Sweden to Expand Crackdown on Illegal Gambling

_{New rules set to take effect in 2027 will force unlicensed operators to either block Swedish players or get licensed. (Image: Ivan Marc Sanchez/Alamy)}

Sweden is preparing a sweeping reform of its gambling laws that will give regulators greater power to shut out unlicensed operators. The proposed changes would close loopholes in the current system and put consumer protection at the centre of Sweden's approach to gambling enforcement.

From Targeting to Accessibility

The Gambling Act of 2018 allowed Swedish authorities to take action against unlicensed gambling sites only if they directly targeted Swedish players. That meant sites had to display content in Swedish or accept transactions in Swedish krona before action could be taken. The system left significant gaps, allowing many offshore operators to continue serving Swedish players while skirting regulation.

A government-commissioned review led by investigator Marcus Isgren has now recommended removing the so-called “directional criterion.” Under his proposal, instead of asking whether a site is aimed at Sweden, the law would apply based on whether people in Sweden can access and participate in the gaming offer. To avoid coverage under the Gambling Act, companies would need to take “appropriate and effective measures to prevent participation from Sweden,” such as geo-blocking.

New Burdens on Operators and Payment Providers

The proposed amendments go further than access rules. They also expand the law’s ban on promoting illegal gambling to include payment providers and other financial services. Anyone facilitating payments for unlicensed gambling would be presumed to be serving Swedish players, unless it is clearly shown that the participant is located abroad. This presumption rule is designed to stop money flows between Swedish consumers and illegal operators.

“The purpose of these legislative amendments is that the expansion of the Gambling Act’s scope of application should have the greatest possible effects, especially when it comes to stopping payment flows between Swedish consumers and illegal gambling,” Isgren’s report states.

The changes would also adjust criminal liability for both illegal gambling and its promotion.

Industry Reaction

The state-controlled operator Svenska Spel has welcomed the proposals. President and CEO Anna Johnson said: “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.”

Johnson added that DNS blocking should be the next step to further strengthen the Swedish licensing market and consumer protection.

Legal Context and Next Steps

Earlier this year, a Swedish court overturned an injunction against the payment provider Zimpler, ruling that the 2018 law’s definition of targeting was too vague. The judgment highlighted the need for clearer rules, which the government review now aims to deliver.

If approved by parliament, the legislative amendments are scheduled to enter into force on 1 January 2027. Observers say they would amount to one of the toughest frameworks for tackling illegal gambling in Europe, with the potential to influence similar reforms in other jurisdictions.