Sweden to Revise Gambling Law Due to Offshore Operators’ Legal Loophole

The Swedish government has begun revising its gambling law in response to issues with offshore operators exploiting loopholes in the legislation to operate in the Swedish market. Special attention is being given to the case involving the payment provider Zimpler AB, which won a court case related to assisting the promotion of illegal operators. This has led to a decision to amend the laws to prevent further exploitation of such loopholes.

Reasons for Revising the Law

The revision of the gambling law became necessary after it was discovered that offshore companies could legally operate in Sweden as long as they did not target local players directly. This allows them to avoid Swedish regulations and licensing. As a result, such companies continue to attract Swedish players despite their illegal status.

Key Issues Leading to the Revision

• Legality of Offshore Operators: They can operate in Sweden if they do not use the Swedish currency or language, creating loopholes for providing services legally.
• Limited Resources for Regulators: The Swedish regulator, Spelinspektionen, faces challenges in monitoring such operations due to a lack of resources and unclear wording in the legislation.

Discussion of Proposed Changes

One of the main proposals being considered in the review is the amendment of the so-called “targeting criterion” of the law. This criterion determines whether an online gambling operation requires a Swedish license and currently allows some operators to bypass the rules if they do not use the Swedish language and currency.

The Swedish Trade Association for Online Gambling (BOS) has long called for changes to the legislation to prevent bypassing of licensing requirements. According to the organization, these loopholes weaken consumer protection and undermine the integrity of the Swedish gambling market.

Role of the Government Investigation

A special investigation has been appointed to conduct the law review, to be led by Marcus Isgren, Chairman of the Swedish Consumer Complaints Board. His task is to examine how the law can be expanded to effectively exclude unlicensed operators from the market. His findings and recommendations are expected to be presented by September 17, 2025.

Stakeholder Reactions

Expected Outcomes

The changes to the gambling law are aimed at improving consumer protection and strengthening industry regulation. The revision is expected to lead to stricter measures that will help minimize the impact of illegal operators and ensure a more transparent and secure gambling market for all participants.