ATG CEO Calls for Action as Illegal Gambling Threatens Swedish Market

A report from AB Trav och Galopp (ATG) in Sweden has shown significant growth in unlicensed gambling platforms, despite the regulator’s attempts to curb it.

ATG’s fourth quarter report showed that traffic to unlicensed gambling sites has increased tenfold since 2019.

Swedish Gamblers Turn to Unlicensed Sites as Regulations Tighten

Hasse Lord Skarplöth, CEO of ATG commented: “It is unreasonable that such a large share of gambling still takes place outside the licensing system. Unlicensed gambling is a breeding ground for money laundering – but above all, it leaves Swedish players unprotected from unscrupulous operators.”

Sweden tightened regulations in 2019. Despite stricter rules and regulations, Sweden’s channelization rate is significantly below the government’s target of 90 percent. Channelization is the percentage of gambling conducted within the licensed market. The ATG report suggests it sat between 69 and 82 percent for Q424, showing that regulatory measures have simply failed to curb the expansion of unlicensed operators.

According to the report, the unlicensed gambling market in Sweden is worth up to SEK 150 billion in wagers each year. The report emphasizes that this is comparable to the cost of Sweden’s entire primary school system. Net revenue is estimated to be between SEK 3.9 and 7.7 billion annually.

Further, the report highlights that gambling on unlicensed gaming sites, such as crypto casinos, has a lower channelization rate than other forms of betting. It suggests that such a lack of regulation and accountability in casino markets raises huge concerns surrounding responsible gambling measures, fair gaming practices and player protection.

The ATG report highlights that 17 out of the 20 largest unlicensed gambling sites use identical platform providers as licensed operators even though this should not be possible. In addition, six of those researched allow direct deposits and withdrawals with SEK using BankID. Additionally, 10 percent of the top 20 unlicensed sites were on the Swedish Gambling Authority’s blacklist but continue to operate.

One specific example provided is a site operated by Infinza Limited, which attracted nearly 150,000 visitors during the fourth quarter of 2024 alone.

Skarplöt said: “We want people to enjoy gambling in a safe and regulated environment. That is why we will continue our fight against unlicensed operators until legal gambling dominates the Swedish market.”

Gambling Reform On Its Way

The government seems to be aware of the problem, having recently announced a lead investigator for the upcoming Gambling Act Review.

The Chairman and Head of Swedish Board of Consumer Complaints, Marcus Isgren, has been given a deadline of 17 September 2025 to lead an investigation and report its findings.

The review will examine measures to make it tougher for illegal operators to function in the Swedish market. The government’s statement implies that they will change the “directional criterion that determines whether an online game requires a license in Sweden.”