Sweden’s Gambling Law (Spellag SFS 2018:1138): A Complete Guide
The Swedish Gambling Act (Spellag), formally known as SFS 2018:1138, was published on June 26, 2018, and became enforceable on January 1, 2019.
This Act marked a major shift in Sweden’s gambling laws by replacing the state monopoly model with a licensing system for commercial operators, opening the market to both domestic and international companies under Swedish oversight.
What Does SFS 2018:1138 Do?
The Swedish Gambling Act created a regulated licensing framework overseen by the Swedish Gambling Authority (Spelinspektionen). Its purpose is to protect players, prevent crime and fraud, and ensure fair competition in the gambling market. Some of the key provisions include:
- Licensing requirement – Any operator offering gambling to players in Sweden must obtain a Swedish license. Unlicensed operators are prohibited from providing services and face penalties if they attempt to target the Swedish market.
- Enforcement powers – Authorities can block payment transactions to unlicensed operators and require ISPs to display warning messages for players attempting to access such sites.
- Player protection measures – Licensed operators must adhere to strict responsible gambling requirements, including deposit limits, mandatory self-exclusion options (via Spelpaus, Sweden’s national self-exclusion register), and restrictions on bonuses.
- New criminal offenses – The law introduced penalties for gambling fraud and created measures to combat match-fixing through coordination between regulators, sports bodies, and law enforcement.
Market Structure Under the Gambling Act
The Act divided Sweden’s gambling market into three main sectors:
Competitive Sector
- Includes online gambling and sports betting.
- Subject to 18% tax on gross gambling revenue (GGR).
State-Controlled Sector
- Covers state-owned casinos and slot machines.
- Managed by Svenska Spel (government-owned operator).
Non-Profit Sector
- Lotteries and bingo run by charities or associations.
- Exempt from gambling taxes.
Additionally, Swedish residents who gamble on unlicensed foreign sites may have their winnings taxed, unlike tax-free winnings from licensed operators.
Impact on Sweden’s Gambling Market
Before 2019, Sweden was repeatedly criticized by the European Union for maintaining a state monopoly that limited competition. The introduction of Spellag addressed these concerns by allowing foreign operators into the market, provided they applied for a Swedish license.
Competition and consumer choice – Svenska Spel, the state operator, now competes directly with licensed international companies offering online casinos, sports betting, and other digital gambling services.
Regulatory compliance – All operators must implement responsible gambling tools, promote safe play, and pay Swedish taxes.
Unlicensed play discouraged – While players are not criminally prosecuted for using unlicensed sites, winnings can be taxed, and unlicensed operators can face bans and payment blocking.
Developments Since 2019
COVID-19 Measures (2020-2021)
Temporary restrictions were introduced, including bonus caps and deposit limits, to prevent risky gambling behavior during the pandemic.
Advertising Restrictions
Stricter guidelines have been introduced over time to curb aggressive gambling advertising.
New Rules In 2023
Sweden expanded requirements to combat match-fixing, increased measures against illegal operators, and boosted the Gambling Authority’s enforcement powers.
2024–2025 Updates
Ongoing debates continue over whether further restrictions on advertising and online casinos should be implemented. Spelinspektionen continues to strengthen supervision, with payment blocking measures against black-market operators being actively enforced.
Licensing Process and Requirements
To operate legally in Sweden, gambling companies must apply for a license from Spelinspektionen (the Swedish Gambling Authority). The licensing process involves:
- Application review – Operators must demonstrate financial stability, transparent ownership, and the ability to uphold responsible gambling requirements.
- Technical standards – Systems must pass IT security audits and maintain safeguards against manipulation, money laundering, and fraud.
- Responsible gambling systems – Operators are required to integrate tools like self-exclusion via Spelpaus, time and deposit limits, and player activity tracking.
- Advertising compliance – Marketing must be moderate, socially responsible, and cannot target minors or vulnerable groups.
Failure to meet these criteria can result in license denial or revocation.
Taxation Under Spellag
- Licensed operators – Pay an 18% tax on Gross Gambling Revenue (GGR).
- Non-profit sector – Lotteries and bingo run by charities are exempt from the gambling tax.
- Unlicensed operators – Cannot pay tax in Sweden, as they are barred from operating. However, players who win on such sites may be subject to Swedish tax on winnings.
- Players on licensed sites – Winnings are tax-free for players, as operators already pay the GGR tax.
Compliance and Enforcement
The Gambling Authority has wide-reaching enforcement powers, including:
- Payment blocking: Banks and financial intermediaries must refuse transactions to unlicensed operators.
- DNS warnings: ISPs can be ordered to display disclaimers when users attempt to access blacklisted sites.
- Penalties: Operators face fines, revocation of license, and, in some cases, criminal liability for violations.
- Advertising fines: Excessive or misleading advertising can result in harsh financial penalties.
Sweden Compared to Other EU Gambling Markets
Stronger player protections – Sweden mandates deposit limits, Spelpaus self-exclusion, and strict bonus rules, exceeding most EU countries.
Higher tax than some neighbors – Sweden’s 18% GGR tax is lower than Denmark’s (20%) but higher than the UK’s (15%).
Strict advertising standards – Unlike Italy, which bans most gambling ads, Sweden allows advertising but under heavily regulated guidelines.
Challenges and Criticisms
Channelization issues – Around 70–75% of Swedish gamblers use licensed sites, below the government target of 90%, indicating continued use of unlicensed operators.
Bonus/casino restrictions – Some critics argue that strict rules may push high-spending players to unlicensed international platforms.
Balancing act – Policymakers must weigh consumer protection against potential market shrinkage if regulations are seen as too restrictive.
FAQs
Do players get punished for gambling on unlicensed websites?
No. Players are not criminally liable. However, they may have to pay Swedish tax on winnings if the site is unlicensed.
Are casino bonuses allowed in Sweden?
Yes, but very limited. Operators may only offer a single welcome bonus per player. Ongoing promotions and loyalty programs are generally prohibited.
What is Spelpaus?
Spelpaus is the national self-exclusion register. Players can block themselves from all licensed gambling operators in Sweden for set periods (1, 3, 6 months, or indefinitely).
Can foreign companies offer gambling in Sweden?
Yes, but only if they apply for and obtain a Swedish license. Unlicensed foreign sites are legally prohibited from targeting Swedish residents.
Are online casinos legal in Sweden?
Yes. Online casinos are legal if operated under a valid Swedish license. These sites must follow strict responsible gambling and consumer protection rules.
How much tax do players pay on their winnings?
Winnings from licensed Swedish operators are tax-free. Winnings from unlicensed foreign operators may be taxable.
Who enforces the Gambling Act?
The Swedish Gambling Authority (Spelinspektionen) supervises, licenses, and enforces compliance. They have powers over payment blocking, fines, advertising controls, and license revocation.
Are loot boxes in video games covered by the law?
Not directly. Swedish regulators continue to review whether loot boxes in gaming fall under gambling regulation, but currently, they are outside the licensing framework.
How does Sweden prevent match-fixing?
The law introduced new criminal offenses, partnerships with sports federations, data sharing, and strengthened monitoring to detect irregular betting patterns.
Conclusion
The Swedish Gambling Act (Spellag – SFS 2018:1138) fundamentally reshaped Sweden’s gambling landscape. It opened the market to licensed international competition, imposed strict consumer protection standards, and gave regulators powerful enforcement tools.
Today, Sweden operates one of Europe’s most tightly regulated and supervised online gambling markets, aiming to balance player safety, state revenue, and market fairness.