Sweden Continues Its Campaign Against Unlicensed Operators

Sweden Continues Its Campaign Against Unlicensed Operators

Sweden’s gambling authority has once again acted to tighten control over its online gambling market by banning three more operators found to be offering services without the necessary national licence. The most recent decision focuses on Curaçao-based Liquid Entertainment NV, the company behind the site duelbits.com, which investigators determined was accessible to Swedish users and promoted through Swedish-language channels.

The ruling followed a supervisory case in which the regulator examined the website’s set-up and its marketing practices. Inspectors found that Sweden was listed as the default country during registration when accessed from a Swedish IP address. Additionally, parts of the website could be navigated in Swedish, creating the impression that the platform was tailored for local users. The regulator also found that marketing aimed at Swedish consumers had been carried out through affiliate sites, online content creators, the streaming platform Kick, and advertisements placed through Google.

According to Spelinspektionen, the absence of any system designed to prevent Swedish users from registering was a decisive factor in the decision. By allowing residents to open accounts freely, the company was judged to be in direct violation of the Swedish Gambling Act, which requires all operators to hold a licence before targeting the domestic market.

The order against Liquid Entertainment forms part of a wider series of actions by the regulator in its ongoing effort to limit the impact of unlicensed gambling. Since Sweden re-regulated its market in 2019, Spelinspektionen has repeatedly emphasised the importance of maintaining what it calls a high level of “channelisation,” the term used to describe the proportion of players using licensed operators rather than unregulated ones. Ensuring that the majority of gambling takes place within the licensed system is considered essential not only for consumer protection but also for the stability of state revenues linked to gambling taxes.

The enforcement against duelbits.com highlights the regulator’s growing concern over how unlicensed companies utilize affiliate marketing and digital platforms to attract Swedish customers. Curaçao-registered operators in particular have appeared frequently in supervisory cases, reflecting a broader European challenge. Companies based there often operate internationally without seeking local authorisation, leaving national regulators to monitor, investigate, and issue bans whenever evidence emerges that domestic players are being targeted.

Although banning orders do not physically block websites, they serve as a clear legal warning and provide grounds for further sanctions if operators persist in seeking access to the Swedish market. They also send a message to affiliates and advertisers that directing traffic to unlicensed platforms could result in regulatory scrutiny. For licensed operators in Sweden, such enforcement is viewed as necessary to ensure fair competition. These companies are bound by strict rules on advertising, responsible gambling, and taxation, and they argue that unlicensed operators erode consumer trust while avoiding the financial and compliance burdens placed on those within the system.

The Swedish approach to enforcement mirrors steps taken in other European jurisdictions where regulators face similar challenges. The Netherlands, Germany, and the United Kingdom have all intensified measures against offshore operators in recent years, combining fines, bans, and, in some cases, technical measures such as payment blocking or internet restrictions. Sweden has so far relied mainly on supervisory investigations and banning orders, although industry observers continue to debate whether stronger measures might be required to deter persistent violations effectively.

For Spelinspektionen, the latest bans underline its commitment to actively monitoring the online environment and intervening where necessary. By highlighting specific indicators, such as default country settings, language options, and targeted marketing, the regulator is establishing a framework for what it considers clear evidence of unauthorized targeting. This creates greater clarity for the industry and signals to unlicensed operators that their methods of reaching Swedish users are being tracked.

Looking ahead, the regulator is likely to face continued pressure to maintain high levels of channelisation in the Swedish market. Licensed operators have consistently argued that enforcement must be accompanied by policies that make the regulated market attractive enough to keep players from turning to unlicensed alternatives. This involves a balance between strict controls and ensuring that licensed platforms remain competitive in terms of product offering and accessibility.

The decision against Liquid Entertainment demonstrates how regulators are increasingly compelled to scrutinize not only the content of gambling sites but also the broader ecosystem of affiliates, marketing strategies, and online platforms that facilitate access to unlicensed play. It reflects the reality that online gambling regulation extends beyond operators themselves and involves monitoring the digital channels through which players are reached.