Sweden’s 2019 Gambling Re-Regulation and the End of Svenska Spel’s Monopoly

Sweden’s gambling market shifted from state control to a licensed model on January 1, 2019. This change ended the monopoly held by Svenska Spel and ATG over online betting and casino games. Before this date, foreign operators could not legally serve Swedish players, which created a massive unregulated market where international sites controlled one-quarter of the overall gambling activity. The government introduced new legislation to license these foreign companies and "regain control" of the domestic market. I view this transition as a necessary correction that prioritized player safety over state revenue protection. The reform granted the regulator, Spelinspektionen, the power to compel internet service providers to block unlicensed domains and banks to stop transactions to illegal sites. Any operator found offering services without a license faced fines or prison sentences of up to two years.

From State Control to Licensed Competition

The legislative process began with a draft bill sent to the European Commission for vetting. The standstill period ended in March 2018, allowing Sweden to proceed with accepting applications from July 2018 onward. International gaming operators had to base their servers in Sweden or allow remote access for audits if they held licenses in other approved jurisdictions. Successful applicants paid an 18% tax on all gaming revenue, and their licenses remained valid for up to five years. Age restrictions also tightened, with land-based casinos requiring patrons to be 20 years old, while online services required players to be 18.

I find the financial structure of the new market interesting because it forced a rapid shift in consumer behavior. By 2025, Svenska Spel reported that lottery products accounted for 68% of its total net gaming revenue, generating SEK 5.26 billion. Sports betting and online casino contributed 28%, showing the continued importance of digital verticals. Land-based gaming declined to just 4% of revenue, reflecting structural changes driven by regulatory pressures. The closure of the final Casino Cosmopol venue in Stockholm marked the end of the physical division. The Riksdag voted to shut down the last physical casino in April, citing declining visitor numbers and profitability issues. The law took effect on January 1, 2026, prohibiting new operators from obtaining licenses for physical casinos.

Regulatory Enforcement and Market Health

Spelinspektionen has been active in enforcing the new rules since the re-regulation. In June, the Administrative Court in Linkoping overturned a SEK 100 million fine imposed on Svenska Spel Sport & Casino. The regulator had accused the operator of violating the duty of care in 2021 regarding ten players who incurred significant losses. The court ruled the penalty was disproportionate to the shortcomings identified. This decision highlights the ongoing tension between strict regulation and operational clarity for licensed operators. CEO Fredrik Wastenson called for clearer guidelines, noting that current regulations lack consistency.

The market data reveals a complex picture of compliance and consumption. In Q2 2026, licensed operators reported a combined turnover of SEK 7.4 billion, marking a 5.1% increase compared to the same period in 2025. Online gaming and sports betting generated SEK 4.96 billion, a year-on-year increase of slightly above 7%. Channelisation for online gambling slipped by 1% in 2025 to 84%, down from 86% in 2023. This decline suggests that despite licensing, a portion of the market remains outside the regulated channel. The regulator reported 2,186 active gambling websites without Swedish licenses as of April 30. Influencers remain a prominent factor in promoting these unlicensed services to consumers.

Svenska Spel’s CEO Anna Johnson stated that seven years after re-regulation, the market is far from the goal of a safe gambling environment. She noted that growth occurs almost exclusively within high-risk games such as online casinos, threatening consumer protection. The company proposed stricter gambling limits and a ban on direct marketing to improve the situation. They also recommended risk classifications for different products, insisting that "high-risk" games like slots should face tighter marketing restrictions. These proposals aim to address the vulnerability of young people and women, who are particularly affected by the current market dynamics.

Operational Shifts and Future Directions

The transition to a fully digital landscape accelerated due to the permanent closure of land-based venues. Svenska Spel’s net gaming revenue reached SEK 7.693 billion in 2025, representing a 2% year-on-year increase. Operating profit rose 10% to SEK 2.539 billion, resulting in an operating margin of 33%, which exceeded the company’s long-term target of 30%. The equity ratio stood at 41%, above the target range, and the company proposed a dividend equivalent to 92% of net profit. Investment in technology infrastructure, including cloud migration and data capabilities, supported this scalability within regulated markets.

Player protection tools became central to the licensed experience. Spelpaus.se, the national self-exclusion system, recorded just under 138,000 individuals as self-excluded by the close of Q2 2026. Participation saw a slight decline of 0.7% compared to the previous quarter. In April, Spelinspektionen established new rules standardizing how operators must technically connect to Spelpaus, including unique IDs and tighter verification. The system came under scrutiny after a documentary series alleged a data breach in the register. Operators must now ensure that customers can easily access limit-setting tools and self-exclusion pathways directly from their accounts.

I believe the current framework successfully balances commercial freedom with public health concerns, though challenges persist. The regulator continues to issue fines for breaches, such as the SEK 12 million fine against Videoslots for failing to address excessive gambling issues. Kindred’s subsidiary Spooniker received a SEK 10 million fine for anti-money laundering shortcomings. These actions demonstrate that the authority actively monitors compliance beyond initial licensing. Whether the channelisation rate will recover to pre-2023 levels remains an open question as the market matures. The focus now shifts to ensuring that the remaining unlicensed segments do not undermine the progress made through the 2019 reform.