Swedish Licensed Gambling Market Grows 5.1% in Second Quarter of 2026

Sweden's regulated gambling market recorded a clear acceleration in the second quarter of 2026, with licensed operators generating approximately SEK7.4 billion in turnover between April and June, representing a 5.1% increase compared with the same period last year.

The latest figures point to continued strength in Sweden's online gambling sector, which remains the dominant part of the regulated market. Commercial online gaming and betting generated just under SEK5 billion during the quarter, increasing by more than 7% year on year and accounting for roughly two-thirds of total licensed gambling activity.

The figures represent a stronger performance than the beginning of the year. During the first quarter, licensed operators generated SEK6.68 billion, an increase of only 0.8% compared with the corresponding period in 2025. The acceleration in the second quarter therefore indicates that demand strengthened considerably as the year progressed.

Turnover in the Swedish regulatory statistics is calculated as player stakes minus winnings paid out, rather than the total amount wagered by customers. The second-quarter figures remain preliminary and could be revised as additional information becomes available.

Online casino and betting were responsible for the overwhelming majority of the market's growth. The segment generated approximately SEK4.96 billion during the quarter, compared with around SEK4.63 billion in the second quarter of 2025.

The continued expansion of digital gambling reflects the structural shift that has taken place in Sweden since the country's market was re-regulated in 2019. Online operators have progressively increased their share of the market, while several traditional land-based segments have either stagnated or contracted.

The latest figures reinforce that trend. Online gambling represented around 67% of the total licensed market during the quarter, making it by far the largest category.

The growth of online gambling also comes at a time when Swedish regulators are maintaining close attention to player protection and the activities of operators that do not hold domestic licences.

One of the most significant developments in this area is the country's channelisation rate. The latest assessment estimated that approximately 84% of gambling in Sweden's competitive market took place with licensed operators during 2025. That represented a decline from 85% in 2024 and 86% in 2023.

The figure varies considerably between different gambling products. Betting recorded a channelisation rate of approximately 96%, while online casino was significantly lower at around 81%. This means that online casino remains the segment in which Swedish consumers are most likely to use operators outside the domestic licensing framework.

The continued presence of unlicensed operators is therefore an important issue despite the growth of the regulated market.

Swedish authorities identified more than 2,100 active gambling websites without a Swedish licence as of the end of April. A large proportion offered online casino products, while others combined casino and betting or operated in areas such as skin betting.

The figures demonstrate that the availability of unlicensed gambling remains substantial and that the growth of the regulated sector does not necessarily eliminate competition from offshore operators.

This creates a particular challenge for licensed businesses because they must comply with Swedish requirements covering responsible gambling, customer protection, advertising, financial controls and other regulatory obligations, while unlicensed competitors may operate without carrying the same compliance costs.

The Swedish market is therefore continuing to develop along two parallel tracks: a sizeable and increasingly sophisticated licensed industry and a persistent offshore sector that retains access to a meaningful share of Swedish consumers.

Player protection remains another central feature of the regulatory environment.

By the end of June, just under 138,000 people had registered for self-exclusion through Sweden's national Spelpaus system. This represented a decrease of approximately 0.7% compared with the previous quarter.

Spelpaus allows individuals to exclude themselves from gambling with licensed operators through a single registration. The slight quarterly decline does not necessarily indicate a reduction in gambling-related concerns, but it is a notable change following increases in registrations earlier in the year.

The regulator is also introducing technical changes to the way operators connect to the self-exclusion system. New technical requirements, including the use of unique operator credentials, are being implemented to strengthen the system's operation.

Another important change affecting the licensed market is Sweden's prohibition on licensed gambling operators accepting certain forms of credit-funded gambling. Restrictions introduced during 2026 prevent operators from accepting deposits financed through credit cards, overdrafts, personal loans and buy-now-pay-later arrangements.

The measures reflect a broader regulatory focus on preventing consumers from gambling with borrowed money.

The second-quarter results show that these additional compliance requirements have not prevented the regulated sector from growing.

Outside online gambling, state lotteries and gaming machines generated approximately SEK1.43 billion during the quarter. This represented an increase from the same period a year earlier, although the growth was considerably more modest than that recorded in online gambling.

Gambling activities operated for public-benefit purposes generated around SEK863 million. Hall bingo contributed approximately SEK51 million, remaining broadly stable.

Land-based commercial gambling recorded a stronger percentage increase, although from a much smaller base. The segment, which primarily covers casino-style games operated in restaurants, generated SEK73 million during the quarter, almost 13% more than the SEK64 million recorded a year earlier.

