Sweden Seeks Further Restrictions on Gambling with Credit

Sweden is eyeing a ban on gambling with credit as lawmakers hope to minimize gambling harm in the country. Although a similar ban exists, its scope and, by extension, its effectiveness are currently limited.

The Current Ban Is Insufficient, Authorities Argue

The government emphasized that the country’s active ban on gambling with credit, which is a part of the Gambling Act, is very limited since it only restricts direct credit card transactions. The ban, however, does not cover bets funded with borrowed or credited money, effectively allowing users to easily circumvent it.

According to Finance Minister Niklas Wykman, gamblers should not be allowed to play with money they have borrowed. The new legislation therefore seeks to establish stricter limits and enforce measures to make sure that they are followed.

Among other things, operators will be strictly prohibited from directing consumers to credit agencies or accepting bets from players they know are gambling with borrowed money. Per the new rules, both online and brick-and-mortar casinos will be prohibited from processing credit card payments.

Operators will also need to take steps to dissuade players from gambling with borrowed money, including placing warning signs. The government promised that it doesn’t plan to enforce costly measures that would increase operators’ expenses.

Spelinspektionen Wishes to Minimize Gambling-Related Harm

As mentioned, these proposed rules seek to bring down Sweden’s gambling harm rates and shield consumers from harm.

However, the government has also planned to make certain rare exceptions for certain products. For example, lawmakers are considering allowing lotteries that contribute to the public and good causes to offer limited products where players can play on credit. Subscription-based games would be other candidates for exemptions, as long as they have strong safeguards and a cap on credit usage in place.

All exceptions will be closely overseen by the Spelinspektionen, which will make sure that the financial harm risk for players has been minimized. The regulator is among the chief proponents of this ban, citing significant concerns about the state of the market and the lax rules on gambling with borrowed money.

Sweden Increased Oversight of Influencers Promoting Illegal Gambling

In the meantime, the Spelinspektionen just increased its oversight of content promoting online gaming, forcing Swedish influencers to stop promoting illegal gambling platforms. The move came as a broader pushback against online media promoting unlicensed online casino content to players in Sweden, which was initiated after the regulator learned that eight of the top 10 Swedish content creators on Twitch were pushing illegal gambling to their audiences.