Sweden Considers New Rules for Offshore Gambling Operators

he Ministry of Finance in Sweden has published a long-awaited review of the Gambling Act, setting out proposed changes that could reshape how the country handles unlicensed operators. Investigator Marcus Isgren delivered the report on Wednesday, laying out measures to strengthen regulation and protect players in Sweden.

Good to Know

• The report recommends replacing the current “directional criterion” with a new “participant criterion.”
• Financial services and payment providers would face tighter restrictions.
• The Gambling Authority estimates legal channelisation at 85%, below the 90% target.

At present, Swedish law applies only when online gambling is considered directed at the local market. That standard has enabled offshore companies to avoid oversight by offering websites in English, accepting euros, and avoiding obvious Swedish branding.

The proposal would replace that with a “participant criterion.” Under this model, the law would apply whenever residents of Sweden can access and play, regardless of how the operator designs its service.

The recommendations go beyond the gambling companies themselves. Payment processors and financial institutions that support unlicensed operators would fall under the framework. A presumption rule would apply, requiring providers to assume Swedish participation if they process payments for unlicensed sites, unless they can prove otherwise.

The memorandum also seeks to broaden the ban on promoting illegal gambling, expanding it to include services that enable or support unlicensed play.

Criminal Provisions and Enforcement

Proposed changes include stronger criminal provisions. Both unlicensed gambling and the promotion of such services would become explicitly illegal and open to prosecution.

The purpose is clear: protect consumers while ensuring that gambling-related taxes remain within Sweden.

The Gambling Authority has set a goal for at least 90% of gambling to occur through licensed operators. Current figures suggest channelisation is only 85%, a drop from 86% the previous year. Officials believe the proposed reforms will close the gap by removing loopholes and strengthening enforcement.

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