Swedish government initiates Gambling Act review
The Swedish government has initiated a comprehensive review of the country’s Gambling Act, aiming to implement stricter regulations against illegal operators in a move to fortify the integrity of its gambling market.
This pivotal review, announced on February 20, had a clear directive: it must be concluded by September 17, 2025. To spearhead this initiative, the government has appointed Marcus Isgren, chairman of the Swedish Board of Consumer Complaints, as the lead investigator for this critical undertaking.
As part of the investigation, the government is set to explore robust measures designed to undermine the operational capabilities of illegal gambling websites in Sweden. “We will amend the Gambling Act to enhance its relevance. This reform is one of the most significant steps toward establishing a safer and healthier gambling environment,” stated Niklas Wykman, the Minister for Financial Markets.
Recent data published by Sweden’s gambling regulator, Spelinspektionen, indicates a concerning channelization rate of 86% for 2023, based on insights from player surveys and analyses conducted by research firm H2 Capital. This statistic suggests that 14% of players are turning to illegal sites instead of licensed operators, illuminating significant gaps in the current regulatory framework.
However, alternative evaluations from the gambling industry’s trade body, Branschföreningen för Onlinespel (BOS), in conjunction with monopoly operator ATG, offer a more conservative channelization rate estimate ranging between 70% to 80%. Furthermore, ATG’s data from an October channelization report highlights a staggering tenfold increase in traffic to unlicensed gambling platforms since 2019, underscoring urgent need for regulatory reform.
Industry Calls for Regulatory Reform Gain Traction
The forthcoming review seems to respond directly to an open letter from BOS dated February 18, which urged the government to address specific loopholes within Sweden’s gambling laws. Such loopholes have allowed illegal operators to not only infiltrate the market but also actively engage Swedish players.
In the aforementioned letter, BOS Secretary General Gustaf Hoffstedt elucidated that under Sweden’s current legal framework, unlicensed providers are prohibited from offering services to consumers within the country or processing transactions in the Swedish krona (SEK). Nonetheless, many illegal operators circumvent these regulations by marketing in English and accepting euros, thus appealing to the large segment of Swedish players proficient in English.
Hoffstedt called for a revision of the Gambling Act’s application scope to classify passive acceptance of Swedish gambling consumers as illegal. “We urge the government to take decisive action on this issue,” he remarked.
He further welcomed the government’s decision to initiate a review, stating, “We have long advocated for a reevaluation of the Gambling Act ever since the re-regulation of the Swedish gambling market in 2019. It became evident almost immediately that the licensed market was experiencing significant leakage, primarily due to the persistence of unlicensed companies accepting Swedish customers.”
This call for reform not only reflects the industry’s concern but also aligns with global trends where jurisdictions are increasingly focused on curbing illegal gambling activities to protect consumers and ensure a fair playing field for licensed operators. The unfolding review presents a vital opportunity for Sweden to refine its regulatory approach, thereby fortifying its gambling landscape against unlawful practices.
