Sweden’s Gambling Industry Sees Growth Amid Regulatory Review

Sweden’s gambling industry experienced steady growth in 2024, with the total market turnover reaching SEK 27.8 billion ($2.6 billion), marking a 3% increase compared to the previous year. Online gaming and betting continued to dominate the market, generating SEK 18 billion, reflecting a 5% rise.

The Swedish Gambling Authority, Spelinspektionen, released its full-year and fourth-quarter reports, highlighting sectoral performance. During the final quarter, the industry saw a turnover of SEK 7.6 billion, representing an 8% increase from Q4 2023 and a 14% rise from Q3 2024.

Online gaming and betting surged by 6% in Q4, reaching SEK 4.6 billion, while land-based gambling posted a 9% annual growth to SEK 63 million. State lotteries and games recorded a notable 19% increase to SEK 1.7 billion, whereas public lotteries rose by 5% to SEK 1.1 billion.

Casino Cosmopol, however, continued its decline, with turnover dropping from SEK 92 million in Q4 2023 to SEK 31 million in Q4 2024. For the full year, the casino’s revenue plummeted 66% to SEK 160 million.

By the end of 2024, Sweden’s national self-exclusion service, Spelpaus, had recorded 120,600 registrants, a 3% increase in the last quarter alone. The initiative is designed to protect individuals from problem gambling by allowing them to block access to licensed gaming operators.

Swedish Government Targets Unlicensed Operators

Alongside the financial reports, the Swedish government announced an upcoming review of the Gambling Act, aiming to strengthen consumer protections and address unlicensed gambling. The investigation will focus on closing regulatory gaps that enable offshore operators to continue serving Swedish customers without a local license.

The government-appointed investigator, Marcus Isgren, chairman of the Swedish Board of Consumer Complaints, is expected to submit findings by September 17. Minister of Financial Markets Niklas Wykman underscored the initiative’s importance, stating: “We will stop rogue gambling companies that exploit vulnerable consumers. 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 Swedish Online Gambling Industry Association (BOS) welcomed the review, emphasizing that stricter regulations are necessary to curb unlicensed gambling. BOS Secretary General Gustaf Hoffstedt noted that despite previous reforms, many unlicensed operators have exploited loopholes to continue offering services to Swedish players.

Since Sweden’s gambling market re-regulated in 2019, operators without a Swedish license have been able to bypass restrictions by avoiding the use of Swedish language and currency. BOS has long advocated for an amendment to the Gambling Act, arguing that the current system allows unlicensed operators to flourish.

“The gambling licence market was leaking like a sieve,” Hoffstedt said. “Many unlicensed gambling companies continued accepting Swedish customers by circumventing language and currency restrictions. The day before yesterday, we reminded the government of this in a letter, and now we are being listened to. It is very welcome.”

Calls for Clearer Legislation

Sweden’s National Audit Office (NAO) has previously pointed out that vague regulatory guidelines have contributed to an expanding grey market. The agency recommended that the government clarify licensing requirements to enhance regulatory oversight.

A key concern lies in the wording of the Gambling Act, particularly Chapters 18 and 19, which govern payment restrictions and criminal liabilities for illegal gambling. Current regulations only allow authorities to block transactions if a gambling website explicitly targets Swedish consumers through language or currency. This limitation has enabled unlicensed operators to continue serving Swedish players, as long as they avoid Swedish-language content and transactions in SEK.

The Swedish Court of Appeal recently ruled against the Swedish Gambling Authority (SGA) in a legal dispute with payment provider Zimpler. The court determined that the Gambling Act lacks sufficient clarity on what constitutes targeting Swedish consumers, further underscoring the need for reform.

BOS has urged the Ministry of Finance to amend the legislation to prevent unlicensed gambling.

Hoffstedt stressed the importance of closing loopholes, stating: “Unlicensed gambling should be eliminated in Sweden. It is completely inadequate that around a quarter of all gambling is unlicensed, not least given the total absence of consumer protection on the black gambling market. If we are to succeed in eliminating this part of the gambling market, the Gambling Act must be amended, and all unlicensed gambling must be criminalised.”

The association also pointed to Denmark as an example of a jurisdiction achieving high levels of player channelization into the licensed market. Hoffstedt suggested two potential approaches: reducing restrictions on licensed operators to make them more appealing or significantly increasing enforcement against unlicensed alternatives.

As the Swedish government moves forward with its regulatory review, industry stakeholders await further details on potential legislative changes and their impact on the country’s gambling landscape.

Source:

''BOS välkomnar regeringens översyn av spellagen'', bos.nu, February 20, 2025.

''Statlig utredare ska se över spellagen'', regeringen.se, February 20, 2025.

''OM BEHOVET AV ATT ÄNDRA TILLÄMPNINGSOMRÅDET I SPELLAGEN'', bos.nu, February 18, 2025.

''Spelbolag med svensk licens omsatte 27,8 miljarder kronor under 2024'', spelinspektionen.se, February 20, 2025.