Industry Support With Reservations
The proposed change has received backing from BOS, the Swedish Trade Association for Online Gambling, which represents licensed operators and suppliers across the market. However, the association has cautioned that enforcement mechanisms alone will not address underlying channelisation problems if Sweden continues to make its licensed market less competitive.
BOS CEO Gustaf Hoffstedt has repeatedly warned that Sweden is falling short of its channelisation objectives, with a substantial portion of gambling spend flowing to unlicensed operators. Hoffstedt has argued that this leakage undermines consumer protection frameworks, as safeguards only apply to players operating within the regulated environment.
“The government’s 2027 change is designed to provide authorities with greater enforcement capability, including against operators that currently circumvent Sweden’s direction test through carefully neutral branding and payment structures,” the association stated.
Competitiveness Concerns Remain Central
BOS maintains that reliance on blocking measures, sanctions, and increased compliance costs will continue to push players toward alternatives that offer better perceived value or products unavailable in the legal market. The trade body has urged lawmakers to consider competitive factors alongside enforcement measures.
Tax policy has emerged as a key friction point. Sweden increased its gambling tax from 18% to 22% in 2024, a move BOS warned could widen the competitive gap between licensed and unlicensed offerings.
Additional tensions have surfaced around proposals to implement differentiated tax rates by product vertical. Horse-betting operator ATG has been associated with calls that would effectively shift tax burden toward online casino while providing relief to racing products. BOS has publicly opposed such proposals, arguing they risk driving price-sensitive players offshore in the vertical where channelisation is already most vulnerable.
Enforcement vs. Market Appeal
The 2027 regulatory change represents a clear intent by Swedish authorities to broaden jurisdictional reach and strengthen tools for combating offshore operators. The amendment will eliminate the need to prove an operator is actively targeting Swedish consumers, replacing it with a simpler geographic test based on where players are located.
However, licensed operators have questioned whether enhanced enforcement without corresponding attention to market competitiveness will achieve desired outcomes. Sweden’s regulated gambling framework was established on the premise that most players would voluntarily choose licensed sites due to their safety, supervision, and accessibility.
Industry representatives have warned that if licensed operators cannot compete effectively on value, product range, and user experience, Sweden may find itself with strengthened enforcement powers on paper but diminished participation in the regulated system those powers were designed to protect.
The Swedish gambling market generated approximately SEK 6.4 billion in tax revenue in 2023. Licensed operators hold permits from the Swedish Gambling Authority (Spelinspektionen), which oversees compliance with consumer protection requirements including deposit limits, self-exclusion programs, and responsible gambling tools.
Source: BOS (Swedish Trade Association for Online Gambling)
