Sweden’s online gambling industry has experienced significant growth over the past decade. This is due to the regulatory changes, rise of cryptocurrency and increasing digital adoption. This Scandinavian nation has long been known for its progressive and forward-thinking approach and this mindset extends to its online gambling industry as well. The important moment in Swedish gambling industry came with the Swedish Gambling Act (2019) which brought the market under stricter control of Spelinspektionen while opening it up to licensed operators. Today, Sweden's online gambling sector is among the most regulated in Europe, generating billions in revenue while ensuring player protection. Sweden's gambling revenue saw a 2.65% rise in 2024, reaching SEK 27.85 billion ($2.58 billion), according to the data from the Swedish Gambling Authority (Spelinspektionen).

Online casinos accounted for the largest share of revenue at 60%, followed by sports betting at 30%, and other forms of gambling making up the remaining 10%. The licensed market has seen a significant increase in player activity, with over 70% of online gambling now coming through licensed operators. However, the unlicensed sector remains a challenge, with an estimated SEK 5 billion (approximately €450 million) in revenue flowing to offshore platforms.

Overview of Swedish Gambling Act (2019)

Before 2019, Sweden's gambling industry was largely monopolized by state-owned operators like ‘Svenska Spel’ and ATG. The new Gambling Act aimed to create a more open and competitive market with new operators. The introduction of the Swedish Gambling Act (SFS 2018:1138), which came into effect on January 1, 2019 allowed private companies to apply for licenses and legally operate in Sweden. This act aimed to channel a higher percentage of gambling activities to licensed operators, ensuring better consumer protection and tax revenue for the government. Under the new law, all operators offering services to Swedish players must obtain a license from Spelinspektionen.

These regulatory changes have present both opportunities and challenges. On the positive side, the market has become more accessible to new casino operators which has increased competition and innovation. This increased competition has resulted in a wider variety of casino platforms, improved user experiences and more attractive promotional offers for the players. Furthermore, the licensing framework has bolstered consumer protection by enforcing strict responsible gambling measures. The licensed operators are required to implement deposit limits and rigorous age verification protocols. This has also generated good tax revenue for the government from the licensed operators. The act also introduced stricter advertising rules, mandatory contributions to research on problem gambling and the implementation of a national self-exclusion program called Spelpaus. This has created a safer gambling environment and reduced the risks of problem gambling.

However, these regulations have also posed challenges for both players and operators. The stringent licensing process required very high fees to obtain it which makes only few big casino operators applying for it. This makes it difficult for smaller companies to enter the Swedish market. Therefore, the larger operators have gained dominance in Sweden’s online gambling market. While this has contributed to financial stability, it has reduced the market diversity and limited competition. This impacts a player’s choice over time.

Betting Without a Swedish License

One of the most debated topics in Sweden’s gambling landscape is the presence of casinos without Spelpaus. Spelpaus is designed to help problem gamblers take a break from betting. However, many Swedish players looking for better offers, game variety, large bonuses actively seek alternative casinos turn to betting without a Swedish license on offshore platforms that are not regulated by Spelinspektionen. These platforms hold licenses from other jurisdictions such as Malta (MGA), UK (UKGC) and/or Curacao. This allows them to operate legally outside the Swedish regulations. These international operators attract Swedish players by offering larger bonuses, fewer wagering restrictions and a wider variety of payment options including cryptocurrencies.

Unlike Swedish-licensed casinos which can only provide a one-time welcome bonus, offshore sites frequently offer new bonuses, cashback promotions and VIP loyalty programs to its loyal players. These options make these foreign casinos appealing to high-stakes players and frequent gamblers. Additionally, many unlicensed casinos support anonymous transactions through e-wallets and cryptocurrencies (like Bitcoin and Ethereum). This adds an additional privacy for users who prefer to keep their gambling activity hidden.

The growing popularity of these offshore platforms suggests that while Sweden’s strict regulations aim to enhance security and responsible gambling, a significant portion of players prefer more flexible gambling environments. According to recent reports, the unlicensed gambling market in Sweden accounts for approximately 30% of the country's total online gambling revenue. The licensed market om Sweden is dominated by a handful of major gambling brands, including Betsson, LeoVegas and Unibet which collectively control a significant share of Sweden’s regulated gambling industry. As the Swedish Gambling Authority continues to tighten restrictions, the challenge remains: how to balance player protection with maintaining an attractive and competitive market that discourages migration to unlicensed alternatives.

Regulation, Compliance, and Market Challenges

Spelinspektionen is responsible for licensing, monitoring and enforcing regulations within Sweden’s gambling sector. Since the introduction of the Gambling Act in 2019, it has issued over 100 licenses, including to major operators like Betsson and LeoVegas. The authority has also cracked down on unlicensed platforms and imposed fines exceeding SEK 100 million ($9.5M USD) in 2023 for violations related to marketing and player protection. There are several types of licenses that an operator can obtain in Sweden like online casino license, Commercial Gambling license, Sports Betting license, Lottery license and Bingo license.

Despite the benefits of regulation, licensed gambling companies in Sweden face several challenges. One major hurdle is strict advertising and bonus restrictions which limit promotions to a one-time welcome bonus, making it harder to compete with offshore platforms that offer ongoing promotions and VIP programs. Additionally, high taxation poses financial challenges for operators, as they must pay 18% gross gaming revenue (GGR) tax, reducing profit margins compared to offshore competitors operating in lower-tax jurisdictions.

Another significant issue is the competition from unlicensed casinos. Despite strict regulations, casinos without Spelpaus continue to attract Swedish players by offering bigger bonuses, fewer restrictions, and anonymous payment methods. These platforms operate outside Sweden’s jurisdiction, making enforcement difficult for Spelinspektionen. Moreover, responsible gambling requirements, while essential for player protection, create operational hurdles for licensed operators. These challenges highlight the ongoing struggle to balance consumer protection, fair competition and market profitability within Sweden’s regulated gambling sector.

Final Thoughts

Sweden’s online gambling market has come a long way since the introduction of the Gambling Act in 2019. The Swedish government continues to refine its gambling regulations, introducing stricter measures to combat illegal gambling while maintaining fair competition in the market. There is speculation about a possible increase in taxation on gambling revenue to generate more state funds which could impact both operators and players by reducing promotional offers and increasing operational costs. Another key focus is the advancement of AI-driven responsible gambling tools which would enhance player protection by identifying problem gambling behaviours in real time. While the regulatory framework has successfully channelled a significant portion of gambling activity to licensed operators, challenges remain, particularly in addressing the unlicensed sector. Despite these regulatory challenges, Sweden's online gambling market remains a lucrative industry with continued growth potential. Striking a balance between consumer protection and market competitiveness will be key to its long-term success.