Unlicensed Gambling Continues to Grow in Sweden Ahead of 2026, Despite Tighter Regulations
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Unlicensed Gambling Continues to Grow in Sweden Ahead of 2026, Despite Tighter Regulations
"January 2027 will see the introduction of a new law in Sweden, which targets the location of a player using online gambling services. This will counteract a loophole, which it is believed is facilitating rapidly falling channelisation rates in the country. It will be supported by the Swedish Trade Association for Online Gambling, though warnings have been made about how it will have little impact if overregulation burdens current operators."
"A report from April of last year by the Swedish Gambling Authority looked at 1,100 unlicensed gambling sites. It is estimated that 65% of this traffic was covered by active oversight. It placed unlicensed operators under three categories. These were totally unregulated entities, those regulated in other EU countries, such as Malta, and those regulated elsewhere in the world, such as Curaçao."
"It is unreasonable that such a large proportion of gambling still takes place outside the licensing system. Unlicensed gambling is a breeding ground for money laundering, but above all, Swedish players are without protection from rogue operators. The annual turnover of unlicensed gambling is almost as much as the entire Swedish primary school costs."
Unlicensed online gambling in Sweden is increasing, with many players using operators outside the Swedish licensing system. A Swedish Gambling Authority report examined 1,100 unlicensed sites and estimated that active oversight covered 65% of traffic, categorizing operators as totally unregulated, regulated in other EU countries such as Malta, or regulated elsewhere such as Curaçao. User groups include unaware players, underage gamblers, those on the exclusion list, and players seeking fewer restrictions. Traffic to unlicensed operators remains high. A January 2027 law will target player location to close a loophole; industry support exists alongside warnings that overregulation could push players offshore.
Read at Business Matters
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