BOS Demands Government Action on Gambling Black Market

BOS Urges Swedish Government to Remove Gambling Act Loophole

By Lisa Spencer Senior Editor Updated: 26 February 2025

Lisa Spencer Senior Editor

As a Senior Editor at Betting.US, Lisa Spencer is a valuable member of our expert team. With a Master’s degree in Applied Mathematics, Lisa is adept in gambling theory and analyzing odds. She contributes by writing online sportsbook reviews and finding competitive markets to help our readers make an informed choice.

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The Loophole: A Gateway to Illegal Gambling

BOS argues that the Gambling Act, as it stands, only prohibits unlicensed operators when they actively target consumers in Swedish and/or process transactions in Sweden’s local currency. The association contends that this creates a significant loophole, allowing international gambling companies to offer their services to Swedish players in other languages, such as English, and process payments in foreign currencies like the Euro.

Because a large portion of the Swedish population is proficient in English, this loophole effectively renders the licensing requirements toothless for many offshore operators.

A Quarter of All Gambling is Unlicensed

Gustaf Hoffstedt, General Secretary of BOS, stated:

It is entirely inadequate for almost a quarter of all gambling in Sweden to be via unlicensed operators. Not least, given the total absence of consumer protection on the black gambling market. If we are to succeed in eliminating this part of the gambling market, the Gambling Act must be amended, and all unlicensed gambling must be criminalized.

According to the association, this stark assessment highlights the scale of the problem and the urgent need for government intervention.

A Call for Legislative Reform

BOS is demanding that the government revert to the original proposal from the Gambling License Investigation, which would have criminalized all unlicensed gambling activity, regardless of the language used or the currency of transactions. They believe this is the only way to effectively close the loophole and bring the expanding black market under control.

The association argues that this change is crucial for achieving the government’s stated channelization target of 90%, which is currently being significantly undermined by the ease with which Swedish players can access unlicensed gambling sites.

Years of Advocacy, Limited Action

BOS has been raising this issue with current and previous governments, but their concerns have yet to be adequately addressed. They argue that the existing loophole not only jeopardizes consumer protection, leaving players vulnerable to unregulated and potentially unscrupulous operators but also significantly hinders the growth and revenue potential of the regulated gambling market in Sweden.

The Wider Context: Channelization and Market Regulation

This call for legislative reform comes as Sweden grapples with broader concerns about channelization rates – the percentage of gambling activity taking place within the regulated market – and the increasing prevalence of unlicensed gambling.

The government has recently announced a review of the Gambling Act, which includes examining the “directional criterion” for licensing and potentially strengthening enforcement against unlicensed operators. BOS welcomes this review but insists that closing the language and currency loophole must be a priority,

The Stakes: Consumer Protection and Market Integrity

For BOS, the stakes are clear. Closing this loophole is essential for creating a fairer, more sustainable, and safer gambling environment for Swedish players. They argue that the current situation allows unlicensed operators to exploit weaknesses in the legislation, undermining consumer protection and damaging the integrity of the regulated market. The association is determined to continue its advocacy until the government takes decisive action to close the loophole and bring the black market under control.