EGR has partnered with 4H Agency to bring its readers a series of long-form articles on the requirements and key facts and figures for a host of markets throughout the world.
Tapping into 4H’s talent pool of experts, the articles will outline the regulatory framework and entry requirements for interested parties, as well as an insider’s view on how the market could shape up in the coming years.
Here, the series continues with Sweden, with commentary from 4H partner and head of consulting department, Ivan Kurochkin.
Market overview
Sweden’s gambling sector has transitioned from a strict state monopoly to a regulated, competitive market. Throughout much of the 20th century, gambling was either banned or tightly controlled, with the state gradually centralising operations under entities like Svenska Penninglotteriet and Tipstjänst. In 1997, these were merged into Svenska Spel, which held exclusive control over most gambling activities.
However, the rise of online gambling and pressure from international operators, particularly after Malta’s EU accession in 2004, led Sweden to overhaul its system. In 2019, the country introduced a licensing regime, opening the online sector to private operators under strict oversight by the Swedish Gambling Authority (SGA).
Today, Sweden’s gambling market is mature, well-regulated and largely digital. The country has a population of 10.6 million, a GDP of ~$610bn, and a total gambling GGR of ~$3bn. Online gambling dominates the landscape, with projected revenue of ~$520m in 2025. While the focus remains on the digital space, further developments are expected – particularly regarding the possible re-entry of the land-based casino sector. Sweden continues to represent a stable and high-potential market with a strong regulatory framework and broad domestic demand.
Regulations
The SGA issues following gambling licencees:
- Online gambling, which includes online casino and cards, online sports betting, online lottery and online slot games.
- Land-based gambling, including:
- Casinos organised in restaurants and hotels;
- Slot machines provided for public entertainment;
- Card games in forms of tournaments.
- Land-based casinos (venues) is subject to state monopoly, which shall end on 1 January 2026, and open the vertical to the interested licensees.
- Land-based slot machines located in hotels and restaurants, which will be issued after 1 January 2026.
- Gambling on ships in international waters, including:
- Casinos on ships;
- Slot machines on ships.
- Land-based sports betting
- B2B, which covers companies that manufacture, provide, install or modify gaming software used in the provision of online games.
General requirements applicable for all licensees:
- A licence may only be granted to a person who is deemed to have the knowledge, experience and organisation required to operate the gambling business, and is otherwise deemed suitable to operate such business.
- A licence may not be granted to anyone who is bankrupt, is under 18 years of age, has a trustee, has significantly disregarded obligations in business activities, or has been guilty of serious crime.
- A licensee who is not resident or established in a country within the European Economic Area shall have a physical representative who is resident in Sweden.
- Gaming systems (servers) of the licensees must be located in Sweden.
- Licensee shall save all information about the operation of the gaming system for at least five years.
Requirements for online gambling:
- Online gambling licensee shall test and certify its gaming systems from a body accredited for testing, controlling and certifying the gaming system.
- Online gambling licensee shall not allow the players to place their own bet using technical or electronic equipment provided by the licensee or its gaming agent.
Requirements for land-based gambling, namely for slot machines provided in connection with public entertainment:
- Such licence may be granted if:
- the game is provided in connection with a public entertainment event in the form of a funfair or similar;
- each machine is provided with the licensee’s name;
- it can be assumed that the machine will not be used for any purpose other than that for which it is intended according to the licence application; and
- it can be assumed that good order will prevail at the location where the game is to be conducted.
- Slot machines licensees shall not allow anyone who has won a game on a slot machine to redeem the winnings for another item or cash from the licensee, or the person who owns the location or conducts business there.
Requirements for land-based gambling, namely for card games in forms of tournaments:
- Such a licence may be granted if:
- at least eight and at most 48 players participate in the tournament;
- there is no other gambling conducted at the venue;
- no technical equipment is used by the players in connection with the game;
- only persons over the age of 18 are present at the venue;
- good order prevails at the venue; and
- the licensee or officials do not participate in the game.
- Such licences may be granted for a maximum of two years and a maximum of two tournaments per day. The licence decision shall state how many tournaments may be provided and at what location the game may take place.
- Online casino licensees may be granted a licence to provide an annual land-based card game tournament. The number of players may then amount to a maximum of 10,000 people.
- No fees other than the stake may be charged in such card games.
Requirements for land-based casinos (venues) (in force until 1 January 2026):
- Total number of slot machines across all land-based casinos in Sweden may not exceed 2,500, and in a casino, the number of slot machines may not exceed ten times the number of casino games.
- The maximum number of automated casino games in a casino shall be half the total number of casino games.
- Only four land-based casino (venues) licences can be granted.
