The Swedish Ministry of Finance has submitted a proposal to change the application of the gambling law with its Gambling Act, which could be amended to close a loophole that allows unlicensed operators to target players in English.
Sweden is preparing for one of the most significant shake-ups in its gambling legislation since the 2019 market re-regulation. The country’s Ministry of Finance unveiled proposals to amend the Gambling Act, aiming to close loopholes that allow unlicensed operators to reach Swedish players. If approved by parliament, the new measures will take effect on January 1, 2027.
At present, Swedish gambling law applies only if an operator is deemed to be "directed" at the market—meaning it uses Swedish language, currency, or local advertising. This has allowed offshore companies to sidestep regulation by offering services in English, with payments processed in euros.
The Ministry now proposes replacing this so-called "directional criterion" with a "participant criterion", under which any site accessible to Swedish players will fall within the scope of the Gambling Act. Offshore operators would be compelled to actively block Swedish residents, or risk being treated as unlicensed and illegal.
Perhaps the most groundbreaking element of the reform is the introduction of a presumption system for payment providers. Under this rule, all transactions to or from gambling sites must be assumed Swedish by default, unless clear evidence proves otherwise. Crucially, the use of a VPN won’t be considered sufficient proof to rebut this presumption.
This approach also criminalises facilitation of unlicensed gambling, extending liability to financial institutions, payment processors, and IT service providers. Sweden will thus become the first European jurisdiction to implement such a comprehensive presumption system in gambling enforcement.
The Swedish government is determined to boost consumer protection and tax revenues. Currently, the nation’s Gambling Authority estimates that channelisation—the share of gambling via licensed operators—sits at around 85%, below the government’s 90% target.
The proposals were also welcomed by a state-owned gambling company, Svenska Spel, which called for further measures such as DNS blocking of illegal sites. They stressed that effective regulation is key to protecting consumers and maintaining public trust in Sweden’s gambling system.
The trade association BOS, long critical of the existing framework, also praised the shift, saying the reforms would criminalise almost all unlicensed gambling in Sweden and expressed hope that the government would swiftly move the proposals through the legislative process.
The amendment package is expected to reshape Sweden’s regulatory landscape, placing far greater responsibility on both operators and payment systems. Critics have argued that the current system has been too easy to exploit, enabling international companies to market services to Swedes without holding a license.
For players, the changes mean fewer opportunities to use offshore sites that bypass Sweden’s consumer protection standards. For companies, it signals heightened risk: failure to exclude Swedish residents could now bring full liability under Swedish law.
The Ministry of Finance’s proposals will now undergo formal referral and parliamentary debate. If enacted, the Gambling Act’s new regime will come into force, as said, on January 1, 2027, marking a decisive step in Sweden’s ongoing battle against unlicensed gambling.
