Sweden Moves to Clamp Down on Unlicensed iGaming With Sweeping New Access Restrictions

Sweden is taking a decisive step toward tightening control over unlicensed online gambling, as Spelinspektionen, the country’s gaming regulator, formally submitted a detailed report to the government on March 31 outlining a new enforcement framework.

The proposal lays out both technological and administrative obligations that offshore operators must implement to prevent Swedish citizens from accessing their platforms, forming part of a broader legislative push to amend the existing Gaming Law.

At the heart of the reform is a fundamental shift in how illegal gambling is defined. The regulator is advocating for a move away from the long-standing “directional criterion,” which previously required proof that operators were actively targeting Swedish consumers—such as by offering services in Swedish or accepting the Swedish krona (SEK). This approach, authorities argue, has proven too limited in practice, leaving many platforms beyond effective oversight.

The new proposal introduces what is referred to as the “participant criterion.” Under this revised standard, the intent of the operator is no longer relevant. Instead, the mere ability of Swedish residents to access and use a platform would render the operation illegal and subject to penalties. This change, based on a review led by researcher Marcus Isgren, is intended to close loopholes that have allowed unlicensed operators to remain accessible without overtly targeting the Swedish market.

To support this stricter definition, Spelinspektionen emphasizes that policy changes alone—such as updating terms and conditions to exclude Swedish users—are insufficient. The report insists that robust technical barriers must be implemented to ensure compliance. These measures would apply to both new users and existing accounts, requiring operators to actively block Swedish participation across multiple levels.

Among the most prominent requirements is the implementation of geo-blocking systems. Platforms must deploy software capable of identifying Swedish IP addresses and automatically preventing access, displaying a blocking message when necessary.

Additionally, if a user attempts to conceal their location through tools like VPNs, access must be denied outright under the proposed rules.

The regulator also calls for stricter onboarding controls. Registration systems would need to exclude Sweden entirely from selectable country options, while backend databases must automatically reject any entries that include Swedish addresses, postal codes, or phone numbers beginning with the international dialing code “+46.”

Financial transactions represent a third critical enforcement pillar. Under the proposal, unlicensed operators would be barred from processing payments originating from Swedish banks or card systems that rely on local electronic identification methods. Furthermore, they would be required to block any withdrawal requests directed to accounts with IBAN numbers starting with “SE,” effectively cutting off financial flows between Swedish users and unlicensed platforms.

Taken together, these measures outline a comprehensive, technology-neutral roadmap designed to strengthen market surveillance and enforcement. By redefining illegality through accessibility rather than intent, Sweden aims to significantly reduce the presence of unlicensed gambling operators and reinforce the integrity of its regulated market.

By fLEXI tEAM