A general introduction to gambling law in Sweden

Introduction

i Definitions

The Swedish Gambling Act covers all types of gambling where money or any other monetary-valued prize is involved. Gambling is classified into sub-categories of 'lotteries, betting, combined gambling, and pyramid schemes', each defined as follows:

Lotteries: activities wherein the participant has a chance of winning a prize and the likelihood of winning depends entirely on chance. Pool betting is included in this definition.
Betting: activities wherein the participant has a chance to win a prize by placing a wager on the outcome of a future event or that a particular event will or will not occur in the future, including fantasy leagues and spread betting. Spread betting is, however, prohibited under the GA. Betting on the outcome of a lottery is only permitted with the consent of the holder of the licence for the lottery.
Combination games: gambling where the participant has a chance of winning a prize and the likelihood of winning depends on a combination of skill and chance.
Pyramid schemes: gambling where the winnings derive mainly from the bets of future participants and where the likelihood of winning depends on the number of participants who subsequently join. Pyramid schemes are prohibited under the GA.

Skill competitions and competitive sports for prizes fall outside the scope of the GA's definition of gambling. Competitions and games of skill that do not involve a bet-as-wager, nor activities that bet on the future value of financial activities, are, however, categorically excluded from the GA, thus requiring no licensing.

ii Gambling policy

In Sweden, gambling may only be offered in compliance with requirements for licensing and other applicable legal matters. Before the GA was adopted in 2025, offering gambling on the Swedish market used, in principle, to be reserved only for governmental entities or public benefit associations.

The gambling market was opened up to arranges for commercial operation into consideration with the new enactment of the act. Under the licensing regime, all forms of gambling require a licence, except for those specifically excluded. Offering unauthorised gambling was, and still is under the new act as well as under the licensing regime, a criminal offence (see Section III.ii).

The key central idea behind the Swedish gambling policy is public control over gambling activities to make them safe and sound, by forcing them into the hands of responsible operators who can be regulated and controlled. The legislation is also characterized by strong consumer protection to achieve the overall policy aim to minimize the risk of social harm from gambling. Consumer protection is indicative, for example, in allowing players to suspend themselves from all (regulated) gambling, as well as a prohibition on operators extending credit to players. The legislation also introduces the duty of care upon all operators to actively prevent excessive gambling through ongoing monitoring of gambling behavior.

iii State control and private enterprise

Following the new system, some licenses demand that they are only given to state-owned companies-the licenses for land-based casinos and token gambling machines, which operate away from ships in international travel. The licensing authority under AB Svenska Spel runs all the token gambling machines available in Sweden through its 100%-owned subsidiary. It also offers the remaining land-based casino in Sweden, located in Stockholm. Its other subsidiary, Svenska Spel Sport & Casino AB, holds licenses for commercial betting and online gambling, competing in the commercial market. AB Svenska Spel also holds the State Lottery License.

iv Territorial issues

Gambling varies from very tight regulations to very liberal regulations within a country. No localities have been conferred a favored status.

v Offshore gambling

The GA applies to every gambling activity available within Sweden, including online gambling heading for the Swedish market. That is to say, foreign operators, such as betat.net , which are considered as directing online gambling toward the Swedish market, must apply for all necessary licences.

The Swedish Gambling Authority (SGA) considers the assessment of whether an operator advertises online gambling towards the Swedish market to be a holistic assessment of all the circumstances at hand. The SGA usually finds some considerations to be indicative of:

the website offers deposits or withdrawals, or shows winnings, in Swedish krona;
the domain '.se' is used;
the website, or an affiliate, uses a payment alternative or payment service provider registered in Sweden or mainly used by Swedish consumers;
the website, or an affiliate, uses an e-identification system used mainly by Swedish consumers;
the website has information in Swedish;
the operator offers terms and conditions in Swedish or otherwise refers to Swedish customers;
the operator has a Swedish customer service/FAQ or otherwise refers to what applies to Swedish customers;
the operator has contact information for customer service with a Swedish phone number; and
the operator, or its affiliates, directs its advertisement towards Swedish consumers.

SGA has the right to challenge illegal operators using prohibitory injunctions. This authority has been exercised by the SGA a number of times. In other words, it might instruct an ISP to air a warning message on an operator's website, informing visitors that the operator is unlicensed and not supervised by that authority. SGA cannot set an order of blocking payments to a payment service provider in conjunction with illegal gambling. Payment service providers are obliged to reject a payment order under MCC 7995 unless it is a request from a licensed operator. SGA itself is responsible for keeping payment service providers informed of the existence of all licensed operators.

A licensee not domiciled or not established in a country of the EEA should appoint a physical representative who resides permanently in Sweden.