibited.

Hoffstedt said at the time: “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.”