The Swedish government has appointed an investigator to lead a review of the country’s Gambling Act to enforce tougher policies against illegal operators.
The Gambling Act review was announced Thursday (20 February) and cannot run for longer than 17 September 2025. Marcus Isgren, chairman and head of the Swedish Board of Consumer Complaints, has been appointed as the investigator.
In its investigation, the government will consider measures that could make it tougher for illegal sites to operate in Sweden.
“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,” minister for financial markets Niklas Wykman said in a statement.
Sweden’s gambling regulator Spelinspektionen published data in October which suggests the market’s rate of channelisation was 86% in 2023. That was based on player survey responses and estimates from research specialist H2 Capital.
This means it believes that 14% of player traffic is going to illegal sites versus licensed operators.
But more realistic estimates from gambling trade body Branschföreningen för Onlinespel (BOS) and monopoly operator ATG place the market’s channelisation rate between 70% and 80%.
In an October channelisation report, ATG data showed traffic to unlicensed gambling sites is up tenfold since 2019 in Sweden.
The Gambling Act review appears to be in direct response to an open letter from BOS dated 18 February. The letter called for the government to review certain loopholes in Sweden’s gambling regulations. The loopholes enable illegal operators to target and engage players.
In the letter, BOS secretary general Guataf Hoffstedt said under Sweden’s legal framework unlicensed operators are only prohibited from offering gambling when targeting consumers in Swedish and/or processing transactions in Sweden’s local currency SEK.
To work around this rule, many black-market providers operate and market their products in English. They also offer the use of Euros. Hoffstedt said still appeals to many players as Swedes tend to understand English to a high proficiency.
“We would like the Government to take the initiative to change the scope of application of the Gambling Act so that it also becomes illegal to passively receive Swedish gambling consumers,” he said in the letter.
Hoffstedt today welcomed the government’s decision to launch a review. “We have advocated for an amendment to the Gambling Act in this regard ever since the reregulation of the Swedish gambling market in 2019,” he said in a written statement.
“It became apparent fairly immediately after the reregulation that the licensed gambling market was leaking like a sieve. This was partly because many unlicensed gambling companies were able to continue to accept Swedish gambling customers.”
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