Crypto Betting Faces More Barriers as Sweden Pushes Stricter Gambling Laws

The government of Sweden has appointed a lead investigator for the recently announced Gambling Act review in the country.

Marcus Isgren, Chairman and Head of the Swedish Board of Consumer Complaints, has been appointed as the investigator and given a deadline of 17 September 2025.

The review will look into measures that could make it “tougher” for sites to operate illegally in the Swedish market. The intention is to review how the scope of the Swedish Gambling Act can be expanded, and proposals be brought forward that can stop unlicensed players in the Swedish market.

One example cited in the government statement surrounds changing the “directional criterion that determined whether an online game requires a license in Sweden.”

How Sweden’s Gambling Laws Are at Odds with Fintech’s Crypto Adoption

Gambling with cryptocurrency in Sweden is currently made difficult by narrow legislation. As is typical of legislators globally, a rise in consumers using sites to gamble with digital currencies is met with stricter prohibitions. This is instead of considering broadening legalization and reaping the benefits of an expanded gambling market.

One of the success stories of Swedish fintech, Klarna Bank AB plans to “embrace crypto” according to an the company’s CEO Sebastian Siematkowski. He posted on social media platform X stating: “Ok. I give up. Klarna and me will embrace crypto. More to come!”

Klarna competitors such as PayPal and Revolut have already welcomed stablecoins and crypto to their platform. He continued: “It still feels historic. Last large fintech in the world to embrace it. Someone had to be last. And that’s a milestone as well of some sort.”

Isgren will be in charge of analyzing and considering how the scope of gaming law can be clarified and extended. The review comes after Branschföreningen för Onlinespel (BOS) or the Swedish Trade Association for Online Gambling, published an open letter calling for loopholes that enable illegal operators to operate to be closed.

The Trade Association’s Secretary, Gustaf Hoffstedt, said in the letter: “We would like the government to take the initiative to change the scope of application of the Gambling Act so that it also becomes illegal to passively receive Swedish gambling consumers.”

Upon hearing of the government’s plans for a review, Hoffstedt welcomed the decision, stating: “We have advocated for an amendment to the Gambling Act in this regard ever since the reregulation of the Swedish gambling market in 2019.”

He continued: “It became apparent fairly immediately after the reregulation that the licensed gambling market was leaking like a sieve. This was partly because many unlicensed gambling companies were able to continue to accept Swedish gambling customers.”

Sweden Gambling Law Reforms: Protection or Overregulation?

The government’s messaging couldn’t be further from the Klarna CEO’s. Government Finance Minister Niklas Wykham commented: “We’re going to stop rogue gaming companies that use vulnerable customers.”

“We do this by changing the game law so that it becomes more appropriate. This is one of the single most important measures for a safer and healthier gambling market,” he continued.

Despite Sweden recognizing cryptocurrency, there seems to be little hope of a legalized crypto casino in the near future. The government and vociferous trade bodies are pushing for further prohibition rather than potential legalization as the market continues to become predominantly digital.