The Swedish government has initiated a significant review of its Gambling Act, aiming to close loopholes that have allowed unlicensed gambling operators to target Swedish players.
The move comes after the Swedish Trade Association for Online Gambling (BOS) raised concerns about legal grey areas that allow these companies to operate without consequences. The government wants to tighten the rules to better protect consumers and ensure fair play in the gambling market.
Background on the Gambling Act
Sweden revamped its Gambling Act in 2019 to regulate online gambling and require operators to get a license. But critics say the law is too vague when it comes to defining what it means to target Swedish players.
As it stands now, unlicensed gambling companies can still take on Swedish customers as long as they don’t use the Swedish language or currency. This loophole has fueled an increase in unregulated gambling, making it harder for licensed operators to compete.
Gustaf Hoffstedt, secretary general of BOS, pointed out the issue with the current system: “The problem does not lie with any individual payment provider, but with inadequate legislation. The so-called Scope of Application of the Gambling Act does not criminalise unlicensed gambling companies that passively accept Swedish consumers.”
He explained that many of these operators stay under the radar by avoiding Swedish-language services and transactions in kronor, making it easy for them to operate without a license.
The government’s plan
To tackle this issue, Sweden’s Ministry of Finance has put Marcus Isgren, chairman of the Swedish Board of Consumer Complaints, in charge of reviewing the Gambling Act. He is tasked with creating a system that will keep unlicensed operators out of the Swedish market by September 17, 2025.
One possible fix could be adjusting the “directional criterion,” which determines whether a gambling service needs a Swedish licence.
Minister for Financial Markets Niklas Wykman stressed the importance of these changes: “We will stop rogue gambling companies that exploit vulnerable consumers.” The government sees this review as a crucial step in closing the loopholes that have allowed illegal operators to thrive.
Recent legal ruling
This review gained even more urgency after a recent Court of Appeals ruled in favour of Zimpler, a payments platform accused of processing transactions for unlicensed gambling operators. The court found that while Zimpler provided these services, it wasn’t technically illegal under the current law. The ruling exposed weaknesses in the legislation and added pressure to push for reforms.
Hoffstedt pointed out that since the 2019 law change, it has become clear that Sweden’s licensed gambling market is “leaking like a sieve,” with unlicensed operators continuing to serve Swedish players without much risk. He welcomed the government’s decision to address the problem.
Industry reactions
Most of the gambling industry supports the government’s decision to review the Gambling Act. Many believe stricter regulations will protect players and restore trust in Sweden’s licensed gambling market.
According to data from Spelinspektionen, about 14% of Swedish gambling traffic goes to illegal sites, highlighting the challenge for regulators.
BOS has long pushed for changes to the law that would criminalise all unlicensed gambling, no matter what language or currency is used.
Hoffstedt reinforced this point in his discussions with the government: “Unlicensed gambling should be eliminated in Sweden… If we are to succeed in eliminating this part of the gambling market, the Gambling Act must be amended.”
What’s next for Sweden?
As Sweden dives into this review, many in the industry are hopeful that real change is coming to better protect consumers and shut down illegal gambling operations. The results of this investigation will play a big role in shaping the future of online gambling in Sweden, ensuring that licensed operators have a fair chance against unregulated competition. The findings are expected by mid-September 2025, making it a key moment in Sweden’s efforts to secure its gambling market..
