Unlicensed Gambling Surges in Sweden as Regulators Struggle to Contain Market Violations

Unlicensed online gambling is becoming increasingly popular in Sweden, with a significant rise in players turning to unregulated platforms. A report from Swedish publication ATG reveals that the traffic on unlicensed gambling sites has grown tenfold in the fourth quarter of 2024 compared to 2019.

This rise is particularly notable in the context of online casinos, where channelization rates remain low—between 59% and 74%, compared to higher rates for sports betting, which range from 79% to 88%. The increase in unlicensed gambling poses a significant challenge to Sweden’s regulated gambling market.

Unlicensed Gambling Sites Violate Regulations, Use Shared Platforms and Attract Significant Traffic

ATG’s investigation found that many unlicensed gambling sites operate using the same platform providers as licensed operators, which is a violation of Swedish regulations. Notably, 17 of the 20 largest unlicensed sites are utilizing these shared platforms. Furthermore, six of these unlicensed websites were found to allow Swedish players to make direct deposits and withdrawals via BankID, a widely used digital identification system in Sweden. This further complicates the regulation of the market and enables easy access for Swedish players to these unlicensed platforms.

Among the unlicensed gambling websites, Luckyjungle.com attracted the most traffic in the fourth quarter of 2024, with 147,284 visits. Despite being a relatively new player in the market, having entered just over a year prior, it quickly became the most visited site. Other notable unlicensed platforms include Unlimitcasino.com, which garnered 113,002 visits, and Refuelcasino.com, with 94,456 visits. These sites have successfully captured a large share of the Swedish online gambling market, further undermining the effectiveness of the regulated market.

Officials Criticize Sweden’s Regulatory Failures as Unlicensed Gambling Flourishes, Vulnerable Players Exposed

The rise of unlicensed gambling in Sweden has drawn criticism from various officials, including ATG’s CEO Hasse Lord Skarplöth. He expressed concern over the fact that such a significant portion of gambling activity is taking place outside the licensing system. Skarplöth emphasized that unlicensed gambling creates an environment conducive to money laundering and leaves Swedish players vulnerable to exploitation by unscrupulous operators. The financial scale of unlicensed gambling in Sweden is alarming, with its annual turnover approaching the total cost of the Swedish elementary school system.

Sweden’s regulatory system has struggled to cope with the rise of unlicensed gambling. In October 2024, the National Audit Office (NAO) published a report criticizing the Swedish Gambling Authority for failing to meet the expectations set by the Riksdag and Government during the re-regulation of the gambling market. The NAO noted that the Gambling Authority had conducted insufficient inspections and selected supervisors without thorough risk analysis. This lack of effective oversight is seen as a key factor contributing to the growth of unlicensed gambling sites in Sweden.