Seven years after Sweden abandoned its gambling monopoly in favour of a licensing system, the debate over whether the reform has succeeded is far from settled.
When the new framework came into force in 2019, lawmakers set ambitious goals. The reform was designed to channel at least 90 percent of gambling into the regulated market, strengthen consumer protection, reduce gambling-related harm and ensure that more gambling companies paid taxes in Sweden.
Today, industry representatives, regulators and addiction experts all acknowledge that important challenges remain.
For Finland, which is preparing to open its own online gambling market to private operators in 2027, Sweden’s experience offers valuable lessons on both the opportunities and pitfalls of regulation.
Sweden’s reform has not fully achieved its original goals
Sweden’s licensing model fundamentally changed the country’s gambling industry. Hundreds of operators applied for licences, consumers gained greater choice, and the state introduced extensive responsible gambling requirements, including mandatory self-exclusion through Spelpaus and stricter marketing rules.
However, one of the reform’s central objectives keeping players within the licensed market has proved more difficult than expected.
Industry association BOS has repeatedly argued that a significant proportion of Swedish gambling now takes place on unlicensed websites that actively target Swedish consumers without complying with Swedish gambling regulations. Acting Secretary General Daniel Valiollahi recently criticised what he describes as insufficient enforcement against operators based abroad that continue to reach Swedish players.
At the same time, healthcare professionals continue to warn that online casino games remain the dominant source of severe gambling addiction cases, particularly among younger men who are drawn to fast-paced gambling products offering rapid betting cycles. Swedish authorities have also highlighted the significant financial consequences that gambling addiction can create for affected households.
Foreign online casinos continue to reach Swedish players
Perhaps the biggest challenge facing Swedish regulators is that licensing alone has not prevented offshore operators from entering the market.
While licensed gambling companies must follow strict Swedish rules covering bonuses, consumer protection, responsible gambling and marketing, many foreign websites remain accessible to Swedish players.
The Swedish government has itself recognised the problem. An official review led by investigator Marcus Isgren proposes expanding the country’s enforcement powers by allowing banks and payment service providers to block transactions to unlicensed gambling operators. Another proposal would broaden the scope of Swedish gambling legislation so that operators serving Swedish consumers could fall under Swedish law even if they are based abroad.
The commercial market also illustrates how dynamic the sector remains. According to Bettingbladet’s overview of new Swedish online casinos, new licensed operators continue to launch every year, while Swedish consumers still have access to a large number of offshore gambling brands outside the licensing system. In addition, the new casinos with a foreign license outnumber the new casinos with a Swedish license.
This creates an increasingly complex regulatory landscape. Authorities are tasked not only with supervising licensed operators but also with limiting the influence of companies that operate beyond Sweden’s jurisdiction.
Finland now faces many of the same questions
Finland is preparing to introduce its own licensing model in 2027, ending Veikkaus’ exclusive rights to offer online casino games and sports betting.
The reform has many similarities to Sweden’s model. Finnish policymakers hope to channel gambling towards licensed operators while improving consumer protection and creating a more competitive market.
At the same time, Finland has proposed some of Europe’s stricter responsible gambling measures. Draft legislation includes significant restrictions on gambling marketing, tighter rules for bonuses, and player protection measures that go beyond those seen in many other regulated European markets.
These measures are intended to reduce gambling-related harm, but they also raise an important policy question.
If the regulated market becomes noticeably less attractive than offshore alternatives, will consumers simply migrate to operators outside the Finnish licensing system?
Sweden’s experience suggests that this balance is difficult to achieve.
Regulation alone is not enough
The Swedish experience demonstrates that opening a gambling market is only the first step.
A licensing system can improve transparency, create tax revenue and introduce stronger consumer safeguards. But maintaining a high channelisation rate requires more than issuing licences. Regulators must also ensure that licensed operators remain competitive enough for consumers to choose them over offshore alternatives.
For Finland, this may prove to be one of the most important lessons from its Nordic neighbour.
The objective is not simply to regulate gambling, but also to persuade players to remain within the regulated market, where authorities can enforce responsible gambling measures and consumer protections.
Seven years after Sweden’s reform, that objective remains a work in progress. As Finland prepares for its own transition in 2027, policymakers have an opportunity to learn from Sweden’s successes, but perhaps even more importantly, from its continuing challenges.