Key points:
- Unlicensed gambling in Sweden remains widespread, with a channelling rate of 69-82% in Q4 2024
- Most unlicensed operators use the same platform providers as licensed sites and many offer Swedish banking integration, indicating regulatory loopholes
- ATG calls for stronger measures to protect players and increase the market share of licensed operators
A new report from ATG highlights the persistent issue of unlicensed gambling in Sweden, showing that a significant portion of the country’s betting activity remains outside the regulated system.
Despite ongoing regulatory efforts, the channelling rate – representing the percentage of bets placed within the licensed gambling framework – was reported to be between 69-82% in the fourth quarter of 2024. This figure falls far short of the Swedish government’s target of 90%.
Commenting on the issue, ATG's CEO Hasse Lord Skarplöth stated: “It is unreasonable that such a large proportion of gambling still takes place outside the licensing system.
“Unlicensed gambling is a breeding ground for money laundering - but above all, Swedish players are without protection from rogue operators.
“The annual turnover of unlicensed gambling is almost as much as the entire Swedish primary school costs.”
Good to know: Since the 2019 re-regulation of Sweden’s gambling market, visits to unlicensed sites have surged tenfold and the unlicensed market now generates an estimated SEK 150bn ($14.7bn) annually
The ATG report sheds light on the operations of these unlicensed platforms, revealing that 17 of the 20 largest sites utilise the same platform providers as licensed operators, which should not be possible under the current regulatory framework.
Furthermore, six of the top 20 sites processed direct deposits and withdrawals via Swedish bank accounts using BankID, while two were flagged on the Swedish Gambling Authority's prohibition list.
These findings come shortly after a National Audit Office report criticised the Swedish Gambling Authority for insufficient oversight, concluding that the current regulatory framework lacks the effectiveness promised during the 2019 market re-regulation.
