Sweden’s online gambling market is experiencing worrying growth in its illegal segment. According to recent estimates, a quarter of the country’s gambling activities take place on unauthorised platforms, thereby escaping regulation and depriving the State of substantial revenue. This situation poses a major challenge for the authorities and licensed operators, who are faced with unfair competition.
The role of the BOS in the fight against illegal operators
Faced with this growing threat, the Swedish Online Gaming Association (BOS) has taken a stand. In an official statement, the BOS called on the Ministry of Finance to close a legal loophole that allows unlicensed operators to target Swedish players by offering services in Swedish and bonuses in Swedish krona. Although this practice does not comply with the spirit of the law, it is not explicitly prohibited, which encourages its proliferation.
Gustaf Hoffstedt, Secretary General of the BOS, pointed out:
‘The reason for this is that the Government has changed the application of the Gambling Act from how the proposal was originally presented by the Gambling Licence Inquiry.’
In his view, this change has opened the door to a ‘massive influx’ of illegal operators.
Consequences for the legal market
The increased presence of these unregulated platforms is having a direct impact on the legal market. Authorised operators find themselves competing with sites that do not meet the same obligations in terms of player protection, taxation or responsible gambling. This situation distorts the market and jeopardises efforts to channel players towards legal and secure offers.
What’s more, players who venture onto these illegal sites expose themselves to increased risks, particularly in terms of personal data protection and payment guarantees. The lack of regulation makes it difficult to appeal in the event of a dispute, leaving consumers without effective protection.
Calls for legislative reform
To remedy this situation, the BOS is proposing legislative amendments to explicitly criminalise unlicensed operators targeting the Swedish market. This measure would strengthen the legal tools available to the authorities to combat the black market in online gambling.
Hoffstedt insists on the urgency of such a reform. To eliminate part of the black market, he is convinced that the country must adopt the recommended amendments to the Gaming Act to criminalise the behaviour of unlicensed sites.
Government action in progress
Aware of the scale of the problem, the Swedish government has already taken a number of steps. Recently, the regulatory framework was adjusted to penalise suppliers whose games are offered on sites targeting Swedish consumers without authorisation. This approach aims to make the entire online gambling production and distribution chain more accountable.
However, these measures are deemed insufficient by the BOS, which is calling for more decisive action to stem the rise in illegal gambling. In particular, the organisation is calling for greater cooperation between regulators, financial services providers and legal operators to identify and block unauthorised gambling transactions more effectively.
What are the prospects for the future?
The future of the Swedish gambling market will largely depend on the ability of the authorities to strengthen their regulation and impose effective sanctions on illegal operators. Stricter legislation and rigorous enforcement could significantly reduce the appeal of the black market.
Licensed operators also hope that new measures will restore fair competition and ensure better consumer protection. The debate is now in the hands of the Swedish government, which will have to decide between stricter regulation and freedom of access to online platforms.