Sweden’s regulated gambling market generated SEK 28.2 bn (€2.5 bn) in gross gaming revenue in 2025, according to the latest annual report published by the Swedish Gambling Authority (Spelinspektionen). The regulator’s findings indicate continued growth driven primarily by online gambling, even as authorities highlight persistent challenges related to offshore competition and channelisation rates, which may hinder the effectiveness of the regulated market in achieving its intended goals.
The report forms part of the regulator’s annual assessment of Sweden’s gambling market following the country’s 2019 licensing reform, which introduced a regulated framework for private operators alongside state-controlled gambling products.
Key Market Signals From Sweden’s Gambling Authority
Spelinspektionen’s annual report provides a broader view of how Sweden’s gambling market is evolving several years after the country introduced its licensing framework. The regulator highlights continued revenue stability across the sector, with digital gambling maintaining a dominant position in the market. At the same time, the authority notes that maintaining strong channelisation levels remains a central regulatory priority as offshore operators continue to attract a share of Swedish players.
The report also indicates that regulatory oversight has become increasingly important as the market matures. Supervision, enforcement actions and ongoing policy adjustments are now key tools used by the regulator to maintain control over the licensed ecosystem and ensure consumer protection standards are upheld.
Strategic implications for operators and policymakers:
- Total regulated revenue: Sweden’s licensed gambling market generated SEK28.2bn (€2.5bn), reflecting moderate year-on-year growth across regulated gambling products.
- Online gambling remains dominant: Commercial online gambling, including online casinos and sports betting, continues to account for the largest share of market activity within the licensed system.
- Channelisation below policy target: The regulator estimates that 85% of gambling activity occurred with licensed operators in 2024, below the government’s long-term objective of 90%.
- Offshore activity concentrated in online casinos: Digital casino products remain the segment most affected by unlicensed competition.
- High participation in licensed gambling: Around 96% of surveyed Swedish players reported gambling with licensed operators at least once during the year.
- Regulatory oversight intensifies: The authority continues expanding supervisory efforts and enforcement actions to address illegal gambling and strengthen market integrity.
These signals illustrate the dual reality of Sweden’s gambling market: a stable and mature regulated sector supported by strong consumer participation, but one that still faces structural pressure from offshore operators operating outside the national licensing framework.
Offshore Competition Remains A Core Regulatory Concern
Despite the market’s overall growth, Spelinspektionen notes that a portion of gambling activity continues to take place outside the country’s licensing framework.
According to the authority’s estimates, the channelisation rate for Sweden’s competitive gambling market fell to 85% in 2024, down slightly from 86% in 2023. The Swedish government has repeatedly stated that maintaining a channelisation level above 90% is essential for ensuring effective consumer protection and regulatory oversight.
The regulator’s analysis suggests that offshore play is most prominent in the online casino segment, where channelisation is estimated to fall between 72% and 82%, significantly lower than sports betting verticals.
Survey responses included in the regulator’s analysis also provide insight into why some players use unlicensed platforms. Among respondents who reported gambling outside the licensed market:
- 23% cited better winning opportunities
- 21% said they had previously self-excluded through Sweden’s Spelpaus system
- 15% pointed to better bonuses or promotional offers
The regulator noted that although only a minority of players use offshore platforms, those who do often gamble larger amounts, meaning unlicensed operators capture a disproportionately high share of total gambling expenditure.
These challenges have prompted Swedish authorities to intensify enforcement actions against offshore operators targeting domestic players. A recent regulatory development includes stronger enforcement powers aimed at restricting companies operating without Swedish licences, part of broader efforts to limit illegal gambling activity in the market.
Enforcement And Regulatory Oversight Continue To Expand
Spelinspektionen’s annual report also highlights the regulator’s growing role in market supervision and compliance enforcement.
The authority is responsible for licensing operators, supervising gambling activity, conducting investigations and issuing sanctions against companies that breach Swedish gambling regulations. In recent years, supervision efforts have expanded as the regulator seeks to maintain control over an increasingly digital market.
Regulatory enforcement has become a central component of Sweden’s gambling policy, particularly as the country seeks to strengthen channelisation levels and reduce the financial impact of offshore operators. This enforcement strategy includes sanctions against operators targeting Swedish consumers without a licence, as well as monitoring licensed operators to ensure compliance with consumer protection rules.
At the same time, authorities continue to refine the regulatory framework governing the market. Recent policy developments include regulatory changes aimed at increasing oversight capacity and strengthening the authority’s supervisory role, including updated supervision fees introduced for licensed operators.
Regulatory Evolution Continues As Sweden Adjusts Its Gambling Model
Alongside enforcement initiatives, Sweden’s gambling framework continues to evolve as policymakers evaluate how the current licensing system performs.
The regulator emphasised that one of the primary objectives of Sweden’s 2019 gambling reform was to bring gambling activity previously taking place with offshore operators under state supervision. While the current 85% channelisation rate indicates that a majority of gambling activity now occurs within the licensed system, authorities acknowledge that further regulatory adjustments may be required to meet long-term policy goals.
Sweden’s gambling ecosystem therefore remains in a phase of ongoing regulatory development, with policymakers attempting to balance consumer protection, competitive market conditions and effective enforcement against offshore operators.
For digital gambling operators, the country continues to represent one of Europe’s most structured but closely monitored regulated markets, where regulatory compliance and responsible gambling measures remain central to long-term market participation.