Industry welcomes landmark gambling law proposal in Sweden
Swedish gambling bodies have given a strong endorsement to government proposals to expand the criminalisation of unlicensed gambling, describing the measures as a decisive step to close loopholes that have allowed offshore companies to target local consumers.
The plan, unveiled this week in a report submitted to the Ministry of Finance, would replace the so-called “direction criterion” with a new “participation criterion”. Under the change, the law would apply whenever Swedish consumers take part in a game, regardless of language, currency or marketing.
Industry representatives said the proposals could finally address the scale of the unlicensed market, where, according to ATG, up to one in four bets in Sweden are placed outside the regulated system.
ATG: “No excuses left”
Swedish horse-racing and sports betting operator ATG, which has long campaigned for tighter restrictions, said the proposals matched many of its demands.
“Yesterday, Marcus Isgren presented his inquiry into the scope of the Gambling Act. The purpose was to test whether the current direction criterion can be replaced by an offering criterion – that is, that the law applies when gambling is actually offered to Swedish consumers, regardless of language, currency or marketing,” ATG said in a statement.
Chief executive Hans Lord Skarplöth said the shift was overdue: “It sounds technical. But in practice, it is about something simple: would we accept that unlicensed gambling companies could run rampant on the Swedish market, or would we put a stop to it? The investigation shows that it is fully possible to even introduce a participation criterion. Then there are no excuses left.”
ATG has repeatedly argued that the current legal test, which determines whether operators are directing their products to Swedish consumers, for instance, by publishing content in Swedish or using Swedish currency, is inadequate, since companies could avoid falling under Swedish jurisdiction by making only superficial changes to their sites. “We have long pointed out that today’s system is insufficient. We fought early for the direction criterion to be replaced by an offering criterion. We have demanded that the law must be based on reality, not on cosmetic details in language or marketing. We are so happy that we have been heard,” Skarplöth said.
The company also welcomed proposals to place obligations on payment providers. “We were also early to highlight another crucial point: it should be impossible for payment intermediaries to transmit money to unlicensed gambling sites. Here too we have been heard,” Skarplöth added.
He said the introduction of a presumption rule, which requires payment companies to assume that Swedish residents are gambling from Sweden unless proven otherwise, could be decisive: “When banks and payment companies, according to the investigator, can no longer turn a blind eye to the problem, but are forced to stop transactions to unlicensed operators, then the game is over. Banks are usually careful with their NYC strategy – now they must show the same zeal here.”
Svenska Spel: call for further measures
State-owned Svenska Spel also expressed strong support for the proposals, describing them as a milestone for consumer protection and market integrity.
“The investigator’s proposals are long-awaited and welcome. We have long pointed out that the regulations regarding illegal gambling need to be tightened. It is about improved protection for consumers, but also about safeguarding confidence in the entire Swedish gambling market. That gaming is conducted in a responsible and sustainable manner is the very foundation of our business,” said Anna Johnson, President and CEO of Svenska Spel.
She added that additional steps would still be necessary: “It is absolutely necessary to continue with more measures to counteract illegal gambling. DNS blocking of illegal gambling sites is a natural next step to move forward with. This would further strengthen the Swedish licensing market as well as the protection of Swedish consumers.”
A long-sought reform
The Swedish Trade Association for Online Gambling (BOS), which represents licensed operators in the country, said it had been pushing for such reforms since the market was re-regulated in 2019.
“This is an important contribution to the possibility of strengthening the Swedish gambling license market, which is now proposed to criminalise almost all unlicensed gambling in Sweden,” said BOS Secretary General Gustaf Hoffstedt.
He added: “I foresee the government shortly submitting a bill to the Riksdag in accordance with the investigation’s proposal. Good job, Mr. Investigator, and with the hope of an 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.”
BOS argues that the introduction of a participation criterion would prevent operators without a Swedish licence from passively accepting local players. Instead, such companies would be legally required to take active steps to exclude them.
The proposals also include new criminal liability rules targeting promoters of unlicensed gambling, alongside obligations on payment intermediaries to block financial transfers to and from unlicensed sites.
Race against time
Although the legislation is not scheduled to take effect until January 2027, ATG insisted the timeline is still pressing, given the size of the unlicensed market.
“It may seem quick for a legislative process, but it is a long time frame for us who fight against the unlicensed gambling companies,” Skarplöth warned. “As long as the loopholes remain, up to every fourth bet in Sweden continues to take place with unlicensed companies. That means players without protection, increased risk of addiction, and billions lost in tax revenue. It means we have a parallel shadow system that undermines both the state’s intentions and the companies that take responsibility and follow the law.”
Skarplöth described the inquiry as a “clear signal” that Sweden is prepared to strengthen its regulatory regime. “Harsh words it may seem, but I also want to extend a big thank you to Marcus Isgren and his inquiry. It shows clearly that the tools we have long demanded can actually be introduced – and that there is a way forward for a stronger, more consistent gambling law. That the proposals are now on the table is an important step in the right direction.”
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