Addressing the Rise of Illegal Gambling in Sweden: A Call to Action

The Swedish Trade Association for Online Gambling (BOS) has made a public announcement via its official website, urging the Ministry of Finance to address a loophole that, in BOS’ perspective, has facilitated the rise of illegal gambling activities within the nation.

In an era when Sweden is grappling with maintaining a robust level of channelization—the measure indicating the proportion of individuals participating in the legal gambling market—counteracting the influence of unauthorized websites has become a crucial focus for industry stakeholders, trade organizations, and inevitably, lawmakers.

Implement Necessary Changes to Strengthen the Regulated Market and Deter Unlicensed Operators

BOS highlights that, currently, there is no legal prohibition against unlicensed entities specifically targeting Swedish players by offering their casino services in the Swedish language and customizing bonuses in the local currency. This loophole emboldens such entities to persist in their operations, leading to what the association describes as a ‘massive influx.’

This situation has arisen because the Government altered the application of the Gambling Act compared to the original proposal presented by the Gambling License Investigation. This investigation formed the foundation for the new Gambling Act and the Swedish re-regulation in 2019. The Gambling License Investigation had initially proposed to criminalize companies without a Swedish gambling license that still cater to Swedish gambling consumers.

Nevertheless, BOS asserts that the Ministry holds the authority to rectify this and make the necessary amendments to align the Gambling License Investigation with its original objectives.

BOS has emphasized that approximately a quarter of all gambling activities currently taking place in the country are unlicensed, leading to significant losses for the industry. Legal operators are compelled to compete against a black market that does not adhere to the same regulations, as is commonly criticized.

Criminalizing Unlicensed Gambling to Suppress the Black Market

However, the government is not passive in this situation. The regulatory framework has been recently revised to penalize suppliers whose games are featured on websites targeting Swedish customers, placing considerable responsibility on companies seeking to operate legally within the country.

BOS Secretary-General Gustaf Hoffstedt has expressed that to effectively diminish a segment of the black market, the nation would need to implement the proposed amendments to the Gambling Act. This would criminalize the actions of unlicensed websites and enforce stricter regulatory measures.