Unlicensed Gambling in Sweden Experiences Traffic Surge

Due to various rules and limitations on gambling in the Scandinavian country, an uptick in illegal gambling in Sweden has been noted recently. Read our article to learn more about what has caused this recent trend and what gaming regulators anticipate in the future, as well as to find where you can bet legally in Sweden now.

In the rest of this article, you’ll find information about Sweden’s gaming regulation as it stands now, as well as its recent history and projected future. You’ll also get insight into the current gambling scene including what types of gambling are legal, how to participate safely on trusted sites, and why there has been an increase in illegal gambling.

If you live in the country, you may want to check out our complete webpage of online gambling sites for Swedish players. Our navigation links below are designed to help you find more information throughout the article quickly. We also have a FAQ at the end to answer any last burning questions.

• The Trouble with Sweden Online Casinos
• Licensed Gambling Sites in Sweden
• The State of Swedish Gambling Laws
• Final Thoughts on Swedish Gambling

The Trouble with Sweden Online Casinos

A report was released recently that indicated the use of unlicensed gambling sites in Sweden has increased 10 times since 2019. Why is this date significant? 2019 was an important moment in the history of Sweden’s gambling regulations because it marked, for the first time, the moment when online operators could apply for licenses to work within the region.

Of course, online gambling had been accessible to some degree before the regulation shift; this is exactly why the country’s lawmakers and the Swedish Gambling Authority were motivated to update the law. The Swedish Gambling Authority had also come under some criticism in the past for being something of a monopoly within the country. Opening up Sweden to licensed online betting, operated by outside companies, would create a more diverse gambling industry.

The hope was that this would suit consumers well, too, giving them a legal option for the online betting they obviously were after. Licenses were granted and several fully authorized, legal services began operating in Sweden. This is why it is so striking that in these five years, illegal gambling has not decreased but rather increased dramatically.

Those working at the Swedish Gambling Authority find the trend “alarming” and have vowed to tackle the issue. However, it is unclear how much more the government can do. Several tactics are already used to curb problematic gambling in the country.

How does Sweden discourage the use of illegal sites?

Sweden has put various regulations in place in order to discourage the use of not licensed gambling sites in its borders. To start, and most obviously, there is the current law. By law, operators should have a license from Sweden to offer their services there. However, it is obvious from this latest news that many firms operate without a license and are not penalized. How can this be?

Some of Sweden’s neighbors in Scandinavia and countries like the Netherlands, have tried battling against online gambling firms by targeting their IP addresses, making it difficult or impossible to access the sites and even punishing web providers that allow users to access them. This technology focused strategy has been effective to a degree, but it is time-consuming to implement and is not always foolproof.

Therefore Sweden has made a different approach by targeting a select group of sites, which it has put on a list of banned sites. It also has made it illegal for any unlicensed site to market its wares to Swedish consumers, and it has made payments to these sites as difficult as possible by getting banks involved. Critics of Sweden’s regulations point out that many of the most beloved sites are not on the ban list currently.

Still, when banks and broadcasters are under threat of fines, results often happen more readily, since these companies need to operate in the good graces of the Swedish government and law.

However, with the proliferation of online ads and alternative e-wallets, unlicensed gambling sites still manage to go rogue in Sweden and skirt the rules, or simply ignore them. This is how it has come to this point. The Swedish Gambling Authority claimed to be shocked by the findings that unlicensed gambling has only increased in recent years, but it also must take responsibility for the system that has brought the situation to this point.

A reported 18 out of 20 sites use the same game providers, including popular developers that provide for legal sites, too. Perhaps it is time to get the operators involved more directly. The Swedish Gambling Authority has to find a more balanced approach in order to educate its population on the availability of regulated sites, to make these sites more appealing and to more strictly enforce regulations against unlicensed parties.

Licensed Gambling Sites in Sweden

You may be wondering at this point why there is so much fuss about licensed versus unlicensed sites. Though many people use unlicensed gambling sites throughout the world, they do pose a threat to user security on multiple levels. For one, these sites have not been vetted by a trusted party; they cannot be fully trusted to give accurate results and to pay out winnings. On the more serious side, some of these operations can be tied to larger money laundering schemes and other illegal activities on a massive scale.

It is much safer for consumers to rely on state-authorized sources for gambling of all types. If money is not paid out on time, the state can go after these licensed sites and get results. They have much less sway when it comes to unlicensed, offshore sites like the many that are popular in Sweden right now.

Thankfully, there are still many licensed gambling sites in Sweden. You can use our vetted database to find safe online gambling sites for Swedish players. These are available to you at all times and should have quality customer service available, too, if you encounter any issues with signing up or playing certain games. Enjoy!

The State of Swedish Gambling Laws

Many types of gambling are available in Sweden at the time of writing. Essentially all major categories of gambling are covered – and pretty much all are regulated by the Swedish Gambling Authority. In Sweden today you can find legal casinos, poker, bingo, betting, sports betting, betting on races, DFS and lotteries.

A small distinction is made within fantasy betting. If a game is determined to be a skills-based game, then it will not be regulated by the Swedish Gambling Authority, since they are only in charge of gambling or luck-based games. In many places, like the US, DFS is considered a skills-based endeavor rather than one based purely on chance.

Social gaming, i.e. gaming without monetary prizes, is also not regulated by the Swedish Gambling Authority. Social games are allowed in Sweden. Likewise, other skills-based competitions, including sports and other types of games, are permitted in Sweden but are overseen by other relevant authorities, including the tax authority in some cases.

Swedish Gambling Laws

There are literally dozens of different laws that all shape the state of regulated gambling in Sweden in some way. Some of the key laws that are in place now are: the Swedish Gambling Act, the Swedish Gambling Tax Act and the Gambling Ordinance. All of these were passed in 2018 and put into effect by 2019, which is the key date we spoke of earlier.

Gambling in Sweden is further regulated thanks to laws like the Swedish Money Laundering Act (2017) and the Swedish Marketing Act (2008). These have a hand in determining how finances of gambling companies are overseen and how these companies may or may not advertise themselves to consumers.

Consumer rights is also a hot topic in Sweden in connection to the current state of gambling. Therefore laws like the Swedish Consumer Services Act from 1985 remain important in how the industry is regulated throughout the region.

Final Thoughts on Swedish Gambling

The Swedish Gambling Authority seems eager to address the issues that have led to the current state of affairs when it comes to unlicensed service providers in the country. The general uptick in use of these services is worrying for those on the regulated side of the industry, but Sweden is not alone in having to find creative and effective solutions to addressing illegal gambling. Hopefully the country will find a suitable balance between education, prevention and freedom for all involved.