Can Sweden’s Gambling Act update solve all its channelisation problems?

ByBDG Game
The Swedish government wants to rewrite the rules of online gambling with a radical amendment to its Gambling Act. But tougher laws might not fix a market that is losing its appeal.

Sweden elections

Sweden’s Gambling Act Reform: A Long-Awaited Shift with Real but Limited Impact

For a market long plagued by declining channelisation and regulatory blind spots, the Swedish government’s proposed update to the Gambling Act could mark a turning point — but perhaps not a transformative one.

The reform, which introduces a participation-based enforcement model, is being broadly welcomed by operators, regulators and industry bodies alike. While expectations remain realistic about its potential to solve the deep-rooted challenges in Sweden’s regulated gambling space, the overall tone is cautiously optimistic.

🔍 What’s Changing in Sweden’s Gambling Law?

At the heart of the reform is a shift from the “directional criterion” — where jurisdiction hinged on whether a gambling site targeted Swedish players — to a “participation-based model”, where jurisdiction applies if Swedish users can participate, regardless of language, currency, or branding.

This means:

  • Unlicensed sites in English or other languages, with no overt Swedish targeting, could still fall under Swedish law if accessible to Swedish players.

  • The regulatory net will widen, closing loopholes that previously allowed operators to avoid licensing requirements while still capturing Swedish users.

It’s a legal reframing that industry leaders have pushed for since re-regulation began in 2019 — and one that could finally give the Swedish Gambling Authority (Spelinspektionen) the tools it needs to meaningfully tackle leakage to offshore platforms.

✅ Industry Reaction: A Step in the Right Direction

Anna Johnson, CEO of Svenska Spel, Sweden’s state-owned operator, called the proposals “long-awaited and welcome”, noting their potential to bolster consumer protection and rebuild trust in the licensed market.

Spelinspektionen echoed that sentiment in a statement to BDG Game, welcoming the stronger enforcement capacity the reform would provide.

Gustaf Hoffstedt, CEO of BOS (Swedish Trade Association for Online Gambling), was also positive — if measured:

📉 Channelisation: A Persistently Weak Link

Sweden’s biggest problem isn’t just regulatory: it’s appeal.

While re-regulation briefly lifted channelisation above 90%, BOS now estimates it has slipped to 72%–82% for online casino — levels Hoffstedt bluntly calls “catastrophic.”

By comparison, Denmark — with a more liberal and competitive framework — maintains ~90% channelisation across products.

So, what’s causing the drop? Hoffstedt believes it’s not just about enforcement, but consumer experience:

  • Offshore sites often offer more bonuses, more games, faster payouts

  • Licensed Swedish operators are heavily restricted on incentives and promotions

  • Players simply don’t find the regulated market as attractive

    🗓️ What’s Next?

    The legislative changes, if approved, likely won’t take effect until 1 January 2027, due to the time required to complete the parliamentary process.

    In the meantime, Hoffstedt and BOS are calling for a broader, consumer-focused inquiry into improving overall channelisation — one that looks beyond enforcement and DNS blocking to real market competitiveness.

    🧭 The Bigger Picture

    The Swedish Gambling Act update represents a critical evolution in enforcement strategy — one that addresses years of frustration over unlicensed operators skirting jurisdictional lines.

    But its success will ultimately depend on whether Sweden can also make its regulated market more attractive. As other countries grapple with similar issues — from the UK to the Netherlands — Sweden’s next chapter may become a case study in how to combine enforcement with consumer appeal.

    Until then, the reform is a welcome step. But for Sweden’s legal gambling market to thrive, it will need more than just tighter laws — it needs to win back its players.

    Is There an Appetite for Deeper Reform?

    Despite widespread support for Sweden’s proposed Gambling Act update, questions remain over whether it goes far enough — especially in deterring increasingly sophisticated unlicensed operators.

    Gustaf Hoffstedt, CEO of industry association BOS, warns that illegal sites have become skilled at mimicking legal platforms, misleading even well-meaning players.

     

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