Online Gambling Law in Sweden

Updated: 2025

Sweden's current gaming laws give a state-owned monopoly all the gambling power. But change is afoot, mainly because the European Commission has for some time been putting intense pressure on Sweden and other nations to open their gaming industries to competition from foreign operators. In fact, the threat of EU sanctions has already persuaded Swedish lawmakers to get serious about reforming the current system.

Currently, all forms of gambling in Sweden are controlled by Svenska Spel. This control extends to both the physical and online gambling businesses. The only legal and licensed gaming site in Sweden is run by Svenska Spel, but gamblers have no obligation to limit themselves to that one option.

Many other countries have similar laws to Sweden regarding the business of gambling. They tightly regulate gambling operators and expose them to rigorous court and business license supervision. But there’s no such supervision for the player. There’s not even a law forbidding the player from partaking in online gambling. Why should there be? It’s perfectly legal.

Svenska Spel might enjoy a monopoly in the realm of online gambling, but that same company is subject to extremely stringent regulations that make it hard to compete with foreign providers. For instance, online poker at Svenska Spel is limited to Swedes, which narrows the player pool something fierce. Many gamblers in Sweden appear to prefer the unlicensed operators for the simple reason that they offer a larger player pool, better sports betting odds, and far more in the way of casino games.

These gaming sites may not be licensed in Sweden, but they hold licenses in other highly regarded places. They are situated in locations where online gambling is legal and well-regulated, and they argue that they have no obligation to follow the laws of other nations—especially when those laws amount to a clear violation of EU trade agreements.

Gaming Legislation in Sweden

Currently, two important pieces of legislation govern online gambling in Sweden. Here’s a brief overview of each.

The 1994 Lotteries Act

The Lotteries Act governs the operation of gambling in Sweden, but it is more specific than that. It regulates not only lotteries (which it defines very broadly) but also kinds of gambling that would, if we were to be very general about it, classify as games of chance. These would be guessing games for money, bingo, gaming machines, roulette, dice games, and card games. The Act gives the Gaming Board in Sweden full authority to grant licenses and enforce proper conduct.

This law applies to all forms of gaming, but its main purpose is to bring all gaming activities into public view and under public control. It mainly affects gaming operators who are not public authorities. Public authorities may offer public gaming, as may certain authorities in charge of horse racing. The main operators of lotteries and similar games must be public authorities.

Moreover, it is made illegal to publicize unlawful or foreign lotteries. The Lotteries Act aims to keep the games it regulates clean from criminal influence and safe for the public.

The 1999 Casinos Act

The 1999 Casinos Act regulates more than just the roulette, dice, card, and similar games offered in a gaming establishment. It also regulates the establishment; that is, the land-based casino where these games are played. You will find age limits, for instance. You will also find a prohibition against issuing credit to gamblers; rules for keeping records; and a number of other regulations that cover the operation of a gambling establishment.

2002 Amendment

In 2002, an amendment was added to the Lotteries Act to update the legislation for online gaming. It gave Svenska Spel the authority to host online games and act as the sole licensed provider of internet betting in Sweden.

Sweden vs. the EU

For a long time, the EU has been after Sweden for breaking international trade agreements, and for a long time, Sweden has been saying just as frequently that it has every intention of opening the market to foreign competition and also allowing operators to offer their services to Swedes. The EU has stated numerous times that Sweden's government monopoly on gambling is a violation.

In recent years, the situation has grown more serious, with the EU threatening international sanctions on Sweden. This has pushed the government to take the directives seriously and investigate opening the market to competition. The latest we hear is that Sweden plans to have legislation passed by the end of 2014.

Yet, the past of the Swedish government shows a scenario where it says, “changes are imminent,” yet, it does not deliver those changes. This is important because the changes, it is said, are to affect an industry that is very profitable for Sweden—a gambling industry that the government does not want to open to competition.

We hold that Sweden will probably enact this legislation sooner or later. We face no penalties for punting to sites that aren't licensed, so it's already effectively a competitive market. Sweden could easily ease the regulations it imposes on its one licensed operator to make it more competitive, let along the foreign operators that are already in our market, are paying licensing fees, and are paying taxes.