Sweden to Overhaul Gambling Act to Strengthen Consumer Protection and Combat Unlicensed Operators
The Swedish government has initiated a comprehensive review of the country’s Gambling Act, aiming to bolster consumer protections and tighten regulations against unlicensed gambling operators. The move is intended to close existing loopholes that allow offshore companies to continue targeting Swedish players without a local licence.
Addressing Regulatory Gaps
Under the current law, gambling companies can operate without a Swedish licence as long as they refrain from using Swedish-specific markers such as the language or currency. This has led to a growing “grey market” where unlicensed operators continue to attract Swedish consumers who are comfortable using English and the euro.
To address these concerns, the government has appointed Marcus Isgren, chairman of the Swedish Board of Consumer Complaints, as the lead investigator. He will assess potential amendments, with particular focus on revising the “directional criterion”—the key regulation that determines whether a gambling service must obtain a Swedish licence. Isgren is expected to present his findings and recommendations by 17 September 2025.
Government and Industry Reactions
Minister of Financial Markets Niklas Wykman stressed the importance of regulatory reforms, stating:
“We will stop rogue gambling companies that exploit vulnerable consumers. By amending the Gambling Act, we will create a safer and healthier gambling market.”
The Swedish Trade Association for Online Gambling (BOS) has long advocated for stricter measures to prevent unlicensed operators from circumventing licensing requirements. Secretary General Gustaf Hoffstedt welcomed the government’s responsiveness, highlighting the urgent need for reform:
“Since the re-regulation of the gambling market in 2019, it became clear that the system was leaking like a sieve. Many unlicensed operators continued serving Swedish customers by bypassing language and currency restrictions. We have consistently pushed for these changes, and it is reassuring to see the government taking action.”
Strengthening Enforcement
Sweden’s National Audit Office (NAO) previously identified unclear regulations as a contributing factor to the rise of unlicensed gambling. The NAO recommended clearer definitions of when a licence is required and called for enhanced enforcement powers for the Swedish Gambling Authority (SGA).
In a related legal case, the Swedish Court of Appeal recently ruled against the SGA in a dispute with payment provider Zimpler, citing ambiguities in the law regarding what constitutes targeting Swedish consumers. This ruling further underscores the need for legislative reform.
As the government moves forward with the review, industry stakeholders and regulators alike are keenly awaiting the proposed changes, which could significantly reshape Sweden’s gambling market and strengthen consumer protections.