Sweden’s approach to regulating the gambling market has, in recent years, become a model for other European countries as they begin implementing similar reforms. Whether a country is transitioning from an unregulated market, an inadequately regulated one, or a state monopoly, Sweden’s licensing model has attracted considerable interest. But what exactly is it about the Swedish model that has sparked this interest?
A transparent gambling market
Information about Sweden’s licensed gambling market is publicly available. For example, the Swedish Gambling Authority’s figures show that operators holding a Swedish licence generated total gambling revenue of SEK 28.2 billion in 2025 (approximately USD 2.87 billion). The fully commercial segment, excluding state-run gambling and gambling for public-benefit purposes, accounted for SEK 18.7 billion (approximately USD 1.90 billion).
The SEK 18.7 billion was generated exclusively by operators holding Swedish licences and legally serving the Swedish market. The licensed market is clearly defined, rather than effectively borderless as it was previously. The number of operators and their revenue are reported quarterly in official statistics.
This transparency has also given rise to information and comparison websites that review and scrutinise these companies and their operations. One such comparison site is Casinorino.se, which compiles information about licensed casinos in Sweden.
As a result, the Swedish Gambling Authority is not alone in monitoring the market and ensuring compliance with licensing regulations. An entire commercial niche has emerged around doing just that, an additional benefit for countries seeking to tighten regulation of their own gambling markets.
The regulatory reform that became a Nordic reference point
In 2019, Sweden moved from a gambling monopoly to a licensing system. This meant that operators that had previously been able to operate relatively freely across borders and target Swedish players suddenly faced significant restrictions.
To retain access to the Swedish market, operators had to obtain a Swedish gambling licence and meet its requirements. This allowed the state to bring previously unregulated gambling activity within reach of oversight and taxation.
Studies conducted before the regulatory reform showed that only 50% of gambling in the competitive market took place under Swedish regulatory control. In a surprisingly short period of time, the Swedish licensing system succeeded in bringing a large majority of players from the unregulated market into the licensed system. This is another reason why the model has attracted interest in other countries.
The channelisation rate demonstrates the value of the licensing system
The channelisation rate provides information of particular interest to gambling regulators in other countries. It shows the proportion of gambling in the competitive market, primarily online casinos and betting, that takes place with operators holding Swedish licences. This proportion increased dramatically during the initial period but has followed a slightly downward trend since 2023.
Measurements by the Swedish Gambling Authority show the following channelisation rates:
- 2023: 86%
- 2024: 85%
- 2025: 84%
These figures are based on a player survey and an analysis of internet traffic. While the channelisation rate measures the share of gambling within the licensed market, the authorities also measure the share of players who remain within it, which stood at 96% in 2024.
Comparing the channelisation rate with the proportion of players who remain within the Swedish licensing system also indicates that those who gamble outside the system spend more money on gambling than those who remain within it.
All of these figures are publicly available in the Swedish Gambling Authority’s statistics and are therefore just as accessible internationally as they are in Sweden. At the same time, however, the authority cautions against drawing overly strong conclusions from the data, as comprehensive information on how much Swedes gamble outside the licensing system is not available.
According to the survey, some unlicensed gambling occurs because certain players have excluded themselves from gambling within the licensed system through Spelpaus, Sweden’s national self-exclusion scheme. Others believe they have better odds at casinos without a Swedish licence, while some seek games that are not available within the Swedish licensed market.
Spelpaus and other tools attracting international interest
The aspect of Sweden’s gambling licensing system that has perhaps attracted the most attention is Spelpaus. The system allows a player to exclude themselves from all licensed online casinos through a single action, and once the exclusion has been activated, it cannot be revoked before the selected period has expired.
Spelpaus is intended for players who feel that they have difficulty setting their own limits. Previously, individual casinos could offer a similar feature, but it was far too easy for players simply to move to another casino and continue gambling there.
Using Spelpaus is voluntary for players, but offering access to it is an absolute requirement for licensed gambling websites. What has attracted particular interest in other countries is that responsibility for the system rests with the state rather than with individual gambling operators.
