Sweden has long been a nation with a strong gambling culture with horse racing and lotteries being popular for decades. Historically, gambling in Sweden was strictly controlled by the government. The state-run Svenska Spel which was established in 1997, dominated the industry providing lottery, poker and sports betting services. The goal of this monopoly was to minimize gambling addiction and ensure responsible betting practices.

However, in recent years, Sweden has emerged as one of the most dynamic markets for sports betting and online casinos in Europe. The Swedish government introduced the Gambling Act on January 1, 2019 to regulate and liberalize the market. This move was spearheaded by Ardalan Shekarabi, Sweden's Minister for Public Administration, who played a pivotal role in modernizing the country's gambling laws.

The new law allowed private companies to apply for a gambling license. This has ended the state’s monopoly on gambling and opened the market to private casino operators. This has led to a surge in online betting platforms, an increase in gambling revenue and growing interest in offshore casinos.

The Swedish Gambling Authority (Spelinspektionen) was put in charge of licensing and regulation, ensuring that all operators complied with responsible gambling laws, tax regulations and player protection measures. Under this system, licensed operators must pay an 18% tax on gross gaming revenue and implement responsible gambling tools such as Spelpaus (self-exclusion). Spelinspektionen also prevented unlicensed operators from targeting Swedish players. Despite these regulations, a significant portion of Swedish gamblers continue to prefer offshore casinos due to the benefits they offer.

Online Casinos in Sweden

The rise of online casinos in Sweden can be credited to the re-regulation of the industry due to new Gambling Act in 2019. In 2023, the total revenue from the gambling sector reached approximately €2.5 billion, with online gambling accounting for over 60% of this figure. The Swedish online casino market is highly competitive, with over 60 licensed operators vying for a share of the lucrative market. Popular platforms like Betsson and LeoVegas Group dominate the market. For instance, Betsson AB has evolved into a major online gambling entity in Sweden offering casino, poker, bingo, and sports betting services through various brands. In 2023, Betsson reported revenues of €948.2 million, reflecting its significant market presence.

However, the rise of casinos without a Swedish license has also been notable which provide players with alternative options outside the regulated framework. These offshore platforms are licensed by authorities such as the Malta Gaming Authority (MGA) and Curaçao eGaming. These offshore platforms often offer benefits such as higher bonuses and fewer restrictions compared to Swedish-licensed counterparts. Additionally, they may provide more flexible payment options like cryptocurrencies and no Spelpaus requirements. Another benefit of these casinos without a Swedish license is that the winnings from casinos based in the European Economic Area (EEA) are tax-free, making them attractive to Swedish players. These international platforms tend to offer a broader range of games, including exclusive slots, live dealer games and sports betting markets. While the Swedish licensing system ensures a high level of consumer protection, many players are drawn to casinos without a Swedish license due to these above-mentioned unique benefits.

In addition to online casinos, other forms of gambling have also shown positive momentum. The state lottery and slot games reported revenues of SEK 5.72 billion in 2024, a 2.2% increase from the previous year. Non-profit games and national lotteries also saw a 2.6% rise, totalling SEK 3.70 billion. However, land-based casinos faced challenges; notably, the closure of several Casino Cosmopol locations in early 2024 led to a 66.3% revenue decline in that sector, highlighting the industry's shift towards online platforms.

Another key player, LeoVegas, established in 2011, capitalized on the smartphone revolution by adopting a mobile-first approach. Led by Gustaf Hagman, their co-founder and CEO, this strategy propelled LeoVegas’s rapid growth which lead to its initial public offering in 2016. By 2021, LeoVegas had expanded its operations by acquiring Expekt, further solidifying its position in the Nordic market. The regulatory changes have also attracted international attention. In 2024, reports emerged that Cherry AB, a Swedish gaming operator, was considering selling its online casino and sports betting subsidiary, ComeOn, valued at around €500 million.

Sports Betting in Sweden

The rise of sports betting in Sweden has been significantly influenced by the country's passion for various sports, particularly football. Football stands as the most popular sport among Swedish bettors with domestic leagues like Allsvenskan and Superettan attracting substantial wagering activity. Additionally, international competitions such as the English Premier League, UEFA Champions League and Europa League are highly favoured by Swedish punters.

The Swedish sports betting market has seen notable figures contributing to its growth. Erik Bergqvist, a former athlete and entrepreneur, co-founded AB Tipstjänst in 1934 which later evolved into Svenska Spel, the state-owned gambling operator. The establishment of companies like Mr Green in 2007 by Swedish entrepreneurs Fredrik Sidfalk, Henrik Bergquist and Mikael Pawlo has further shaped the online betting landscape. Mr Green was acquired by William Hill for £242m in January 2019. William Hill itself was acquired by Evoke plc for £2.2 billion in July 2022.

Beyond football, several other sports have gained popularity in Sweden's betting scene. Ice hockey commands a significant following with both the domestic Swedish Hockey League (SHL) and the North American NHL drawing considerable betting interest. Handball also enjoys a dedicated fan base, with the Svenska Handbollsligan being the premier domestic league. Golf has a strong presence as well, with Sweden boasting over 450 golf courses and approximately 5% of the population holding club memberships. These sports, alongside football, contribute to a diverse and robust sports betting environment in Sweden.

Future of Sweden’s Gambling industry

Sweden’s gambling industry has undergone a dramatic shift since the implementation of the 2019 Gambling Act, leading to substantial revenue growth and increased competition between domestic and international operators. While the regulated market has provided a safer gambling environment, many players continue to explore casinos without a Swedish license for their flexibility and better rewards. As the industry evolves, balancing regulation with consumer choice will be crucial. Sweden’s online gambling scene is set to remain a key player in the global market through its technological advancements, improved responsible gambling measures and policy reforms. The future of sports betting and online casinos in Sweden looks promising, with continued growth expected in the coming years.