Key Moments:
- Sweden will enforce a new rule from January 1, 2027, focusing on player location rather than targeting criteria.
- BOS, representing licensed operators, supports the change but warns that broader issues threaten market competitiveness.
- A 2024 tax hike from 18% to 22% has raised concerns that players may shift to unlicensed gambling sites.
Regulatory Shift Set for 2027
Sweden is revamping its approach to unlicensed online gambling enforcement. Starting January 1, 2027, authorities will focus on where the player is located, instead of whether the operator “targets” Swedish users. This change aims to curb offshore platforms that Swedish residents access, even when those sites avoid Swedish language or SEK pricing.
Licensed Operators Highlight Channelisation Challenges
The Swedish Trade Association for Online Gambling (BOS), which represents licensed operators, supports the update. However, BOS warns that changing the rules alone will not solve deeper challenges. CEO Gustaf Hoffstedt notes that the channelisation rate—the share of gambling through licensed operators—is below government targets. He adds that significant leakage to unlicensed operators undermines consumer protections, which apply only in the regulated market.
Moreover, some offshore operators have bypassed enforcement by using generic branding and neutral payment methods. The new rules aim to close this loophole and strengthen regulatory oversight.
Market Competitiveness Remains a Concern
BOS cautions that enforcement alone may not stop players from choosing alternative sites offering better value or preferred products. The association urges lawmakers to address competitive disadvantages facing licensed operators. They argue that blocks, bans, and high operating costs are insufficient solutions.
Tax Increase and Product-Specific Debate
In 2024, Sweden raised its gambling tax from 18% to 22%. BOS has warned that higher costs for licensed operators could widen the gap with unlicensed platforms. Discussions are ongoing about product-specific tax rates. For example, horse-betting firm ATG proposes lower taxes on racing but higher rates for online casino operations. BOS opposes this, saying price-sensitive players may leave licensed online casinos, where the channelisation rate is already fragile.
| Key Regulatory Moves | Details |
|---|---|
| 2027 Enforcement Rule | Focus on player location, effective January 1, 2027 |
| 2024 Tax Increase | Gambling tax raised from 18% to 22% |
| Product-Specific Tax Debate | Proposals to split tax burden remain contentious |
Industry Outlook: Balancing Enforcement and Attractiveness
As Sweden strengthens enforcement tools, questions remain about market appeal. The regulated sector originally aimed for most players to choose licensed sites voluntarily. Operators warn that if licensed platforms do not stay competitive in value, visibility, and offerings, stricter rules could reduce participation instead of increasing it.
- Author
Daniel Williams
