Sweden’s gambling market continues to struggle with unlicensed betting, according to a new report from ATG. The findings reveal that a significant share of gambling activity remains outside the licensed framework, highlighting ongoing regulatory challenges.
Despite efforts to channel more betting into the regulated market, the latest data shows that only 69-82% of wagers were placed within Sweden’s licensed system in Q4 2024. This falls well short of the government’s target of 90%, leaving room for unlicensed platforms to thrive.
The report points to a major loophole: many of these unregulated operators rely on the same platform providers as licensed casinos, creating an uneven playing field. Several also offer direct Swedish banking integration, making it easier for players to deposit and withdraw funds despite the lack of proper oversight.
ATG CEO Hasse Lord Skarplöth has called for stronger measures to combat the rise of unlicensed gambling, emphasizing that it poses risks such as money laundering and consumer exploitation. He noted that the revenue generated by unlicensed betting rivals the costs of Sweden’s entire primary school system, underlining the economic scale of the issue.
With Sweden’s regulated gambling industry including everything from sports betting to casino studio online operations, the presence of unauthorized operators threatens the integrity of the market. The report’s findings are particularly concerning for game developers and live dealer providers who operate legally but face competition from unregulated platforms that do not adhere to licensing standards.
Further scrutiny has also been placed on regulatory bodies, with Sweden’s National Audit Office recently criticizing the Swedish Gambling Authority for failing to enforce stricter measures against unlicensed gambling sites. Despite market re-regulation in 2019, the number of visits to unlicensed platforms has increased tenfold, with these sites now generating an estimated SEK 150bn ($14.7bn) annually.
As Sweden’s gambling sector faces increasing challenges, the demand for compliance-driven solutions, such as low-cost live studio setups for regulated operators, continues to grow. With major players like Evolution Games setting the standard in legal online gaming, industry experts are calling for reforms to ensure that regulated operators can compete fairly against illicit platforms.
The debate over unlicensed gambling is expected to continue, with pressure mounting on authorities to close loopholes and prevent further market share losses to unregulated entities. Whether through stricter enforcement or technological advancements in casino studio online operations, Sweden’s gambling industry must find a way to counteract the rise of unlicensed betting.
