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Gambling: New landmark ruling from the Swedish supreme court

by Sofia Studencki and Martin Fogeman

Published:

Dices

Gambling remains, as of yet, non-harmonized by the EU and each member state is free to regulate gambling as they see fit. Swedish gambling laws are, compared to many other member states, considered strict. Although it was partly de-regulated with the introduction of the new law on gambling in 2018, the framework remains prohibition-based. All non-state issued gambling is prohibited, unless the proper permits are in place. This system is overseen and enforced by the Swedish Gambling Authority ("SGA"). Below follows recent updates within the Swedish gambling sector

Supreme Court ruling on compulsive gambling

The Supreme Court of Sweden has issued a landmark ruling in a case involving Betsson and an individual suffering from gambling addiction. At the core of the dispute was whether agreements entered into by a compulsive gambler could be considered invalid under Swedish contract law. While the lower court rejected the claim in its entirety, the Court of Appeal later ordered Betsson to repay approximately SEK 5.8 million and pay SEK 10,000 in damages for mental distress. The Supreme Court has now largely upheld that decision, finding that Betsson, based on behavioral data, should have recognized the signs of compulsive gambling. It concluded that fulfilling the contract in such circumstances violated principles of good faith and honor, rendering the agreement void under Section 33 of the Swedish Contracts Act.

This precedent marks a significant application of a century-old legal provision that had not previously been invoked in modern case law. While the ruling directly impacts gambling operators, its implications may extend far beyond the gaming industry—potentially affecting a wide range of regulated sectors that rely on user data and standardized contracts. By establishing new expectations for how companies must respond to behavioral indicators, the decision raises important questions about the evolving responsibilities of digital service providers in the era of data-driven customer engagement.Top of Form

Gambling and marketing by influencers

The SGA has recently investigated influencers' marketing of gambling services, mainly on the streaming platform Twitch. Twitch is known for live streaming games played by individuals, including those classified as influencers, and the audience largely consists of minors. The marketing in question consisted of links and pictures directing users to websites offering gambling without the licenses required by the Swedish Gambling Act. Both the fact that the marketing was directed towards minors, and the provider of gambling had no license, was aggravating. However, no penalties were issued by the SGA, as the influencers removed all the marketing content in question. This case proves that SGA is well-informed of below-the-line marketing activities. 

Proposal to regulate gambling on credit (referral 2018:1138)

The Swedish government has proposed new regulation which would prohibit financing online gambling with credit. It is already prohibited for actors with a gambling license to offer credit of their own to customers. The proposed legislation would extend this responsibility, requiring licensed operators to also prohibit offering any payment options which involves, or could involve, credit. This responsibility includes ensuring customers do not finance gambling with credit, meaning licensed operators may need to decline suspected credit-financed payments.

A decision reversed due to lack of guidelines (case 2812-24)

In early 2024, the SGA issued a warning and a fine to an operator which they deemed did not meet the requirements on proper care (Sw. Omsorgsplikt) regarding players considered to be of high risk for gambling addiction. The SGA 's decision was appealed to the administrative court in Linköping, where it was reversed in June 2025. The court motivated the reversal with the fact that the SGA had received instructions to issue further regulation regarding what constituted proper care. Until such time that the SGA has provided further regulation, restraint was necessary when evaluating if proper care has been given, according to the court. The SGA has appealed against the court's decision and are awaiting trial permit.

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