Swedish Trade Association urges government review of gambling regulation loopholes

• Swedish Trade Association for Online Gambling (BOS) calls for an independent commission to investigate gambling regulation effectiveness
• Concern over legal loopholes allowing unlicensed operators to target Swedish consumers by using non-Swedish languages and currencies
• Government appoints investigator to review Swedish Gambling Act with report due by 17 September 2025
• Industry estimates show channelisation rates significantly lower than official figures, with a quarter of market operating unlicensed
• Calls for tighter enforcement and legislative amendments to protect players and close regulatory gaps

The Swedish Trade Association for Online Gambling (BOS) has formally requested the Ministry of Finance to appoint an independent commission to investigate the effectiveness of Sweden’s gambling regulation, highlighting serious concerns about legal loopholes that allow unlicensed operators to legally accept Swedish players.

BOS sent a letter to the Ministry on 18 February 2025 outlining critical flaws in the current Gambling Act. The legislation only prohibits unlicensed operators from targeting Swedish consumers when using Swedish language or Swedish currency (SEK), whilst operators circumvent these restrictions by operating in English and accepting euros or other foreign currencies.

Government Response and Investigation

The Swedish government responded positively to BOS’s concerns by appointing Marcus Isgren, chairman of the Swedish Board of Consumer Complaints, to review the Gambling Act on 20 February 2025.

According to iGaming Business, the investigation must be completed by 17 September 2025, with a focus on measures to make it tougher for illegal sites to operate in Sweden.

Minister for Financial Markets Niklas Wykman stated the importance of the review.

“We will do this by amending the Gambling Act so that it becomes more appropriate,” Wykman said. “This is one of the single most important measures for a safer and healthier gambling market”.

Market Impact and Channelisation Concerns

The regulatory loopholes have created significant market distortions. BOS and monopoly operator ATG suggest real channelisation rates are between 70-80%, substantially lower than Spelinspektionen’s official claim of 86%. The online casino sector faces particular challenges, with channelisation estimated at 72-82%.

“It is completely inadequate that around a quarter of all gambling is unlicensed, not least given the total absence of consumer protection on the black gambling market,” said Gustaf Hoffstedt, Secretary General of BOS.

Original Intent vs Current Reality

The current situation contradicts the original vision for Swedish gambling regulation. The 2019 Gambling License Investigation initially wanted to criminalise all companies lacking Swedish licences that accept Swedish consumers. However, the final legislation watered down this approach, creating the current enforcement challenges.

BOS argues that regulators can only act against operators explicitly using Swedish language or currency, leaving a substantial enforcement gap.

Additional Reform Measures

The investigation has prompted broader regulatory discussions. The government explored comprehensive credit gambling prohibitions in June 2025. Spelinspektionen has also released reports recommending changes to close legal loopholes.

The investigation’s findings, due in September 2025, could result in significant changes to how Sweden tackles unlicensed gambling operators. Industry observers expect the reforms to include stricter language and currency restrictions, enhanced enforcement powers, and clearer criminalisation of unlicensed operations targeting Swedish consumers.

The outcome will be closely watched across Europe, as other jurisdictions grapple with similar challenges in maintaining effective channelisation rates whilst combating sophisticated unlicensed operators who exploit regulatory gaps.