Denmark’s Gambling Framework Offers Lessons for Sweden

Denmark’s Gambling Framework Offers Lessons for Sweden

A new comparative study commissioned by the Swedish Trade Association for Online Gambling (BOS) has reignited the debate on regulatory effectiveness in the Nordic gambling sector, drawing attention to Denmark’s more adaptable framework as a potential model for Sweden. The report, produced by the law firm Nordic Legal, explores the structural and cultural contrasts between the two neighboring jurisdictions and offers a series of recommendations for improving Sweden’s regulatory framework.

The study argues that Denmark has achieved greater stability in its regulated gambling market, supported by a consistently high channelisation rate, the proportion of players engaging with licensed operators rather than unregulated ones. This success, according to the findings, reflects both policy design and regulatory attitude. Sweden, by contrast, continues to fall short of its 90 percent channelisation target, with the report warning that without substantial reform, the gap is unlikely to close.

BOS has presented 18 recommendations drawn from the study, urging policymakers to reassess the balance between restriction and competitiveness in Sweden’s market. The report underscores that a high channelisation rate remains essential to the integrity of a regulated gambling environment, as it ensures player protection and tax compliance while discouraging participation in offshore platforms.

One of the central themes emerging from the study is the differing regulatory culture between the two countries. Licensees interviewed for the report described Sweden’s gambling authority, Spelinspektionen, as adopting a more punitive and enforcement-driven approach, marked by what some operators characterized as a “culture of fear.” In contrast, Denmark’s gambling authority was portrayed as more dialogue-oriented, maintaining open communication channels with operators and applying a measured escalation process when addressing noncompliance.

This distinction, according to the report, has contributed to a stronger cooperative dynamic in Denmark’s market, where regulatory adherence is achieved not only through sanctions but also through guidance and mutual accountability. The Danish model’s use of graduated enforcement measures, ranging from warnings to fines before resorting to license suspensions, has been identified as a mechanism that encourages compliance without eroding industry confidence.

Gustaf Hoffstedt, Secretary General of BOS, emphasized that Sweden could benefit from studying Denmark’s policy framework in greater depth. He noted that while some recommendations concern rule-based reforms, such as re-evaluating bonus and loyalty restrictions, others address broader cultural aspects, including the relationship between regulators and licensees. According to Hoffstedt, fostering a more constructive regulatory dialogue could enhance both compliance and consumer protection.

The study further challenges the notion that repressive instruments such as internet service provider (ISP) blocking or payment blocking can effectively resolve channelisation challenges on their own. It argues that these measures, while useful in limiting unlicensed activity, cannot substitute for a market that allows regulated operators to offer a competitive product range. The authors argue that restrictive bonus limits and loyalty regulations have, in some instances, rendered licensed platforms less appealing to players, thereby indirectly supporting the persistence of the offshore market.

Despite Denmark’s comparative success, the report acknowledges that even its regulatory framework faces new pressures. Recent political discussions in Copenhagen have focused on reforming gambling laws amid growing public concern over problem gambling. Denmark’s Minister for Taxation, Rasmus Stoklund, has indicated that the government is evaluating possible restrictions on gambling advertising and marketing. Official data suggests that around half a million Danes encounter gambling-related difficulties to some degree, with over 60,000 individuals registered with ROFUS, the national self-exclusion system.

The BOS report positions these developments as part of a wider Nordic dialogue on how to balance regulatory control with market viability. It notes that Denmark’s success has already influenced Finland’s plans to transition from its current monopoly model to a regulated online gambling market by 2027. However, Sweden’s situation, the study suggests, may require a more comprehensive reevaluation, one that moves beyond incremental adjustments to address structural and cultural dimensions of governance.

The analysis concludes that Sweden’s continued reliance on strict enforcement mechanisms risks undermining long-term regulatory stability. Instead, BOS urges policymakers to consider a more proportionate model, one that acknowledges market realities while maintaining oversight and protection standards. The association argues that by recalibrating its regulatory approach and drawing lessons from Denmark’s dialogue-based model, Sweden could strengthen the licensed market, thereby improving player safety and achieving its channelisation objectives more effectively.