Unlicensed Gambling in Sweden Remains a Challenge
A new ATG report highlights Sweden’s ongoing struggle with unlicensed gambling. A large share of betting still occurs outside the legal framework. The channelling rate in Q4 2024 ranged between 69% and 82%, missing the government’s 90% target. The findings raise concerns about weak enforcement and player risks.
Channelling Rate Falls Short of Expectations
Swedish authorities continue to struggle with steering gambling activity into the licensed market. The channelling rate remains below target, fluctuating between 69% and 82%.
The government aimed for 90%, but current trends suggest this goal is out of reach.
ATG CEO Warns About Player Risks
ATG CEO Hasse Lord Skarplöth criticized the situation, stating:
“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.”
His remarks highlight the financial scale of unlicensed gambling and its risks. Players remain unprotected, and illegal operators continue to thrive.
Regulatory Gaps Allow Unlicensed Operators to Operate
The ATG report reveals serious regulatory flaws. Seventeen of the 20 largest unlicensed gambling sites use the same platform providers as licensed operators.
This practice should not be possible under existing laws. Six platforms also process direct deposits and withdrawals through Swedish banks using BankID.
Additionally, two of the sites appear on the Swedish Gambling Authority’s prohibition list.
National Audit Office Criticizes Weak Oversight
The report follows criticism from Sweden’s National Audit Office. A recent audit found that the Swedish Gambling Authority lacks effective oversight.
The report concluded that the current framework has failed to deliver the promised market control since the 2019 re-regulation.
