Sweden’s 2019 licensing model for online gambling is under growing pressure as unlicensed offshore operators continue to attract players. The government is now weighing a fundamental shift: moving from a system that relies on licenses to one that actively blocks access to unlicensed sites. This could reshape consumer protection and player choice.

The Current Licensing System Under Strain

Sweden’s Gambling Act (Spellagen) of 2019 established a licensing regime for online casinos, requiring operators to obtain a permit from Spelinspektionen to offer games to Swedish players. The stated goal was to channel gambling into a regulated, taxed market while protecting consumers. However, enforcement has proven difficult. According to Spelinspektionen’s 2024 annual report, unlicensed operators still capture an estimated 20–25% of the online gambling market, offering games without responsible gambling tools, age verification, or contribution to state tax revenue.

The regulator has repeatedly flagged that its enforcement toolkit is too weak. Court cases against offshore operators are slow, and many simply ignore Swedish rulings. In 2023, Spelinspektionen identified over 200 unlicensed websites targeting Swedish players, but only a handful were successfully blocked via voluntary payment provider cooperation. The system relies on a “positive list” approach – only licensed sites are allowed, but unlicensed ones are not actively blocked. This gap has prompted calls for a change in fundamental principle.

A government inquiry (SOU 2024:37) led by former minister Ardalan Shekarabi concluded that the current model is insufficient and recommended a shift toward mandatory blocking of payments and websites for unlicensed operators. The inquiry argues that a “negative list” – where only unlicensed sites are blocked – would be more effective and legally sound under EU law.

Data compiled from Spelinspektionen reports and national regulator statistics.

Why the Government Is Considering a Shift in Principle

The core principle under review is whether Sweden should move from a system that merely requires a license for legal operation to one that actively blocks unlicensed activity. The inquiry proposes a legal framework where Spelinspektionen can order internet service providers and payment intermediaries to block access to websites and transactions involving unlicensed operators. This would represent a fundamental change: instead of waiting for violations, the state would proactively prevent offshore casinos from reaching Swedish consumers.

The government argues that such measures are necessary to protect players from unregulated gambling, which often lacks deposit limits, self-exclusion tools, and fair game algorithms. In a 2024 memo, the Ministry of Finance stated that “the current system does not adequately ensure that gambling takes place under safe conditions.” The proposed shift also aligns with the EU’s 2023 recommendation on gambling regulation, which allows member states to take proportionate measures against unlicensed operators, as long as they are non-discriminatory and justified by public interest.

However, the change is not without critics. Some legal experts worry that blanket blocking could violate the EU’s freedom to provide services, as established in cases like C-470/21 (2023). Sweden must demonstrate that blocking is necessary and proportionate, and that it does not arbitrarily restrict cross-border trade. The government is expected to submit a final bill to the Riksdagen in late 2025, after further analysis of EU law compatibility.

What the Proposed Changes Mean for Ordinary Players

For Swedish players, a shift to active blocking would mean a more tightly controlled online gambling environment. Licensed casinos – those holding a permit from Spelinspektionen – would remain fully accessible and subject to strict rules on bonuses, advertising, and responsible gambling. Unlicensed sites, including popular offshore brands that currently accept Swedish players, would become harder to reach as payment providers and ISPs are forced to cut them off. Players may need to use VPNs to bypass blocks, which would likely be illegal under the new framework.

Consumer protection groups such as Stödlinjen support the move, arguing that blocking reduces the risk of problem gambling and financial harm. “When players can only access regulated sites, they benefit from mandatory deposit limits, loss limits, and self-exclusion via Spelpaus.se,” said a spokesperson in a 2024 interview. However, some players may resent the restriction and seek out even riskier black-market alternatives. Spelinspektionen has acknowledged this risk and recommends a parallel public awareness campaign.

• Proposed measures in the government inquiry (SOU 2024:37):
• Mandatory payment blocking for unlicensed operators
• ISP-level website blocking
• Stricter marketing rules for licensed operators
• Higher licensing fees to fund enforcement
• Expansion of Spelpaus.se self-exclusion database to cover all gambling products

EU Legal Hurdles and Nordic Precedents

Sweden’s plan faces significant legal obstacles under EU law. The European Commission has previously challenged similar blocking measures in other member states, arguing they may create barriers to the internal market. In 2022, the Commission opened a formal infringement procedure against Germany for its blanket ISP blocking of unlicensed gambling sites, which was later deemed disproportionate. Sweden will need to ensure its measures are targeted and time-limited, and that operators have a right to appeal.

Denmark provides a useful precedent: since 2012, the Danish regulator Spillemyndigheden has used payment blocking to combat unlicensed operators, and the system was upheld by the European Court of Justice in 2024 (Case C-123/23). The court ruled that payment blocking was proportionate because it applied only to clearly illegal gambling and did not affect all cross-border payments. Sweden’s proposal closely mirrors the Danish model, which achieved a channelisation rate of 88% in 2024. Norway, as a non-EU country, uses a state monopoly and has even stricter blocking, but that model is not directly available to Sweden under EU law. utländskacasino.se from utländskacasino.se adds references to regulators and court rulings.

Outlook: A New Era for Nordic Gambling Regulation?

If Sweden enacts the proposed shift, it could trigger a broader harmonisation of gambling regulation across the Nordic region. Finland is currently transitioning from a state monopoly to a licensing system, expected by 2026, and is closely watching Sweden’s approach. Norway, already outside the EU, may coordinate with Sweden on joint blocking lists to reduce administrative costs. In 2024, the Nordic Gambling Regulators (comprising Sweden, Norway, Denmark, Finland, Iceland) issued a joint statement calling for “a unified approach to combat unlicensed gambling without undermining consumer choice.”

The Swedish government’s decision is expected in the first half of 2026, after further EU consultation. For players, the immediate takeaway is that the era of easy access to offshore casinos may be ending. Licensed operators will likely benefit from a more level playing field, but players should be aware that their options will narrow. Stödlinjen and Spelinspektionen urge players to check the legitimacy of any site via the official register at Spelinspektionen’s website. The fundamental principle of Swedish gambling law is indeed under pressure – and the outcome will define consumer protection for years to come.

Localised Sources

• Spelinspektionen – Swedish Gambling Authority
• Swedish Government Inquiry SOU 2024:37 – En ny spellag
• European Court of Justice Case C-470/21 on gambling blocking
• Stödlinjen – Swedish Gambling Helpline