Sweden Considers Stronger Measures On Gambling With Credit
The Ministry of Finance in Sweden has recently put forward proposals for a more comprehensive ban on using credit to gamble in the country. The existing Gambling Act in Sweden already prohibits licensed operators from offering or providing credit to players. However, the government aims to strengthen these measures by implementing a more in-depth ban. This initiative is driven by the goal of preventing gambling-related financial difficulties and reducing the risk of over-indebtedness among individuals.
Under the proposed measures, operators and gambling agents would be prohibited from processing deposits or bets financed by credit. This ban would apply regardless of how and when the credit is provided, including transactions made with credit cards. The Ministry of Finance believes that removing the option to gamble with credit will significantly reduce the risk of individuals facing financial hardships due to gambling.
In addition to the credit ban, the proposals also emphasize the importance of duty of care measures implemented by licensees in Sweden. The Ministry suggests that the national regulator, Spelinspektionen, should be authorized to set requirements for these action plans. By doing so, the government aims to ensure that operators prioritize responsible gambling practices and take necessary steps to discourage excessive gambling.
Minister of Financial Markets, Niklas Wykman, highlighted the rationale behind this measure, stating, “Gambling for money on credit can lead to great financial difficulties. Therefore, we are now stopping that possibility. It is not reasonable for gambling companies or gambling agents to contribute to individuals taking such large risks.”
If approved, the proposed measures will begin to come into effect from September 1st of this year. However, the full credit ban will not be implemented until April 1st of the following year. This timeline allows operators and gambling agents sufficient time to adjust their processes and comply with the new regulations.
Spelinspektionen, the Swedish gambling regulator, has long supported heightened measures to prevent consumers from using credit to gamble. In response to a government study on risky lending, Spelinspektionen previously called for a complete ban on gambling with credit cards. The regulator argued that licensees who encourage players to borrow are failing in their duty of care obligations. In a survey conducted by Spelinspektionen, it was found that approximately 60% of licensees offered payment options via credit cards.
Sweden would join other major markets in implementing a ban on gambling with credit if the proposed measures are approved. The United Kingdom, for example, introduced a similar ban in April 2020. The UK Gambling Commission reported that the implementation of the ban went smoothly and did not result in any unintended consequences. In September of the same year, Australia’s government also proposed a ban on the use of credit cards for gambling purposes. Norway, Sweden’s Nordic counterpart, already has a similar ban in place.
