Sweden targets unlicensed operations with Gambling Act amendment

Summary

The Swedish Ministry of Finance has published Marcus Isgren’s report proposing major changes to the Gambling Act to close a loophole used by unlicensed operators. The core change is replacing the current “directional criterion” with a “participant criterion”: Swedish law would apply whenever Swedish residents can access and play, not only when operators actively target Sweden. The memorandum also seeks to widen prohibitions on promoting unlicensed gambling to include payment processors and other service providers, introduce a presumption rule for payments, and criminalise most unlicensed gambling and its promotion. The measures aim to restore channelisation to at least 90% (the regulator currently estimates channelisation at around 85%). The government will prepare the proposals for referral and parliamentary debate; if approved, the reforms may come into force on 1 January 2027.

Key Points

Proposed shift from a “directional criterion” to a “participant criterion” so the law applies when Swedish residents can play, regardless of operator targeting.
New rules would bar access to unlicensed sites for Swedish players, closing the English-language/euro workaround used by many offshore operators.
Promotion bans would be extended beyond advertisers to payment processors, financial services and other support providers.
A presumption rule would require providers processing payments for unlicensed operators to assume Swedish participation unless proven otherwise.
Unlicensed gambling and the promotion of unlicensed services would be criminalised under adjusted penal provisions.
The reforms are aimed at improving channelisation to licensed operators to at least 90% (current estimate ~85%).
Industry bodies and state operator Svenska Spel back the proposals and have called for measures such as DNS blocking to further curb illegal sites.

Content summary

The investigation finds the existing test — whether an operator is “directed” at Sweden — too easy to evade. Operators have been avoiding Swedish oversight by offering sites in English, pricing in euros and avoiding clear local markers. Isgren recommends applying Swedish law whenever Swedish players can access services, rather than relying on evidence of active targeting.

Beyond access rules, the report proposes broader enforcement levers: making it illegal to promote or facilitate unlicensed gambling (including via payment channels), creating a presumption for payment providers, and tightening criminal provisions. The goal is to safeguard consumers, protect tax revenues and restore confidence in the licensed market.

Context and relevance

This is a significant regulatory move in a market that has struggled with leakage to offshore operators despite a regulated licensing regime. For operators, payment processors, affiliates and compliance teams, the proposals could change commercial and compliance obligations — particularly around customer access, payment flows and marketing. The move also reflects a wider trend in Europe towards stricter enforcement tools (DNS blocking, payment-level controls and criminal sanctions) to defend regulated markets and improve consumer protection.

Why should I read this?

Short and blunt: if you operate in Sweden, work with Swedish customers, handle gambling payments or run affiliate and marketing programmes, this could reshape what you can and can’t do. It’s the change people in the sector have been talking about — and the timeline means you should be planning now, not later.