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Sweden is gearing up for significant amendments to its Gambling Act, following a comprehensive inquiry led by investigator Marcus Isgren. The recent report, submitted to the Ministry of Finance, outlines several proposed changes to ensure state revenue and target unlicensed gambling operators who exploit loopholes to reach Swedish players.
The long-awaited review marks a pivotal moment for Sweden’s gambling industry, as the Ministry of Finance has now made Isgren’s recommendation public. If these new regulations receive approval, they are set to come into effect on January 1, 2027.
Isgren proposals
Under the current framework, online gambling in Sweden is only regulated if it is deemed “directed” at Swedish players. This loophole has enabled many unlicensed operators to evade scrutiny by designing their services to lack obvious Swedish identifiers, such as language or local marketing.
The proposed shift to a “participant criterion” would change that, extending the law to any situation where Swedish residents can access and participate in online gambling.
In addition to this major change, Isgren’s proposals aim to expand the ban on promoting illegal gambling; this would not only cover advertising but also include payment processors and other financial services that facilitate unlicensed operations.
A key element of these recommendations is a presumption rule, meaning that if a provider processes payments for an unlicensed operator, it must be assumed that Swedish players are involved unless proven otherwise.
Furthermore, the memorandum suggests revisions to criminal laws, making unlicensed gambling and the promotion of such services illegal and subject to prosecution. These collective measures are designed to help Sweden’s channelization goal, which aims for at least 90% of gambling activity to occur with licensed operators.
Recently, Sweden’s Gambling Authority reported that channization currently sits at 85%, a slight decline from 86% the previous year.
Multiple stakeholders welcome recommendations
Since the announcement of the Gambling Act review by Finance Markets Minister Niklas Wykman in February 2025, there has been a growing call for stricter measures against illegal operators.
Industry stakeholders have long pointed out the flaws in the existing regulations. The online gambling trade association, BOS, has consistently highlighted how unlicensed operators take advantage of the current directional test, attracting Swedish players by offering in English and accepting euro payments.
Minister Wykman expressed support for Isgren’s findings, describing them as a “crucial step in creating a safer and fairer gambling market”. He stated that the government would now refine these proposals in the Government Offices before moving to a formal review and parliamentary discussion.
The recommendations have also received praise from Anna Johnson, president and CEO of Svenska Spel, who restated her call for implementing DNS blocking to prevent access to illegal gambling sites.
“The investigator’s proposals are long-awaited and welcome,” Johnson said. “This is about improved protection for consumers, but also about safeguarding trust in the entire Swedish gambling market.
“It is absolutely necessary to continue with more measures to combat illegal gambling. 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.”
Proposals in line with BOS demands
BOS has long been critical of the Gambling Act and was quick to show support for the new proposal that requires unlicensed companies to take proactive steps to prevent Swedish players from accessing their services.
“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,” stated Secretary General Gustaf Hoffstedt.
“Good job Mr Investigator and with the hope of equally good job from the government and the Riksdag to now proceed with legislation on the matter. Unlicensed gambling in Sweden must be smoked out.”
Earlier in September, the group called for a comprehensive review of the gambling regulatory sector, urging the government to consider measures that would enhance channelization within Sweden’s gambling market. It advocated for more flexible regulations regarding loyalty bonuses, which are currently banned, as it would allow licensed operators to better compete with the black market.
“The appointment of a broad inquiry tasked with preventing leakage to the unlicensed gambling market would undoubtedly 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,” Hoffstedt stated at the time.
Source: iGaming Business
