Publishing a comparative study between Sweden and Denmark, trade body outlines clear liabilities of why a restrictive gambling regime is undermining online channelisation for  online casino. As such, Swedish ministers must recognise mistakes and implement new policies and balanced protections in 2026.

The Riksdag has received the recommendations and insights on how to strengthen the channelisation rates of Sweden’s online gambling market, in the interest of maximising consumer protection.

A comparative study has been published by BOS, the Swedish Trade Association for Online Gambling, providing contrasts and comparisons with the neighbouring regime of Denmark.

The study, undertaken by independent law firm Nordic Legal, identifies why Sweden has failed to meet its 90% channelisation target — a principal objective of the 2019 re-regulation of gambling under the new regulatory framework of the Gambling Act (2018).

Audiences are reminded that neither Sweden nor Denmark are immune to offshore competition — a factor becoming increasingly opaque to consumers due to the recent rise of crypto casinos and skin betting websites targeting both nations regimes. 

No hiding from data

Yet, on a comparative basis, the study finds that Denmark maintains higher overall channelisation due to more flexible controls and proportionate restrictions on online casinos, thereby supporting its regulatory strategy.

The study refers to two sources examining Swedish and Danish online casino trends. According to H2 Gambling Capital, both countries report an overall channelisation rate of 72%. 

However, when broken down by segment, Sweden shows a lower channelisation rate in online casino (62%) compared to Denmark (70%), while Sweden outperforms Denmark in betting (83% vs 74%).

In contrast, an ATG Web Traffic Study reveals a more pronounced difference. It estimates Sweden’s overall channelisation at 68%, with only 57% for online casino and 77% for betting. Meanwhile, Denmark’s combined online casino and betting channelisation is significantly higher, ranging between 90% and 95%.

Sweden’s visible liabilities 

Liabilities in online casino operations are particularly evident in the areas of product scope and advertising regulations. In Sweden, the narrow interpretation of permissible games — combined with the absence of a formal pre-approval mechanism — exposes operators to considerable compliance risks.

“New games must fall within the definitions of existing categories (casino, betting, etc.), which are subject to narrow interpretations. The Swedish Gambling Authority (SGA) offers limited formal guidance, and there is no pre-approval system to confirm that a new product is compliant before launch.”

This creates a risk-averse environment where operators may avoid innovation altogether for fear of regulatory sanction. By comparison, Denmark uses a defined positive list, offering greater regulatory clarity on permitted games. However, flexibility remains limited, as the process for adding new game formats such as crash games is slow and bureaucratic.

“While Denmark’s approach is more predictable, it remains inflexible for approving new formats… innovation is still restricted by the rigidity of the permitted list.”

A further liability for operators in Sweden lies in its strict regulation of advertising and customer bonuses. Swedish law permits only a one-time welcome bonus, while ongoing incentives and loyalty rewards are strictly prohibited.

“The prohibition on ongoing bonuses means that licensed operators have far fewer tools to compete for player loyalty compared with unlicensed operators, who face no such constraints.”

This has placed licensed operators at a clear commercial disadvantage, particularly in the online casino segment, where consumer engagement and promotional flexibility are essential.

“Operators reported that the one-bonus rule puts them in an impossible position: the retention of customers is hindered, while the unlicensed market freely uses aggressive and continuous promotions.”

In contrast, Denmark permits both acquisition and retention bonuses under a structured framework, including caps and transparency requirements, allowing licensed operators to compete more effectively without compromising responsible gambling standards.

These differences not only affect business viability but also undermine consumer protection. Licensed Swedish operators are unable to effectively retain players, pushing users toward offshore sites that are unregulated, riskier, and untaxed, contributing directly to the country’s lagging channelisation rates in the online casino vertical.

Easy channelisation fixes 

The headline recommendation for improving channelisation urges the Swedish government to repeal the current restrictions on customer bonuses and introduce a new framework for customer incentives and engagement.

To this end, BOS recommends that Swedish authorities collaborate more closely with licensed operators to broaden the scope and interpretation of permissible online casino features and functionalities.

BOS also supports the expansion of enforcement powers for Spelinspektionen, Sweden’s gambling regulator, particularly in enabling direct blocking measures against black market operators. However, for these powers to be effective, the Inspectorate must be adequately resourced and introduce a formal pre-approval process for new products.

Licensed operators should be empowered to play a greater role in consumer protection through enhanced regulatory guidance and open dialogue. Importantly, they must be informed of current channelisation rates as part of regulatory conditions, ensuring transparency and shared responsibility in maintaining a well-functioning gambling market.

BOS has also expressed support for the regulatory reforms proposed by Consumer Affairs Commissioner Marcus Isgren, particularly those aimed at broadening the scope and interpretation of the Swedish Gambling Act to improve competitiveness and regulatory clarity. 

However, the trade body has firmly rejected the 81 smart proposals submitted by Svenska Spel CEO Anna Johnson, criticising them as overly restrictive and damaging to competition in the games of chance sector. BOS argues that the proposals would entrench monopoly-like conditions and hinder innovation within the licensed market.

“We hope that the report will be a useful tool and encourage Sweden to find inspiration in several of the measures and approaches that have been so successfully implemented in Denmark. Some of them are strictly rule-based, such as how loyalty programmes are regulated. Some are more difficult to approach and of a cultural nature — but just as important — and are connected to the policymaker’s attitude towards the industry it is supervising,” said Gustaf Hoffstedt, Secretary General of BOS.

“Hopefully, this report can inspire policymakers in Sweden to choose the path of regulation that strengthens the licensed gambling market and, as a consequence, strengthens consumer protection — as neighbouring Denmark has successfully proven is possible,” Hoffstedt concludes.

2026: Year of Reckoning 

Swedish gambling licensees have been advised to prepare for a transformative 2026, as the government prepares to implement a comprehensive ban on all credit-related transactions from April. 

Spelinspektionen has also been granted expanded powers to strengthen enforcement and increase penalties for non-compliance and failures relating to duty of care.

As it stands, the Swedish Riksdag is expected to vote by the end of the year on a series of amendments to the Gambling Act. These include new definitions of unlicensed gambling activity, promotional restrictions, marketing rules, and customer engagement standards. 

BOS has not yet received confirmation on whether the government will incorporate any of its key recommendations, as Sweden continues its ongoing and evolving review of national gambling legislation.