A new Swedish government inquiry has proposed significant amendments to the Gambling Act (Sw. spellagen (2018:1138)) in order to combat unlicensed gambling more effectively.
Under the current Swedish law, companies that offer gambling services directed at the Swedish market are required to hold a Swedish license. This so-called “directional criterion” has been difficult to apply and has left a grey-zone where companies can accept Swedish players if their services are not considered “directed at Sweden”.
Key proposed amendments
- Removal of the “directional criterion”: The requirement that gambling must be directed at the Swedish market to fall under the act would be abolished.
- Introduction of a “participant criterion”: Online gambling would instead be considered offered in Sweden if persons located in Sweden are able to participate. Operators making their games accessible to such persons would be required to hold a license under the Gambling Act and comply with all related obligations.
- Extended prohibition on promoting gambling: The existing prohibition on promoting unlicensed gambling would be expanded to cover payment service providers and similar intermediaries when they facilitate financial transactions connected to unlicensed gambling.
- Presumption rule for payment intermediaries: A statutory presumption would be introduced whereby individuals who are resident or habitually staying in Sweden are deemed to participate in gambling from Sweden, unless it can be shown that participation took place from abroad. This presumption would apply when assessing whether payment mediation constitutes prohibited promotion.
- Expanded criminal liability: Criminal provisions would be amended so that liability for promoting unlicensed gambling is based on participation from Sweden under the new participant criterion, rather than on whether the gambling was directed at Sweden.
The amendments are proposed to enter into force on 1 January 2027. The proposals will now, as a first step, be considered within the Government Offices (Regeringskansliet) as part of the legislative process.
Click here to read the full inquiry (in Swedish only).
