The Swedish Ministry of Finance’s ban on gambling with credit has drawn fire from the organization that represents online gaming operators, CDC Gaming Reports wrote February 26.
The proposed credit ban would take effect September 1, 2024.
The Swedish Trade Association for Online Gambling (BOS) has taken a stand against the credit ban, which the Ministry defends as a way of preventing players from going into debt.
The Ministry’s proposal tasks the Swedish Gambling Authority (Lotteriinspektionen) with creating regulations to carry out these preventive measures. Its increased authority would take effect in April 2025.
BOS has pointed out that the Ministry’s ban is diametrically opposed to the 2023 stand it took when it stated: “there are not sufficient reasons to introduce a ban on paying for gambling with credit cards.”
BOS added, “The view from both banks and card issuers is that it would mean great difficulties to prohibit payment with a payment card when a credit is linked to such a card.”
BOS Secretary General Gustaf Hoffstedt declared, “It is sad that the government does not listen to its own expertise and instead proposes a ban on credit cards when gambling, contrary to what the government investigation has concluded.”
He added that the government is being inconsistent since it doesn’t propose a similar ban on alcoholic beverages but notes that such beverages are sold under a government monopoly.
He warned that such a ban will encourage players to enter the black market. “The risk is great that unlicensed gambling will overtake and gain a larger total market share than licensed gambling in 2024. The government needs to change its footing and show that it is on the side of the licensed gambling companies and consumer protection.”
