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Sweden Moves to Criminalize Unlicensed Gambling by 2027

Editor by Editor
September 26, 2025
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Sweden-targets-unlicensed-operations-with-Gambling-Act-amendmentSweden is making ready main adjustments to its Gambling Act following the discharge of a authorities inquiry led by investigator Marcus Isgren. The report, delivered to the Ministry of Finance, outlines new measures supposed to strengthen shopper protections, safe state revenues, and clamp down on unlicensed playing operators who proceed to attain Swedish gamers by way of loopholes. If authorised, the brand new guidelines are scheduled to take impact on January 1, 2027.

From Directional to Participant-Based Oversight

At current, Swedish playing regulation applies solely when operators are deemed to be “directed” at Sweden—sometimes by way of using the Swedish language, native forex, or particular advertising and marketing. This method has left a niche within the system, permitting offshore corporations to function English-language websites with euro funds whereas nonetheless accepting Swedish clients.

Isgren’s report recommends abolishing this “directional criterion” and introducing a “participant criterion.” Under the brand new mannequin, the important thing query could be whether or not folks situated in Sweden can entry and take part within the sport, moderately than whether or not the positioning actively targets the market. To stay exterior the Act’s scope, operators could be obligated totake concrete and efficient steps to block Swedish residents.

The memorandum launched by the Ministry of Finance (Ds 2025:23) highlights that this reform is designed to “exclude unlicensed gambling in a more effective way than is currently possible,” with the broader intention of deterring crime linked to playing and bolstering shopper safety.

Expanded Ban on Promotion and Payments

The inquiry goes past web site entry, recommending tighter restrictions on those that facilitate unlicensed playing. Current regulation already bans promoting for unlawful operators, however the proposed adjustments would lengthen this prohibition to cowl fee processors, monetary establishments, and different service suppliers.

A presumption rule can also be included. This would require anybody processing funds for playing corporations to assume that transactions contain Swedish residents except there’s definitive proof of overseas play. In apply, this measure would make it considerably harder for unlicensed operators to transfer cash out and in of Sweden.

The inquiry additional suggests amending prison provisions, that means each unlicensed playing exercise and the promotion of unlicensed providers could be explicitly punishable beneath prison regulation.

Government and Industry Response

Finance Markets Minister Niklas Wykman, who initiated the Gambling Act assessment in February 2025, welcomed the proposals. In his assertion, he described the report as “a crucial step in creating a safer and fairer gambling market.” The subsequent stage will see the proposals reviewed inside the Government Offices earlier than referral and parliamentary debate.

State-owned operator Svenska Spel additionally voiced its help. President and CEO Anna Johnson praised the suggestions, describing them as “long-awaited and welcome.” Johnson emphasised that “DNS blocking of illegal gambling sites is a natural next step to take. It would further strengthen the Swedish licensing market as well as the protection of Swedish consumers.”

Meanwhile, the Swedish Trade Association for Online Gambling (BOS) additionally backed the adjustments, significantly the shift to criminalising unlicensed operators that at present exploit regulatory loopholes. BOS secretary basic Gustaf Hoffstedt commented: “This is an important contribution to the possibility of strengthening the Swedish gambling licence market, which is now proposed to criminalise almost all unlicensed gambling in Sweden. I foresee the government shortly submitting a bill to the Riksdag in accordance with the investigation’s proposal.”

BOS has lengthy pushed for reforms, repeatedly warning that the directional criterion undermines the licensing system. In early September, the affiliation referred to as for a broader playing inquiry to deal with market leakage, suggesting that stress-free strict bonus restrictions may enhance channelisation. Hoffstedt argued that such a assessment could be “this government’s most important measure to protect and strengthen the legal regulated gambling market, before Sweden goes to the polls in September next year.”

Looking Ahead

The authorities inquiry arrives towards the backdrop of Sweden’s channelisation fee—measuring the proportion of playing carried out with licensed operators—falling to 85%, in contrast to 86% a yr earlier. With the objective set at 90%, regulators see the proposed reforms as key to reversing this decline.

If the Riksdag adopts the suggestions, the brand new framework will come into power firstly of 2027, marking probably the most vital updates to Sweden’s playing regulation since its re-regulation in 2019.

Source:

Scope of application of the Gambling Act, Ds 2025:23, regeringen.se, September 24, 2025.



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