Sweden’s Black Market Gambling Exposed

Are you aware that 14% of Swedish gambling still lurks outside the regulated market? A new report from the Swedish Gambling Authority (SGA) unmasks how unlicensed operators capture underage bettors, crypto fans, and players tired of strict local rules. You want a fair, transparent gambling ecosystem. Yet these findings show how anonymity and flexible payment methods feed the black market’s growth. Keep reading to learn how the SGA plans to fight unlicensed gambling, protect vulnerable bettors, and push for radical legal changes.

Sweden’s Shocking 14% Black Market Gambling Exposed: Regulator Demands Urgent Legal Revolution

3 Key Points

1. 14% of Market Still Unlicensed. SGA’s data indicates that unregulated gambling remains significant despite high local channelisation.
2. Flexible Payments Spur Growth. Unlicensed sites accept cryptocurrency, e-wallets, and card payments, hiding transactions from regulators.
3. Proposed Participant-Based Model. Sweden may replace its “targeting criterion” so any gambling within Sweden requires local licensing.

The Swedish Gambling Authority (SGA) has unveiled its latest report on black market online gambling. Although Sweden boasts a channelisation rate of 86%, the report warns that unlicensed operators continue to capture a troubling 14% of the nation’s gambling activity.

The SGA compiled data from around 1,100 unlicensed sites. It found that 65% of that traffic remains under active oversight. However, the remainder still thrives in a regulatory grey area. This includes both providers licensed in other EU countries (like Malta) and third-party jurisdictions, such as Curaçao and Anjouan, plus entirely unregulated entities.

One major concern is how easily Swedish gamblers can deposit and withdraw funds from these illicit platforms. They exploit payment systems like cryptocurrencies, e-wallets, and neobanks. By disguising transaction codes, sites circumvent local blocking measures. In doing so, they entice players with fewer restrictions, higher return-to-player (RTP) rates, and even generous bonuses—tempting gamblers away from the licensed market.

The SGA identifies four main groups who wager illegally. Some do so unintentionally, unaware these sites lack Swedish licences. Others seek fewer betting limitations. A third group is underage gamblers, while another comprises those self-excluded via Spelpaus. The SGA’s data indicates many self-excluded players find ways to continue betting on offshore sites.

Moreover, the report shines a spotlight on skin betting. This practice targets young people by allowing gambling with virtual items. Popular among minors, it frequently appears through influencer-led social media promotions. In 2023, skin betting accounted for almost half of Sweden’s traffic to unlicensed websites. The SGA calls that figure particularly alarming, noting that many sites lack proper age verification.

Currently, Swedish authorities deem gambling unlawful only if it “targets” the local market. But the SGA acknowledges that not all cross-border operations fit neatly into that definition. As a result, many questionable sites remain effectively outside the regulator’s reach. This is why the government has ordered a legal review. It proposes shifting from the “targeting criterion” to a “participant perspective,” making any online gambling within Sweden subject to Swedish licensing. The results of this review should emerge by September.

International cooperation stands at the heart of future enforcement. The SGA highlights the vital role of organizations like the Gaming Regulators European Forum (GREF) and the International Association of Gaming Regulators (IAGR). Collaborative efforts with Malta, Gibraltar, the Netherlands, and the UK also matter, given how operators frequently base themselves in those jurisdictions.

The SGA points to examples like Denmark and the Netherlands, which have introduced DNS blocking and participant-based regulation. These measures appear more effective at curbing unlicensed sites. Sweden, too, could adopt comparable strategies, pending legislative reforms.

Despite the SGA’s best efforts, no single tool suffices to end black market gambling. It says a blend of stricter laws, advanced technological solutions, and continued oversight will be required. Complementary to that, well-executed public information campaigns can raise awareness, especially among younger audiences. Only through a mixture of enforcement, cooperation, and education can Sweden further reduce unregulated activity.

The SGA’s newly released findings highlight the persistent challenges of unregulated online gambling. With nearly 14% of bets flowing outside the system, Swedish authorities are contemplating a “participant-based” approach. They say stronger laws, combined with global partnerships and thorough consumer outreach, offer a path to safeguarding players. Until then, the black market’s accessibility and appealing features remain a significant concern in Sweden’s gaming landscape.