Swedish Government set to address gambling act loophole

The Swedish government launched a review of its Gambling Act to tackle the growing presence of unlicensed operators slipping through its legal cracks.

The country has seen a surge in gambling market growth in recent years, with sites like BetMGM expanding into Sweden. Consequently, this has led to more unlicensed overseas gambling operators targeting Swedish players unchecked.

The Swedish Trade Association for Online Gambling (BOS) has been calling for changes to regulations that would otherwise allow offshore operators to bypass license requisites.

Gustaf Hoffstedt, secretary general at BOS, said: “We have advocated for an amendment to the Gambling Act in this regard ever since the reregulation of the Swedish gambling market in 2019.

“It became apparent fairly immediately after the reregulation that the gambling license market was leaking like a sieve. This was partly because many unlicensed gambling companies were able to continue to accept Swedish gambling customers as long as they avoided the Swedish language and the use of Swedish currency.

“The day before yesterday, we reminded the Government of this in a letter, and now we are being listened to. It is very welcome.”

In the past year, Sweden has been making changes in the betting ecosystem, including shutting down non-compliant casinos to better safeguard players. Though critics like BOS say more can be done.

As it stands, unlicensed operators are legally able to offer services to Swedish players as long as they do not use the Swedish language or currency. This loophole has resulted in Swedish consumers visiting these sites, indulging in unregulated gambling using English and euros.

The country has faced criticism over how it regulates its gambling market, with Sweden’s National Audit Office unhappy with gambling regulation, saying it is “not effective enough.”

In response, the government has assigned a state investigator to review the Gambling Act and suggest changes to discourage unlicensed gambling operators. So far, a change to the “directional criterion” has been suggested, which serves to decide if an online gambling service requires a license to operate in Sweden.

The investigator’s findings and proposals are expected to be released on September 17, 2025.

Niklas Wykman, minister of financial markets, said: “We will stop rogue gambling companies that exploit vulnerable consumers. 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.”

Featured image: Jon Flobrant / Unsplash

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