Despite that increase, land-based commercial gambling remains a relatively small component of the Swedish market compared with online gambling.

The closure of the final Casino Cosmopol venue in April 2025 has also fundamentally changed the country's land-based casino landscape. The state-operated casino business no longer contributes turnover to the quarterly market figures.

The changing composition of the Swedish market is consequently becoming increasingly clear.

Digital gambling is expanding, while traditional forms of gambling occupy a smaller relative share of total activity. For operators, this creates opportunities for continued online growth but also increases competition for customers in an increasingly mature market.

The strong second-quarter result may also be significant for the wider European gambling industry because Sweden is often viewed as an established and highly regulated market.

Unlike jurisdictions that are only recently introducing licensing frameworks, Sweden has several years of experience with a competitive licensed online gambling market. Its regulatory developments can therefore provide indications of how mature regulated markets evolve as consumer behaviour moves increasingly towards digital platforms.

The relatively high betting channelisation rate suggests that the domestic licensing system is particularly effective in retaining sports-betting activity within the regulated sector. The weaker online casino channelisation figure indicates that this success has not been replicated across all products.

The difference could have implications for future regulatory policy.

If authorities want to increase the proportion of online casino activity taking place with licensed operators, they may need to examine why customers continue to use offshore platforms. Factors could include product availability, promotional structures, payment options, taxation, advertising restrictions and the overall customer experience.

At the same time, regulators must balance market attractiveness against consumer-protection objectives.

A licensing framework that is too restrictive could encourage customers to migrate towards offshore operators, while insufficient safeguards could undermine the objectives of regulation.

The Swedish experience therefore demonstrates the importance of maintaining an effective balance between commercial competitiveness and regulatory controls.

For licensed operators, the latest figures provide evidence that there remains considerable demand for regulated online gambling in Sweden.

However, growth should not be interpreted as evidence that the market is free from regulatory pressure. Operators continue to face requirements relating to responsible gambling, marketing, customer identification, payment controls and monitoring of potentially suspicious activity.

The growing size of the online sector also increases the importance of AML controls.

Online gambling platforms process large volumes of customer deposits and withdrawals and can therefore be exposed to attempts to use gambling accounts to disguise the origin or movement of funds.

Operators need to understand customer behaviour, identify unusual transaction patterns and ensure that payment activity is consistent with the customer's profile.

The presence of offshore competitors makes this challenge more complex because customers may move between licensed and unlicensed platforms.

Regulators are therefore likely to continue focusing on the financial infrastructure supporting illegal gambling as well as the websites themselves.

Blocking unauthorised websites can limit access, but payment providers, affiliates, advertising networks and other intermediaries can also play a role in connecting offshore operators with Swedish consumers.

The persistence of more than 2,000 unlicensed websites demonstrates that website-level enforcement alone is unlikely to eliminate the offshore market.

The second-quarter figures nevertheless provide a broadly positive picture of the licensed sector.

A 5.1% annual increase to SEK7.4 billion represents meaningful growth, particularly compared with the relatively modest increase recorded during the first quarter.

The acceleration was driven primarily by commercial online gambling and betting, confirming the central role of digital products in Sweden's gambling economy.

The increase in land-based commercial gambling is also notable, although its contribution to the overall market remains small.

The next challenge for the industry will be determining whether the second-quarter acceleration can be maintained during the remainder of the year.

Seasonal factors, sporting events, consumer spending and changes in regulatory conditions can all influence quarterly gambling activity. The third-quarter figures will therefore provide a clearer indication of whether the stronger growth recorded between April and June represents a sustained trend.

For policymakers, the data provide evidence that Sweden's regulated gambling framework continues to generate a substantial and growing market. At the same time, the 84% channelisation rate shows that a meaningful proportion of gambling remains outside the licensed system.

For operators, the figures demonstrate both opportunity and pressure. The regulated market is expanding, but businesses must compete not only with other licensed operators but also with offshore platforms that can offer products without being subject to the full Swedish regulatory framework.

For compliance professionals, the combination of market growth, offshore activity and enhanced player-protection requirements makes Sweden a market where robust AML, responsible-gambling and customer-monitoring systems remain essential.

The second-quarter results ultimately underline the continuing transformation of Sweden's gambling industry.

Online gambling is firmly established as the dominant segment, regulated operators are recording renewed growth, and consumer-protection mechanisms remain an important part of the regulatory landscape.

But the sizeable unlicensed market shows that the country's regulatory transition is not complete. The ability of authorities and licensed operators to maintain high channelisation while preserving strong consumer safeguards will remain one of the defining challenges for the Swedish gambling sector in the years ahead.

By fLEXI tEAM