Requirements for land-based slot machines in hotels and restaurants (in force from 1 January 2026):
- Such a slot machines licence may be granted if:
- the game is provided in connection with hotel and restaurant operations, if the business has a service permit or in connection with bingo;
- maximum of five slot machines are placed at each gaming location;
- slot machine can be controlled by electronic means of communication;
- slot machine is provided with the licensee’s name or some other identifying mark;
- slot machine is not used for any purpose other than that for which it is intended according to the application;
- there is good order at the place where the game is to be conducted; and
- game is provided in a premises that is not used specifically for such games (slot machine clubs or land-based casinos (venues)).
Requirements for land-based sports betting:
- Such licenses may not apply to:
- betting on the outcome of a lottery without the consent of the person providing the lottery;
- betting on events where the majority of the participants are under 18 years of age;
- interval betting; or
- such betting on events or happenings that are offensive or inappropriate from a public point of view.
- It is not permitted to allow the player to place their own bet using technical or electronic equipment provided by the licensee or its gaming agent in land-based betting.
Requirements for B2B:
- B2B providers may not manufacture, provide, install or modify gaming software for anyone who does not have the necessary B2C licence.
- Slot machines may only be owned by those who have a permit for this, or by
- the estate of the machine owner for a period of no more than one year from the death;
- the estate of the machine owner in bankruptcy until the bankruptcy has been concluded; or
- the person whose permit to own the machine has been revoked, until three months have passed from the date on which the decision on the revocation became legally effective.
Licence cost and term
- Online gambling (five years): Application fee is ~$24,000.
- Land-based gambling, namely for casinos in restaurants and hotels (five years):
- Application fee for individual applicant is ~$2,600;
- Application fee for legal entity applicant is ~$8,300;
- Application fee is ~$300 per slot machine.
- Land-based gambling, namely for slot machines provided in connection with public entertainment (five years):
- Application fee for individual applicant is ~$2,600;
- Application fee for legal entity applicant is ~$8,300;
- Application fee is ~$300 per slot machine.
- Land-based gambling, namely for card games in forms of tournaments (two years):
- Application fee for individual applicant is ~$2,600;
- Application fee for legal entity applicant is ~$8,300;
- Application fee for online gambling licensee applicant is ~$3,100;
- Application fee is ~$300 per card gaming location.
- Land-based casinos (venues) (five years):
- Application fee is ~$20,700;
- Application fee for slot machines is ~$400.
- Land-based slot machines in hotels and restaurants (five years):
- Application fee is ~$2,000;
- Application fee is ~$200 per slot machine.
- Land-based betting (five years):
- Application fee is ~$23,800.
- B2B (five years):
- Application fee is ~$12,400.
There is also an annual supervision fee in amount of ~$27,400.
Taxation
- Gambling tax 22% GGR.
- Winnings tax (tax on profits) 30%, which is payable over ~$10 if:
- The games are aimed at the Swedish gaming market and require a licence in Sweden, but the gaming operator lacks the Swedish licence;
- The online games are not specifically aimed at a gaming market within the EEA;
- If the winnings arise from a pyramid scheme.
- Corporate income tax 20.6% on worldwide income unless tax treaties or special exemptions apply.
- VAT tax of 25% on most goods and services.
Responsible gambling and AML
Sweden imposes a comprehensive framework to ensure player protection and safeguard the gambling sector from financial crime. Operators are expected to implement structured procedures across several key areas: player verification, game controls, responsible gambling tools, financial monitoring and staff oversight.
Operators must verify the player’s identity before gameplay begins. Temporary accounts may be opened, but full verification is required before any payout is made. Only individuals with permanent or long-term residency in Sweden can register, and players must provide their name, address and personal identification number, verified through secure electronic means or other reliable sources.
Customer due diligence (CDD) requirements are mandated both from responsible gambling and anti-money laundering compliance. CDD is applied when establishing a business relationship or handling transactions involving:
- Single or aggregated transactions of ~$17,400 or more.
- Fund transfers above ~$1,100.
- Payments of winnings or stakes totaling ~$2,300 or more.
All customers must be assessed based on risk and categorised accordingly. Higher-risk customers require enhanced verification, documentation of the source of funds and closer transaction monitoring.
Suspicious transactions must be reported to the police without delay, regardless of the transaction amount or whether it was completed. Reports must include supporting documentation and be submitted confidentially.
Operators must store AML-relevant data securely for up to 10 years, especially when linked to suspected criminal activity or as requested by authorities.
Large operators (with annual stakes over ~$58m) must appoint a designated AML officer, a central function manager responsible for daily oversight and an independent review function to assess internal controls. These roles are responsible for ensuring full compliance, risk assessment, internal audits and staff training on AML and counter-terrorism financing procedures.
Licensed gambling services may not be offered to individuals under 18. For land-based casinos, the minimum age is 20. All games must clearly state age restrictions, and systems must support accurate age verification.
Operators must clearly communicate game rules, odds, and relevant terms in Swedish. Trained staff must be available to handle complaints and inquiries. Customer service procedures must ensure transparency and accessibility.
