Sweden wants to ban players from wagering with borrowed money
Sweden is stepping up its efforts to protect people from gambling-related debt by tightening the rules around gambling on borrowed money. On 12 June, the government put forward a new proposal called “A new ban on gambling on credit”, aimed at closing the loopholes in the current system.
The proposed regulations, now referred to the Council on Legislation, seek to “create a safer and more sustainable gambling market”, according to both the and the Swedish Gambling Authority (Spelinspektionen).
“By preventing gambling from being financed with credit, the government wants to reduce the risk of over-indebtedness and protect consumers from ending up in financial difficulties,” the Ministry of Finance stated in its press release.
Broadening the scope of the credit ban
Sweden has had a credit ban in place for some time under the Gambling Act, but the rules have only gone so far. As the Ministry of Finance explained, the current law only covers credit offered directly by gambling operators or their agents. That means players have still been able to get around the ban by using outside lenders or credit cards—leaving a gap the new proposal aims to close.
“To counteract indebtedness due to gambling, more comprehensive regulation is required,” the Ministry explained.
The government’s proposal would tighten the current credit ban with more rigid rules that stop gambling companies and their agents from allowing any kind of gambling funded by credit. Some of the key changes include:
- Prohibiting licensees and gambling agents from enabling players to “enter into credit agreements with other parties when purchasing games, for example by linking to credit providers in connection with online games.”
- Banning the acceptance of bets when it is known that the player is using credit to fund their gambling.
- Forbidding payment with credit cards if it is “immediately apparent at the time of purchase that the payment is a credit card payment,” applicable both online and in physical venues.
Spelinspektionen’s views
The and supported the decision, stating: “The aim is to create a safer and more sustainable gambling market.” In its own release, Spelinspektionen reiterated the government’s intention to “reduce the risk of over-indebtedness and protect consumers from getting into financial difficulties.”
The Authority also confirmed that licensees would be responsible for taking preventative steps. That could mean putting up clear warning signs in betting shops or displaying straightforward messages online.
The Ministry stressed that these measures should be “simple and cost-effective” and won’t require companies to invest in new technology. Instead, they should make use of existing technology that allows the blocking of credit card payments specifically for gambling purposes—without affecting the sale of non-gambling goods or services.
Exceptions for charitable lotteries
To avoid unintended harm to public benefit activities, the government has built flexibility into the proposal. Under special circumstances, such as “subscription lotteries and additional games”, Spelinspektionen would have the Authority to grant exemptions from the credit ban—“provided that protective measures are taken to limit the credit amount.”
