Sweden takes decisive action to strengthen its regulated gambling market.
A government inquiry in Sweden has recommended major reforms to the country’s Gambling Act, proposing the criminalisation of unlicensed operators that passively accept Swedish players. Currently, unlicensed gambling companies can serve Swedish customers if they avoid using the Swedish language or currency. The proposed change seeks to close this loophole by replacing the “directional criterion” with a new “participant criterion.”
This shift means that any gambling company allowing Swedish consumers to participate without a licence would face criminal liability. The Swedish trade body BOS has welcomed the proposal, stating it is a critical step in protecting licensed operators and ensuring fair competition in the regulated market. Gustaf Hoffstedt, secretary general of BOS, described the reform as an essential move to strengthen the country’s licensing system.
In addition to targeting unlicensed operators, the inquiry has recommended expanding restrictions on payment providers. Financial mediators would be required to assume Swedish residents are gambling domestically unless proven otherwise, placing a stronger burden on payment services to block transactions linked to unlicensed gambling.
The proposed amendments are set to take effect on January 1, 2027, pending approval from the Riksdag. This timeline reflects the complexity of implementing such sweeping changes but highlights Sweden’s commitment to protecting consumers and addressing the risks associated with unlicensed gambling.
Since the re-regulation of the market in 2019, BOS and other stakeholders have consistently called for stronger enforcement against unlicensed operators. The new proposal represents a significant step forward, aiming to “smoke out” unlicensed gambling and provide a safer, more secure environment for players. If enacted, the reforms would mark one of the most substantial regulatory changes in Sweden’s gambling sector in recent years.
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