BOS Urges Stricter Laws to Fight Illegal Gambling
The Most Important Points at a Glance
The Swedish Trade Association for Online Gambling (BOS) is calling for stricter Swedish gambling laws. The reason for this is the growth of the black market, which is facilitated by legal loopholes. BOS proposes criminalizing all unlicensed gambling offers to better protect consumers and strengthen market integrity.
Black Market Grows Due to Legal Loopholes
BOS points out that unlicensed operators can target Swedish players as long as they do not use the Swedish language or the national currency (SEK). This regulation allows international gambling companies to serve Swedish customers without facing any consequences.
In a letter to the government, BOS stated:
“It is currently allowed for gambling companies worldwide and their service providers to offer games to Swedish customers, as long as this is done in a language other than Swedish and in a currency other than SEK. Most Swedes understand English and are familiar with the value of common foreign currencies such as the Euro.”
Call for Stricter Laws
BOS is demanding an amendment to the gambling law to prohibit all unlicensed offers – including the passive acceptance of Swedish players. This would enable more effective measures to block illegal websites.
BOS Secretary General Gustaf Hoffstedt emphasizes the urgency of these reforms:
“Not least because of the complete lack of consumer protection on the black market. If we want to eliminate this part of the gambling market, the gambling law must be changed, and all unlicensed gambling must be criminalized.”
Declining Channelization Rate as a Problem
A key concern for BOS is the so-called channelization rate – the proportion of players using licensed providers. The Swedish government aims for a channelization rate of 90%, but current figures show that this target is not being met.
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According to the Swedish horse betting monopoly ATG, traffic to unlicensed operators has increased tenfold since 2019. While the gambling regulator Spelinspektionen estimated a channelization rate of 86% in October, more recent studies suggest it is only between 70% and 82%.
BOS criticizes that despite repeated warnings to both the current and previous governments, no action has been taken. The organization is convinced that closing legal loopholes and criminalizing unlicensed offers are necessary to protect consumers and strengthen the legal market.
Our Assessment
BOS’s demands highlight a serious issue in the Swedish gambling market. Legal loopholes allow unregulated providers to operate without consequences, negatively impacting the channelization rate. Stricter regulations could help curb the black market and improve player protection. Whether the Swedish government will respond to these demands remains to be seen.
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