BOS Advocates Full Overhaul of Swedish Gambling Regulation

The Swedish online gambling trade body BOS, represented by Chief Executive Officer Gustaf Hoffstedt, has called for a comprehensive reset of gambling regulation in Sweden. Hoffstedt specifically urges the government to divest its ownership of Svenska Spel and focus solely on creating and enforcing legislation. He contends that the current structure advantages the state operator and undermines competitive neutrality in the licensed market.

State Ownership and Regulatory Conflict

Gustaf Hoffstedt asserts that the government's dual role as both market regulator and owner of Svenska Spel, the state gambling operator, creates inherent conflicts of interest. Swedish law currently allows the government to:

• Propose and enact gambling legislation
• Supervise operators through the gambling authority Spelinspektionen
• Operate its own commercial gambling company, Svenska Spel

"There are no watertight partitions between the legislative and judicial powers and the state-owned company. Therefore, the government-owned gambling company will always be given positive discrimination," said Hoffstedt during a pre-event interview.

He believes the only solution is for Sweden to sell Svenska Spel, which would enable policymakers to concentrate on drafting effective laws and monitoring compliance. Additionally, BOS supports further re-regulation to open the lottery market to private competition, not just other gambling sectors.

Swedish Licensed Market: Channelisation, Policy, and Unlicensed Play

The reregulated framework established in 2019 was designed to increase channelisation—the share of Swedish players on licensed platforms. However, both BOS and industry data indicate that channelisation rates have been falling, prompting concerns among private operators about the government’s chosen regulatory tactics.

Hoffstedt attributes declining channelisation to the government’s emphasis on restricting licensed operators rather than making the regulated market more attractive. He notes that during the current parliamentary term, which ends this autumn, no substantial measures have been implemented to incentivise legal play, while simultaneous efforts have targeted unlicensed operators.

• No action yet on criminalising the conversion of Swedish players by unlicensed firms
• Focus remains on enforcement, not player incentives
• High channelisation requires a balance: two-thirds investment in regulated market appeal, one-third targeting the unlicensed sector

"Such a one-sided policy will never be successful," Hoffstedt maintains. "High channelisation can only be achieved if politicians and gambling authorities prioritise the attractiveness of the licensed gambling market."

Swedish Market Stagnation and International Expansion

Recent financial results from Swedish operators and suppliers, including Betsson, Evolution, Catena, and Angler, show stagnant or only modest growth in local revenues. The highly interconnected market means changes in one area ripple throughout the ecosystem. Hoffstedt attributes this in part to online gambling penetration, which exceeds 68% in Sweden—Europe’s highest. With limited remaining scope for migration from land-based to online, overall market expansion is constrained.

Private companies have increasingly turned to international markets. Betsson's acquisition of Rhino’s B2C assets in Canada and Evolution’s recent launch in Alberta demonstrate this trend. Hoffstedt points out that internationalisation is not new for Swedish gambling businesses; for years, the domestic market’s size—eight million adults—was insufficient for significant growth. For example, he estimates the Swedish share of Evolution’s total revenue may be around one percent.

Effects of the 2019 Re-Regulation and Lessons for Finland

Despite structural criticisms, the 2019 re-regulation brought positive changes to Sweden’s gambling landscape. These include:

• Greater competitive dynamics among responsible operators
• Introduction of a central self-exclusion register
• Legally binding player protection measures

With Finland preparing to liberalise its gambling market in 2027, Hoffstedt suggests the Finnish government should learn from Sweden and Denmark’s experiences, while avoiding Sweden’s perceived mistakes to create a more effective regulatory model for the region.

Industry Events and BOS Visibility

Hoffstedt will represent BOS at the SBC Summit in Lisbon from 29 September to 1 October, a gathering expected to attract 40,000 delegates. He emphasises the importance of international dialogue, even postponing his traditional moose hunting trip to participate in discussions with industry stakeholders in Portugal.

Participants at the SBC Summit will engage in three days of panel sessions, networking opportunities, and an industry expo featuring major global brands. The event provides a focal point for debate on topics that include regulation, b2b business, and industry innovation.