The Swedish Government’s Review of the Gambling Act: Tackling Illegal Operators
In a significant move to strengthen its gambling regulations, the Swedish government has appointed an investigator to lead a comprehensive review of the country’s Gambling Act. This initiative is a response to the increasing prevalence of illegal gambling operators and aims to impose tougher policies to safeguard players and the integrity of the gambling market. Announced on February 20, 2025, the review is expected to be completed by September 17, 2025, and will be spearheaded by Marcus Isgren, chairman of the Swedish Board of Consumer Complaints.
Understanding the Need for a Review
The necessity for the Gambling Act review has become increasingly pertinent as reports reveal a concerning trend in the Swedish gambling landscape. The government’s recent investigation will specifically consider measures to make it more difficult for unlicensed and illegal gambling sites to operate within Sweden’s borders. As Minister for Financial Markets Niklas Wykman stated, “We will do this by amending the Gambling Act so that it becomes more appropriate. This is one of the single most important measures for a safer and healthier gambling market.”
The State of Channelisation in Sweden
As part of the review process, data from the Swedish gambling regulator, Spelinspektionen, serves as a critical reference point. An October report indicated that the market’s rate of channelisation—the proportion of players engaging with licensed operators—stood at 86% in 2023. This data, based on player surveys conducted by research specialist H2 Capital, suggests that 14% of player traffic is directed towards illegal sites. However, a more conservative estimate from industry body Branschföreningen för Onlinespel (BOS) and the state monopoly operator ATG places this figure between 70% and 80%. The divergence in these statistics highlights a growing concern within the gambling landscape, especially given that ATG’s data indicated a tenfold increase in traffic to unlicensed operators since 2019.
Industry Voices and Advocacy for Change
The recent announcement of the Gambling Act review appears to be a responsive measure to ongoing advocacy from industry stakeholders. An open letter issued by BOS on February 18 underscored the pressing need to address loopholes in Sweden’s gambling regulations, which illegal operators exploit to reach Swedish consumers. According to BOS Secretary General Guataf Hoffstedt, the current legal framework only prohibits unlicensed operators from targeting consumers in Swedish or processing transactions in Swedish Krona (SEK). However, many black-market providers circumvent this by marketing their services in English and allowing transactions in Euros, which is appealing to Swedish players due to their high proficiency in the English language.
Hoffstedt’s sentiments were shared by many in the industry, who pressed for reforms that would broaden the scope of the Gambling Act. In his letter, he asserted, “We would like the Government to take the initiative to change the scope of application of the Gambling Act so that it also becomes illegal to passively receive Swedish gambling consumers.” Following the government’s decision to launch the review, Hoffstedt expressed his gratitude, noting, “We have advocated for an amendment to the Gambling Act in this regard ever since the re-regulation of the Swedish gambling market in 2019.”
The Path Forward for Regulating Gambling in Sweden
The Swedish gambling market underwent significant changes with re-regulation in 2019, aimed at providing consumers with a safer gambling experience and ensuring a competitive environment for licensed operators. However, as Hoffstedt pointed out, it became evident shortly after the re-regulation that the market was susceptible to leaks. Unlicensed companies continued to attract Swedish players, circumventing regulations and undermining efforts to promote responsible gambling.
As the review of the Gambling Act progresses, key areas for consideration will likely include more stringent regulations for advertising by foreign operators, enhanced penalties for illegal operations, and improved mechanisms for monitoring player behavior to better protect vulnerable consumers.
Conclusion
The appointment of an investigator to review Sweden’s Gambling Act represents a proactive step by the government to address the growing challenges posed by illegal gambling operators. As both industry advocates and regulators work toward a more robust regulatory framework, the hope is that the ensuing measures will not only enhance player protection but also foster a competitive and fair gambling environment. As the review unfolds, stakeholders will be watching closely to see how these proposed changes shape the future of gambling in Sweden, ensuring that the market can thrive while safeguarding consumer interests.
