Sweden struggles to curb unlicensed online gambling, new report suggests

The Swedish Gambling Authority (Spelinspektionen) has released a new report showcasing the extent of online gambling outside Sweden’s licensed market.

Titled “Online Gambling outside the Licensed Market,” the report reveals the extent to which unlicensed gambling continues to operate and attract Swedish players, despite regulatory efforts.

Gambling still taking place outside licensed system in Sweden

The report states that about 14% of all online gambling in Sweden in 2023 happened outside the official, licensed system. In other words, 86% of gambling stayed within the regulated market, but that still leaves roughly one in seven players going to unlicensed sites. This means a lot of gambling is happening without the protections and rules that are meant to keep things fair and safe for consumers.

Spelinspektionen har tagit fram en lägesbild om onlinespel som sker utanför den licensierade marknaden i Sverige. https://t.co/0dzc6deAzs

— Spelinspektionen (@lagligtspel) April 9, 2025

Most unlicensed gambling by Swedes occurs on sites not targeting Sweden. Only 6% of traffic went to sites with prohibition orders, though more may be illegal under Swedish law.

The research also suggests why some Swedish players are turning to unlicensed gambling sites. For starters, licensed platforms have strict rules when it comes to things like bonuses and advertising.

Then there’s Spelpaus.se, the self-exclusion tool that’s meant to help people take a break from gambling, but some players actively try to get around it so they can keep playing. Unlicensed sites tend to lure people in with flashier bonuses, a bigger variety of games, and what many believe are better chances of winning. The option to use cryptocurrencies is also a big draw for those who want to stay anonymous.

The review also points out the aggressive and often sophisticated marketing tactics used by unlicensed gambling operators to reach Swedish players. These include affiliate marketing strategies that direct users to offshore gambling sites, as well as targeted advertising made possible through the use of cookies and online tracking tools. Some operators also engage in direct outreach, sending anonymous promotional messages via text or email to entice players to visit and use their platforms.

Loopholes in online gambling law causing concern

The authority claims that current laws just aren’t cutting it when it comes to dealing with unlicensed gambling, especially when the operators are based outside Sweden. It is calling for better international cooperation and some updates to the Gambling Act to make it clearer and give authorities more power to enforce the rules.

Director General Camilla Rosenberg has welcomed the government’s ongoing review of the Gambling Act, which is set to wrap up by September 17, 2025.

In a statement (translated into English), Rosenberg said: “Despite the challenges with the current scope, we believe that our interventions, where possible, are important and have an impact. That’s why it’s crucial that we continue our efforts to combat illegal gambling even while the regulatory framework is under review.”

The report comes as the Swedish National Audit Office recently criticized Spelinspektionen, saying its oversight hasn’t quite lived up to the expectations set when the market was re-regulated back in 2019.

In response, the government has taken the concerns seriously and brought in an expert to help take a closer look at how the law might need to change.

Featured image: Canva

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