Spelinspektionen: Credit Card Ban Isn’t Needed at the Moment

Sweden’s gambling regulator, the Spelinspektionen, has published a consultation response relating to SOU 2023:38, saying that gambling companies should not encourage their players to loan money. However, the regulator is not convinced that further measures are needed at this moment.

SOU 2023:38 is a series of proposed measures that concern the extension of the credit ban in the Gambling Act. Under Swedish law, licensed operators and gambling agents in Sweden are prohibited from promoting loans to their players as a way for them to continue playing. Sweden, however, is exploring opportunities for extending the measure and prohibiting the use of credit cards in online gambling.

The authority noted that the current laws already prohibit licensees from promoting credits to their players. Still, the Spelinspektionen agreed that the prohibition should be communicated more clearly.

However, the authority noted that, since the current law already prohibits licensees from promoting credits to players, an extension of the measure seems unnecessary. Despite that, the regulator plans to continue investigating the efficiency of the credit card bans in Norway and the United Kingdom.

For reference, around 60% of the 50 licensed operators in Sweden offer accept credit cards as a payment option.

The Spelinspektionen also commented on the proposed introduction of a system for debt and credit registers (Skri register) that would provide additional insights into the matter.

Other News about the Swedish Market

In other news, the Spelinspektionen just handed a huge fine to Videoslots, claiming that the operator has violated Sweden’s AML and CTF rules. The failings caused the regulator to issue a penalty fee of $809,300 because of the seriousness of the operator’s violations.

For reference, the gambling authority has been investigating Videoslots’ business since 2021 to confirm whether the company secured sufficient knowledge of its customers. Unfortunately, the Spelinspektionen learned that the gambling company’s efforts were lacking and that its negligence may have facilitated money laundering and terrorism financing.

Several days ago, the Spelinspektionen published a report on the ongoing review of how collaboration with the Finansinspektionen (Financial Supervisory Authority) can strengthen the efforts against illegal gambling.

This came after an earlier measure proposed allocating SEK 10.8 million (around $970,000) to the Spelinspektionen’s 2024 budget and another SEK 4.5 million ($400,000) to the Finansinspektionen in 2024, helping the two regulators crack down on unlicensed gambling.

The two authorities are currently exploring opportunities for blocking payments to and from offshore companies.