Sweden, known for its comprehensive regulatory landscape, is looking to tighten its grip on gambling activities further. The Swedish ministry of finance recently unveiled a more stringent set of regulations that extend the current credit gambling ban. This expanded ban aims to prohibit state operators, gambling agents, and anyone processing deposits or bets from accepting any form of credit, including credit cards. This move builds on the existing prohibition under the Gambling Act, aiming to offer a more detailed and effective approach against credit-fueled gambling.
The essence of the expanded ban lies in its coverage: whether the credit is provided directly, indirectly, at the point of transaction, or through any other means, it will be included under the new regulations. Moreover, licensees will have more stringent duty of care measures to help curb problem gambling behaviors. The ministry has proposed that Spelinspektionen, Sweden’s Gambling Authority, should be given the authority to outline what these preventive action plans should contain to offer better protection to vulnerable individuals.
In response to the ministry’s proposals, Spelinspektionen has expressed broad support for these tighter regulations. This follows the regulator’s earlier calls for a full ban on gambling via credit cards made back in November last year. Despite this support, the regulator has flagged several issues that need addressing to ensure the new rules are both effective and clear for all involved stakeholders.
One of the key concerns highlighted by Spelinspektionen is the potential for certain parties to be inadvertently exempt from the ban. For instance, the memorandum states that non-profit associations, which operate bingo games and lotteries, do not accept bank card payments and are thus not impacted by the ban. However, the regulator points out that public lotteries also operate through digital sales channels, which could still accept credit card payments indirectly. Therefore, it calls for specific measures to ensure that even digital transactions for lottery tickets are not conducted with credit, including credit facilitated by third-party providers.
“The memorandum lacks an analysis regarding the consequences that this situation may entail for the public benefit lotteries,” Spelinspektionen commented, highlighting a need for a thorough examination of the impact these new rules could have on various gambling operators.
Another area of concern is the ambiguity around the term “credit” as used in the proposed rules.
. Spelinspektionen points out that the extended ban talks about prohibiting consumers using account credits for gambling. By extension, credit tied to a bank account could also be interpreted as account credit. This has implications for license holders and gambling agents, implying they would need to ensure that debit cards are not used in a manner that taps into a credit facility. The existing proposals fall short on specifying the investigative duties required for licensees and agents, leaving a gap in enforcement mechanisms.
Moreover, the proposals do not address whether technical solutions or specific agreements with payment service providers are necessary to prevent these credit-linked payments through debit cards. Spelinspektionen interprets the current draft as implying that it is enough for the license holders and agents to disallow payments if they know, without special investigative measures, that these are financed by credit. But for enforcement to be truly effective, these ambiguities must be clarified and well-defined.
“The scope of the proposed credit ban regarding debit cards could, for the reasons stated, be specified more clearly,” said Spelinspektionen, underscoring the importance of precise and unambiguous regulations to ensure the effectiveness of the new laws.
Should Sweden press forward with the expanded ban, it will join several other major markets that have already implemented similar measures. The United Kingdom, for instance, announced a ban on using credit cards to gamble back in 2020, which has since been successfully integrated without causing significant unintended consequences. Similarly, Australia introduced the Interactive Gambling Amendment Bill in 2023, focusing mainly on banning the use of credit cards for gambling.
Norway, often seen as Sweden’s Nordic counterpart, also enforces a credit gambling ban, highlighting a regional consensus on the issue. Beyond Europe, Brazil has taken an even broader approach by banning gambling through both credit cards and cryptocurrency.
As Sweden deliberates on these proposed changes, it remains to be seen how the final regulations will shape up. With Spelinspektionen advocating for greater clarity and robust enforcement mechanisms, the aim is to create a safer and more responsible gambling environment for Swedish citizens. The next steps will undoubtedly be crucial in refining these proposals to ensure they serve their intended purpose effectively.
