Sweden is preparing to close longstanding loopholes in its Gambling Act that have allowed unlicensed operators to reach local players via English-language websites and foreign currencies. On September 25, the Ministry of Finance released a comprehensive report by investigator Marcus Isgren, outlining key amendments aimed at strengthening enforcement and protecting Swedish consumers.
At the heart of the proposal is the replacement of the current “directional criterion”—which limits the law’s application to operators visibly targeting Sweden—with a “participant criterion”, under which any gambling site accessible by Swedish players would fall under national jurisdiction, regardless of language, currency, or marketing strategies.
Expanding Liability Across the Ecosystem
Isgren's report also recommends broadening the law’s reach to include entities that support illegal gambling. This would extend criminal liability not just to unlicensed operators, but also to payment processors and service providers facilitating transactions with them.
A “presumption rule” would apply to these intermediaries: unless they can prove otherwise, they must assume Swedish users are involved if they process payments linked to an unlicensed gambling operator.
Additional amendments would toughen criminal penalties related to both unlicensed gambling and its promotion.
Government and Industry Backing
The proposals mark a significant milestone in a review process launched by Finance Markets Minister Niklas Wykman earlier this year. In a statement, Wykman said the reform is “a crucial step in creating a safer and fairer gambling market.” The government will now prepare the measures for a formal consultation and parliamentary debate. If approved, the new rules would take effect January 1, 2027.
The changes were welcomed by major stakeholders, including Svenska Spel, Sweden’s state-owned gambling company. CEO Anna Johnson supported the measures and reiterated the call for DNS blocking of illegal sites.
“This is about improved protection for consumers, but also about safeguarding trust in the entire Swedish gambling market,” Johnson said.
Industry Association BOS Voices Support, Pushes for Further Inquiry
The online gambling trade group BOS—a consistent critic of the current legal framework—also voiced strong support. Secretary General Gustaf Hoffstedt praised the report as a major step toward a better-regulated market.
“Unlicensed gambling in Sweden must be smoked out,” he said, adding that he expects the government to submit a bill to Parliament shortly.
Earlier this month, BOS called for a broader inquiry into the Swedish gambling market, advocating for reforms that would reduce leakage to unlicensed platforms. Among their suggestions was easing the complete ban on loyalty bonuses, arguing that such incentives could help retain players within the legal system.
Strengthening Channelisation and Player Protections
The proposed updates are also intended to help Sweden achieve its 90% channelisation goal, the proportion of gambling activity taking place through licensed operators. According to Spelinspektionen, Sweden’s Gambling Authority, that figure currently stands at 85%, down from 86% a year earlier.
Also included in the proposal is an upgrade to Spelpaus, the national self-exclusion tool, which would require stricter player identification procedures from licensed operators.
If adopted, Isgren’s reforms could provide the tools necessary to increase compliance, deter illegal operators, and better protect Swedish players moving forward.
Source:
“Sweden targets unlicensed operations with Gambling Act amendment”, regeringen.se. September 24, 2025
