On Wednesday, the Swedish Ministry of Finance marked a pivotal moment in the ongoing reform of the country’s gambling laws with the release of a comprehensive report by investigator Marcus Isgren. This report lays out a series of amendments to the Gambling Act aimed at curbing the operations of illegal gambling sites that have been targeting Swedish consumers via English-language platforms and transactions in euros.
Central to Isgren’s recommendations is the elimination of the current “directional criterion” in the Gambling Act. This criterion has historically allowed many unlicensed operators to bypass Swedish regulations by avoiding obvious connections to Sweden, such as language, currency, or localized marketing efforts. Isgren proposes replacing this with a “participant criterion,” which would effectively apply Swedish law to any gambling service that Swedish residents can access, irrespective of the operators’ marketing intentions.
The suggested amendments go beyond the targeting of operators alone. They also aim at widening the prohibition on the promotion of illegal gambling activities within Sweden. This expansion would encompass advertising, as well as the roles of payment processors, financial service providers, and other entities that support unlicensed gambling operations.
A key element of the proposals is the introduction of a presumption rule. Under this rule, if any provider processes financial transactions involving an unlicensed gambling operator, they must assume Swedish participation unless they possess clear evidence to the contrary. This shifts the burden of proof onto those intermediaries, thus increasing accountability.
The report also calls for revisions to the criminal provisions under the Gambling Act. Engaging in or promoting unlicensed gambling could soon be criminalized, with violators facing potential criminal charges. The overarching objective of these measures is to fortify Sweden’s channelisation target, which aims to ensure that 90% of gambling activity occurs with licensed operators, thereby protecting consumers and ensuring tax revenues are safeguarded.
Recent figures from the Swedish Gambling Authority suggested a channelisation rate of 85%, a slight decrease from the previous year’s 86%. This decline has highlighted the need for more stringent regulations to meet the government’s targets.
Finance Markets Minister Niklas Wykman, who initiated the Gambling Act review in February 2025, expressed support for Isgren’s findings. The Minister acknowledged the long-standing concerns within the industry regarding the current framework’s loopholes. The online gambling trade association BOS has frequently criticized the directional test for allowing unlicensed operators to reach Swedish consumers, often through services offered in English and transactions in euros.
Minister Wykman described the report as a critical advancement towards a safer and more equitable gambling environment. He stated that the government would scrutinize the proposals within the Regeringskansliet (Government Offices) before initiating a formal referral process and parliamentary debate. Should these proposals receive approval, the reforms are slated for implementation on January 1, 2027.
Svenska Spel’s president and CEO, Anna Johnson, echoed these sentiments, emphasizing the necessity of DNS blocking for illegal gambling sites. She remarked that the investigator’s proposals were not just about consumer protection but also about restoring trust in the Swedish gambling market as a whole. For Johnson, further actions like DNS blocking would significantly bolster the Swedish licensing landscape and enhance consumer safety.
On the other hand, BOS, a vocal critic of the current Gambling Act, welcomed the proposal’s potential to compel unlicensed companies to actively exclude Swedish gamblers. BOS Secretary General Gustaf Hoffstedt praised the report as an important step in strengthening the Swedish gambling license market, noting its focus on criminalizing virtually all unlicensed gambling activities in the country. Hoffstedt anticipated that the government would soon present a bill to the Riksdag based on the investigation’s recommendations, underscoring the urgency to eradicate unlicensed gambling in Sweden.
Nonetheless, BOS also advocated for a broader gambling inquiry, suggesting that such an investigation could propose enhancements to support channelisation in the Swedish market. Hoffstedt indicated that relaxing the current prohibition on loyalty bonuses could be a beneficial measure to explore. In his view, launching a comprehensive inquiry to prevent leakage to the unlicensed market could be one of the government’s most impactful steps in bolstering the legal, regulated gambling sector, especially in the lead-up to the national elections next September.
As Sweden navigates these critical changes to its gambling laws, the industry watches closely, anticipating how these reforms will reshape the landscape of online gambling in the region. For both operators and regulators, the road ahead will likely involve balancing consumer protection with a competitive, fair market that adheres to the highest standards of regulation and oversight.