Sweden (SE) Online Gambling Market

Market Overview

Sweden re-regulated its online gambling market in January 2019 with the implementation of the Spellagen (Gambling Act). Prior to this, the market operated under a state monopoly for most gambling, while online casino and poker were technically prohibited but widely accessible through international operators.

The 2019 regulation introduced a licensing system allowing private operators to offer online casino, sports betting, and poker legally in Sweden, provided they obtain a license from Spelinspektionen (Swedish Gambling Authority) and comply with strict rules.

Key Market Characteristics

• Population: ~10.5 million
• Internet penetration: >95% (one of the highest in the world)
• Mobile-first: 70-80% of online gambling traffic comes from smartphones
• Payment preferences: BankID, Trustly, and Swish dominate; cards less popular than in other markets
• Language: Swedish (high English proficiency, but local-language content strongly preferred)
• Regulatory climate: Strict advertising rules, mandatory responsible gaming tools, and active enforcement

Regulator: Spelinspektionen

Spelinspektionen is Sweden's gambling regulatory authority, responsible for licensing operators, monitoring compliance, and enforcing responsible gaming standards.

Licensing Requirements

To operate legally in Sweden, operators must hold a license from Spelinspektionen. License types include:

• Online Casino & Poker: Covering slots, table games, live casino, and poker
• Online Sports Betting & Horse Racing: Fixed-odds betting and pari-mutuel wagering
• Online Bingo: Separate category with specific rules

Licensed operators must comply with strict requirements including:

• BankID verification before any deposit or play
• Mandatory deposit limits (players must set limits during registration)
• Connection to Spelpaus.se (national self-exclusion registry)
• Advertising restrictions (no celebrity endorsements, limited bonus promotion)
• Payment method restrictions (certain methods prohibited or restricted)

Enforcement & Penalties

Spelinspektionen actively monitors licensed operators and can impose:

• Warnings: For minor infractions
• Fines: Up to SEK 100 million (~€9-10 million) for serious violations
• License suspension or revocation: For repeated or severe non-compliance

Common violations include inadequate responsible gaming measures, marketing rule breaches, and insufficient KYC procedures.

BankID: Sweden's Electronic ID System

BankID is the cornerstone of Sweden's online gambling verification system. It's a government-backed electronic ID used for banking, government services, and private sector authentication.

How BankID Works for Casinos

1. Player clicks "Register with BankID" on casino site
2. BankID app opens on smartphone (or QR code for desktop users)
3. Player enters BankID PIN code
4. Identity data (name, personnummer, address) is shared with casino
5. Spelpaus.se registry is checked in real-time (blocking self-excluded users)
6. Account created instantly if not self-excluded

Time: 10-60 seconds
Benefits: Instant verification, no document uploads, seamless onboarding

Spelpaus.se: National Self-Exclusion Registry

Spelpaus.se is Sweden's centralized self-exclusion system, managed by Spelinspektionen. Key features:

• Blocking period: Players can self-exclude for 1, 3, 6, or 12 months, or permanently
• Real-time enforcement: Licensed operators check Spelpaus.se during BankID verification; self-excluded users are blocked immediately
• All Swedish-licensed operators: One registration blocks access to all licensed casinos and sportsbooks
• Irrevocable: Cannot be canceled before the selected period ends

Spelpaus.se is widely regarded as one of the most effective self-exclusion systems globally due to BankID integration and mandatory enforcement.

Responsible Gaming Requirements

Sweden's Spellagen imposes strict responsible gaming measures on all licensed operators:

Mandatory Deposit Limits

• Players must set a deposit limit (daily, weekly, or monthly) during registration
• Limits can be lowered immediately
• Limit increases require a 72-hour waiting period (cooling-off period)
• Limits cannot be removed entirely (minimum limit enforcement)

Other Required Tools

• Loss limits: Optional but must be offered
• Session time reminders: Reality checks after extended play
• Self-assessment tools: Questionnaires to identify problem gambling patterns
• Temporary pauses: 24-hour to 30-day cooling-off periods
• Support links: Prominent placement of Stödlinjen (Sweden's gambling helpline) contact info

Advertising Restrictions

Sweden has some of the strictest gambling advertising rules in Europe:

• No bonus-focused advertising: Bonuses cannot be the primary message; must be in separate "offers" section
• Limited celebrity endorsements: Active athletes and celebrities under 25 prohibited from endorsing gambling brands
• No targeting minors: Cannot advertise during children's programming or on platforms primarily used by minors
• Responsible gaming messaging: Must include warnings and links to support resources
• Truth in advertising: Cannot make exaggerated claims about winning probabilities or downplay risks

These rules apply to TV, online, print, and all other media.

Payment Methods in Sweden

Swedish players have strong preferences for local payment methods:

Dominant Methods

• Trustly: Instant bank transfers; most popular deposit and withdrawal method
• Swish: Mobile payment app tied to bank accounts; extremely popular for p2p and e-commerce
• BankID-integrated payments: Some "Pay N Play" casinos use BankID for instant deposit/withdrawal cycles

Less Common

• Credit/Debit Cards: Still used but less preferred than Trustly/Swish
• E-wallets (Skrill/Neteller): Declining popularity due to Trustly convenience
• Bank Transfers: Slow; rarely used for gambling

Payment Restrictions

Sweden restricts certain payment methods for gambling deposits:

• Credit cards: Banned for gambling deposits (since 2020)
• Invoicing services (buy-now-pay-later): Prohibited

These restrictions aim to reduce debt-fueled gambling.

Taxation

Licensed operators pay:

• Gambling tax: 18% of Gross Gaming Revenue (GGR)
• License fee: Annual fee based on operator size

Player winnings are tax-free (no income tax on gambling winnings).

Challenges & Market Dynamics

Channelization (Licensed vs. Unlicensed)

Despite re-regulation, some Swedish players still access unlicensed international operators. Channelization (percentage of gambling done with licensed operators) is estimated at 80-90%, better than many markets but not complete.

Reasons for unlicensed operator use:

• No deposit limits on unlicensed sites
• More generous bonuses (Swedish-licensed operators restricted)
• Game variety (some games/providers unavailable on licensed sites)

Spelinspektionen works with ISPs and payment providers to block unlicensed operators, but enforcement is challenging.

Bonus Restrictions Impact

Sweden's advertising and bonus rules have reduced promotional intensity. While this supports responsible gaming, it also makes Swedish-licensed brands less competitive on bonus value compared to unlicensed competitors.

Brand Examples

Swedish-licensed operators include both international brands and local specialists:

• ComeOn: Multi-vertical brand with strong Nordic presence
• Casinostugan: Swedish-facing brand with local positioning
• LeoVegas: Swedish-founded mobile-first casino (now globally operating)
• Unibet: Established sportsbook and casino brand (part of Kindred Group)
• Mr Green: Long-standing brand with "Green Gaming" responsible gambling tools