Swedish gambling regulation is once again under scrutiny. The latest report released by the Swedish horse betting company ATG points out that a large amount of gambling transactions in the country still bypass the regulatory system, with rampant unlicensed gambling activities severely deviating from the government's target of a "90% channelization rate".
The report shows that by the fourth quarter of 2024, the channelization rate of the Swedish gambling market was only 69%-82%, meaning that up to 30% of bets still flow into unlicensed platforms. ATG CEO Hasse Lord Skarplöth criticized, "Unlicensed gambling not only fosters money laundering but also exposes Swedish players to unregulated risks. Its annual revenue could even support the operating costs of an elementary school."
The report also reveals that among the top 20 active gambling websites in Sweden, 17 use the same technology service provider as licensed platforms—something that should be strictly restricted. Meanwhile, six websites can conduct direct transactions with Swedish bank accounts through BankID, two of which have even been listed on the Swedish Gambling Authority's block list but are still operational.
This report echoes earlier criticism from the Swedish National Audit Office that the gambling regulatory authority is ineffective in enforcement and has not achieved the expected goals since the regulatory reform in 2019. As unlicensed operators continue to erode the market, the industry calls on the government to quickly strengthen technical controls and enforcement to curb the further expansion of the "gray area".
