A new report from ATG highlights the long-standing issue of unlicensed gambling in Sweden, showing that a significant portion of the country's gambling activities are still outside the regulatory system.
Despite increasing regulatory efforts, the channeling rate (i.e., the percentage of bets placed within the licensed gambling framework) for the fourth quarter of 2024 is reported to be only 69-82%. This figure is far below the Swedish government's target of 90%.
ATG CEO Hasse Lord Skarplöth commented on the issue, saying: "It is unreasonable that such a large proportion of gambling activities are still conducted outside the licensing system.
"Unlicensed gambling is a breeding ground for money laundering—but most importantly, Swedish players are not protected from rogue operators.
"The annual turnover of unlicensed gambling is almost equivalent to the entire cost of Swedish elementary schools."
It is worth noting that since Sweden re-regulated the gambling market in 2019, the traffic to unlicensed sites has increased tenfold, and the unlicensed market now generates about 150 billion Swedish kronor (approximately $14.7 billion) in revenue each year.
The ATG report reveals the operations of these unauthorized platforms, showing that 17 out of the 20 largest sites use the same platform providers as licensed operators, which is impossible under the current regulatory framework.
Furthermore, among the top 20 sites, six use BankID to process direct deposits and withdrawals through Swedish bank accounts, and two sites are listed on the Swedish Gambling Authority's prohibition list.
Recently, the National Audit Office released a report criticizing the Swedish Gambling Authority for insufficient regulation, concluding that the current regulatory framework lacks the effectiveness promised during the market re-regulation period in 2019.
