In Sweden, a new memorandum has been presented proposing important updates to the rules governing online gambling services, games, and platforms.
The memorandum, Ds 2025:23, was prepared by Marcus Isgren, Chair of the Swedish National Board for Consumer Disputes (Allmänna reklamationsnämnden), at the request of Niklas Wykman, Minister for Financial Markets, who oversees the regulation of gambling in Sweden.
As outlined to ministers, the memorandum proposes changes to the Gambling Act of 2018 (Spellagen 2018:1138), aiming to expand its scope to better combat unlicensed gambling.
The proposed changes would replace the current rule that looks at whether a gambling service is aimed at the Swedish market, with a new rule that focuses on whether people in Sweden are able to take part in the games.
New engagement boundaries
Current legislation is limited, as the Gambling Act applies only to online gambling targeting Swedish consumers. The changes call for a new interpretation, in which enforcement and penalties can be applied to unlicensed services that have been used by a national consumer. The Gambling Act would therefore be enforceable based on “actual participation” rather than its current focus on “intent”.
These changes aim to close legal loopholes that have allowed many unlicensed platforms to operate in grey areas of legislation. Of particular significance, the changes would also bolster enforcement against payment services and other functions offering support to unlicensed gambling operators.
The memorandum sets out a series of legislative changes aimed at strengthening the enforcement of Sweden’s Gambling Act, particularly in the digital space. Central to these proposals is a shift from the current model—which focuses on whether a gambling service is intentionally directed at Swedish consumers—to a new approach based on actual participation. Under this participant-based model, the law would apply to any online gambling service that Swedish consumers are able to access and use, regardless of the operator’s marketing strategy or location.
Enforcement beyond gambling licences
To support this shift, the memorandum also proposes new measures to restrict payment flows between Swedish players and unlicensed gambling operators. This includes an expansion of the current ban on promoting illegal gambling, which would now also cover the provision of payment solutions and other financial or administrative services to such operators. Importantly, this responsibility would apply even if the services in question are not specifically designed for the gambling industry.
A new presumption rule would further strengthen enforcement by requiring that anyone facilitating payments to or from an illegal gambling operator must assume that the user is participating from Sweden if they live in the country. Only if it can be clearly demonstrated that the user is gambling from abroad would this assumption be set aside. This change is designed to make enforcement more efficient and reduce legal uncertainty.
In addition to these regulatory shifts, the memorandum calls for updates to the criminal provisions within the Gambling Act. Offences related to illegal gambling and the promotion of such activity would be clarified and brought into alignment with the participant-based framework. This would give authorities stronger legal grounds to take action against both unlicensed operators and those who enable access to their services.
All proposed changes are scheduled to come into force on January 1, 2027, allowing time for both regulators and industry stakeholders to adjust to the updated legal landscape.
BOS backs changes…
The proposed reforms have also received strong support from within the industry. BOS – the Swedish Trade Association for Online Gambling – has welcomed the memorandum, describing it as a long-overdue step toward closing enforcement gaps in the Swedish gambling framework. In a statement following the release of the inquiry, BOS noted that the new rules would make it illegal for unlicensed gambling companies to passively accept Swedish players. Instead, such companies would be required to take active measures to block access from Swedish consumers.
BOS has consistently called for this shift since the re-regulation of Sweden’s gambling market in 2019 and considers the proposal a major step forward. As stated by Gustaf Hoffstedt, Secretary General of BOS:
“This is an important contribution to the possibility of strengthening the Swedish gambling licence market, which is now proposed to criminalize almost all unlicensed gambling in Sweden.
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 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.”
At the same time, BOS maintains its call for a separate government investigation into the channelisation performance of Sweden’s online casino market. Since the market’s re-regulation in 2019, online casinos have repeatedly fallen short of the government’s stated goal of achieving a 90% channelisation rate—the proportion of gambling that occurs through licensed providers.
A BOS-commissioned survey referenced in the memorandum estimated that online casino channelisation was just 72% in 2023, a level that BOS has previously described as “critically low.” The organisation argues that understanding the reasons behind this underperformance is crucial for developing a regulatory environment that protects consumers while ensuring fair competition within the legal market.
With strong political backing, a clear regulatory roadmap, and support from the country’s key industry body, the proposed changes to the Gambling Act mark a potentially decisive step in Sweden’s ongoing efforts to curb illegal gambling and reinforce the integrity of its licensed market.
