A recent report from ATG underscores Sweden’s ongoing battle against unlicensed gambling, with a significant portion of betting activity still occurring outside the regulated market. Despite efforts to enforce stricter controls, the channelling rate for Q4 2024 remained between 69% and 82%, falling short of the government’s 90% target. The findings raise serious concerns about regulatory effectiveness and player safety.
Licensed Market Fails to Reach Expected Compliance
Swedish authorities continue to face difficulties in directing gambling activity toward licensed operators. The intended 90% channelling rate remains out of reach, with figures consistently falling short of expectations. This trend signals ongoing challenges in regulating the industry and ensuring compliance with national gambling laws.
ATG CEO Sounds the Alarm on Player Protection
ATG CEO Hasse Lord Skarplöth voiced strong concerns over the persistent presence of unlicensed gambling, 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 immense financial scale of unregulated gambling and its associated risks, with Swedish players left exposed to illicit operators.
Loopholes in Regulation Enable Unlicensed Operators
The ATG report exposes critical gaps in Sweden’s regulatory framework. Seventeen of the 20 largest unlicensed gambling sites reportedly use the same platform providers as licensed operators, a practice that should not be possible under existing laws.
Additionally, six platform providers facilitate direct transactions with Swedish banks via BankID, further undermining enforcement efforts. Notably, two of these unlicensed sites are already on the Swedish Gambling Authority’s prohibition list, yet they continue to operate.
National Audit Office Highlights Weak Market Oversight
The report aligns with recent findings from Sweden’s National Audit Office, which has criticized the Swedish Gambling Authority’s inability to exercise effective oversight. A recent audit concluded that the regulatory framework introduced in 2019 has failed to deliver the intended market control, raising questions about the effectiveness of current enforcement measures.
As Sweden grapples with these challenges, calls for stricter regulatory action and enhanced enforcement mechanisms continue to grow.