All operators must have internal policies defining which employees and contractors are prohibited from gambling with the operator. Staff involved in product development, sales, marketing, supervision or customer service must undergo regular training focused on gambling-related risks and behavioural awareness.
Deposit limits
Before playing online, users must set a personal deposit limit. For physical slot machines, players must set a loss limit instead. Games must not simulate near-win effects or offer demo versions with altered outcomes. Operators are prohibited from offering credit to players, with very limited exceptions for specific licensed lotteries and under capped conditions.
Bonuses
Bonuses may only be offered the first time a player uses a licensed operator’s services, except in certain cases for non-political lotteries. Any deviation must comply with specific eligibility and communication rules.
Self-Exclusion
Operators must offer self-exclusion options, both temporary and indefinite, with a minimum 12-month lockout period for permanent exclusions. A 24-hour self-ban option must be available for online casino, bingo and slot-style games. All exclusions must be integrated with the national self-exclusion register. Additionally, an online self-assessment tool must be made available to help players reflect on their gambling habits.
Marketing
Swedish gambling advertising is governed by strict standards aimed at ensuring consumer protection, with particular emphasis on preventing exposure to minors and individuals at risk. All promotional activity must be moderate, clearly identifiable and compliant with a range of content, format and targeting rules.
Gambling advertising may not exaggerate the benefits or downplay the risks of gambling. Advertising must never be designed to appeal to or be directed at individuals under the age of 18.
Gambling advertisement is strictly prohibited in the following cases:
- To individuals who are self-excluded from gambling.
- To players who have closed their accounts, unless they have explicitly opted in to receive further communication.
- Through sponsorships involving products or materials intended for use by minors (eg, clothing or school-related items).
- From unlicensed operators.
Additionally, all advertising must:
- Clearly state the minimum legal age for participation.
- Provide visible contact details for organisations offering help with gambling-related issues (in physical gambling venues and commercial communications (excluding radio)).
- Include clear identification of the associated party or group.
Market specifics for entry
Swedish gambling market is currently semi-liberalised. The online sector is fully open to private operators, with 243 active licences issued as of 2025. Land-based sports betting also allows for competition, with 115 licences in place. In total, there are 428 valid casino licences and 194 authorised B2B suppliers, reflecting a broad and regulated digital ecosystem.
However, land-based casinos remain under a state monopoly operated by Svenska Spel. These venues have long ranked second in popularity after online gambling but are now being phased out. In May 2024, the Ministry of Finance proposed a memorandum to end state-run casino gambling. As a result, Casino Cosmopol Stockholm – the last functioning land-based casino in Sweden – is scheduled to close permanently by 1 January 2026. This marks the beginning of a new chapter: the closure is not the end of physical gambling, but rather a necessary step toward opening the sector to private competition under a new licensing model.
Combined with upcoming reforms, including a nationwide credit ban, stricter AML controls, enhanced oversight of B2B providers and unified advertising standards, Sweden is clearly laying the groundwork for a more open yet highly regulated market. The country is moving toward a modernised regime where both digital and land-based gambling are governed by the same principles of transparency, accountability and player protection.
The 4H view
There are several trends which occurred in Sweden this year.
First of all, regulatory enforcement is increasingly stringent. Leading operators, including Betsson, Snabbare and TSG Interactive, have collectively been fined for ~$22m for AML shortcomings.
Also, it is important to note that legal reform is on the horizon – the government is reviewing amendments to the Gambling Act to close loopholes used by offshore operators to bypass licensing by avoiding Swedish language or currency. Final recommendations are expected by September 2025.
Considering the above, operators and other stakeholders, interested in the Swedish gambling market, shall:
- Invest heavily in AML controls: Implement robust customer due diligence systems that flag abnormal activity effectively. The recent sanctions demonstrate a zero-tolerance approach and show that reactive measures or assumptions are no longer acceptable.
- Demonstrate commitment to player safety: Track and publicly report metrics like ‘healthy revenue’ to show leadership in responsible gambling. High compliance standards not only reduce regulatory risk but also build trust and brand reputation.
- Monitor and prepare for legal changes: With reform on the way, ensure your platform and marketing are fully aligned with Swedish licensing requirements. Review targeting criteria, language use and currency handling to guard against displacement from the market.
- Engage proactively with regulators: Demonstrate transparency by cooperating with authorities on enforcement initiatives. Early dialogue can position operators advantageously amid evolving expectations and oversight.
Sweden’s gambling market remains a mature, regulated environment with growing emphasis on sustainability and enforcement. Staying ahead means aligning not just with current rules – but with the intent and direction behind them.
The post The 4H View: Everything you need to know about Sweden first appeared on EGR Intel.
EGR has partnered with 4H Agency to deliver a monthly insight into regulated markets’ key requirements. This time, Sweden is in the spotlight
The post The 4H View: Everything you need to know about Sweden first appeared on EGR Intel.