To stop gambling on the black market, the government should make the Gambling Act stronger, according to the Swedish Trade Association for Online Gambling (BOS). BOS contends that lower-than-expected channelization rates are a result of legal loopholes that permit unregistered companies to service Swedish gamers without facing repercussions.
BOS has brought attention to a crucial problem with Sweden’s gambling regulations: if unlicensed operators do not speak Swedish or utilize the local currency (SEK), they can nevertheless target Swedish customers. The group claims that this makes it possible for illegal gaming to flourish.
In a letter to the government, BOS stated: “It is [currently] permitted for gambling companies all over the world and their service providers to enable games from Swedish customers as long as it is done in a language other than Swedish and in a currency other than SEK. Most Swedes understand English and understand the value of commonly used foreign currencies, such as the euro.”
BOS is calling for amendments to the Gambling Act to make all unlicensed gambling illegal, including passive acceptance of Swedish players. The association believes this step would provide more effective enforcement tools to block illegal sites.
BOS General Secretary Gustaf Hoffstedt stressed the urgency of these changes, saying: “Not least given the total absence of consumer protection on the black gambling market. If we are to succeed in eliminating this part of the gambling market, the Gambling Act must be amended and all unlicensed gambling must be criminalized.”
Channelisation Rates a Growing Concern
Sweden’s difficulties with channelization, or the percentage of gamblers using licensed sites, are a key factor in BOS’s push. Recent data indicates that the government’s 90% channelization aim is not being met.
The Swedish horseracing monopoly ATG reports that since 2019, traffic to unauthorized sites has increased tenfold. In contrast to Spelinspektionen’s October estimate of 86%, the most recent research put Sweden’s channelization rate between 70% and 82%.
BOS maintains that the ongoing expansion of unlicensed gambling is intolerable, notwithstanding ATG’s observation that rates seem to be stabilizing. Although the group has voiced concerns to both the current and prior administrations, nothing has been done about it.
By closing legal loopholes and criminalizing all unlicensed gambling, BOS believes Sweden can better protect consumers and increase market integrity.
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