Sweden’s gambling market has been through more change in the past five years than in the previous two decades combined. Marcus Eriksson, Senior Content Editor at Casinor.com, has been tracking how Swedish players engage with the market and how tightening rules are reshaping their choices. We sat down with him to get his take on where things stand and where they’re headed.

Gaming Americas: Sweden re-regulated its gambling market back in 2019 with high hopes. How would you describe where things are now?

The re-regulation was genuinely ambitious — the goal was to bring at least 90% of Swedish gambling activity inside the licensed system. In the beginning it worked reasonably well, but the numbers have been slipping. Spelinspektionen reported that channelization fell to 85% in 2024, down from 86% the year before. That gap between where the market is and where the government wants it to be is the central tension right now.

Gaming Americas: What’s driving players outside the licensed system?

A few things. When Spelinspektionen surveyed players who used unlicensed sites, 35% cited better winning opportunities, 21% said they had been blocked through the national self-exclusion register, and 15% pointed to better bonus offers. The licensed market is heavily restricted on bonuses and promotions, and that creates a real opening for offshore operators.

The online casino segment is where this is most visible. Channelization in that vertical is estimated at just 72% to 82%, significantly lower than sports betting. When people talk about Sweden’s channelization problem, they’re really talking about online casino.

Gaming Americas: How has the regulatory environment evolved since 2019?

It’s tightened considerably. The gambling tax was raised from 18% to 22% in mid-2024, and licensing requirements were extended to gaming software suppliers in 2023. Sweden is also looking at a proposed “participation criterion” expected to take effect in January 2027, which would make it illegal for Swedish players to participate in unlicensed gambling regardless of whether the operator is actively targeting Sweden. It’s a meaningful legal shift, and one the industry is watching closely.

Gaming Americas: How do Swedish players respond to these restrictions?

They adapt. When licensed operators can’t offer the bonuses or game variety players want, they go looking elsewhere. On Casinor we cover casinos without Swedish license alongside licensed options, because that’s what players are genuinely searching for. Ignoring that reality doesn’t make it go away.

What we try to do is make sure players understand the trade-offs. A licensed casino comes with deposit limits and regulatory oversight. An unlicensed platform may offer more freedom, but also less protection.

Gaming Americas: The land-based market has also shifted dramatically. How does that factor in?

Casino Cosmopol, Sweden’s last land-based casino chain, closed in 2025 after Svenska Spel decided it was no longer viable. Its closure means virtually all Swedish casino activity is now online. The irony is that land-based revenue was already marginal. In 2024, commercial online gambling and sports betting generated SEK 18.1 billion, while land-based venues brought in just SEK 55 to 66 million per quarter. The weight of the market was already online — Cosmopol’s closure just makes it official.

Gaming Americas: Sweden’s licensed market hit SEK 28.2 billion in 2025. Is the market growing?

Slowly. The 2025 total was up 1.3% on 2024, and Q4 revenue rose 2.6% year-on-year. There’s growth, but it’s incremental. Operators are navigating higher taxes and tighter margins while competing against offshore alternatives that don’t face the same cost base.

Regulators elsewhere have drawn the same conclusion — enforcement against unlicensed offshore operators has become a priority across multiple jurisdictions because licensing frameworks alone don’t fully solve the problem.

Gaming Americas: What regulatory changes do you think will actually move the needle?

The participation criterion is the biggest one. Beyond that, sweeping AML reforms at the EU level are expected to tighten compliance requirements across member states by 2026. The EU’s own Anti-Money Laundering Regulation (EU) 2024/1624 sets the direction clearly — stricter cross-border enforcement, tighter KYC standards, and more scrutiny of payment flows. That could meaningfully close the gap between licensed and unlicensed markets over time.

Gaming Americas: What’s your overall read on where Sweden’s market goes from here?

Sweden has built something real. The self-exclusion system had around 134,500 registered users as of late 2025, and the legal framework has teeth. The question is whether the policy choices around taxation and bonus restrictions are calibrated correctly. If licensed operators cannot compete on their merits, enforcement alone won’t close the channelization gap. That conversation is the most important one in Swedish gambling right now, and the broader AML standards taking shape across the industry will also play a role.