Sweden’s gambling authority, Spelinspektionen, has called for a ban on gambling by credit card. This call comes as a dissenting response to a government investigation on risky lending.
The ministry of justice published a report in July titled “Enhanced Consumer Protection Against Risky Lending and Over-indebtedness,” and interested parties were invited to comment on its proposals. While the investigation concluded that the reasons against introducing a credit card gambling ban outweigh the reasons for a ban, Spelinspektionen believes that a ban could have significant benefits in combating over-indebtedness.
The report explored various measures to protect consumers against risky lending and over-indebtedness. It proposed the establishment of a system for debt and credit registers to monitor borrowing activities. Nevertheless, the report acknowledged the importance of addressing the issue of encouraging players to borrow, which is already prohibited by the Gambling Act.
Spelinspektionen has taken a different position on the matter. The authority believes that the investigation did not sufficiently consider the signal value a ban could have in clarifying that gambling with borrowed money is undesirable in society. Spelinspektionen has reiterated its legal position that license holders should not encourage players to borrow, as it goes against their duty of care outlined in Section 1 of the Gambling Act. A recent survey of licensees revealed that approximately 60% offered payment by credit card, further highlighting the need for stricter regulations.
Camilla Rosenberg, the director-general of Spelinspektionen, suggests that the legal text should be amended to clarify the situation. While she acknowledges the practical challenges of implementing a ban, Rosenberg believes that Sweden could follow the lead of countries like Great Britain and Norway, which have already implemented credit card gambling bans. She emphasizes the importance of considering the signal value of a ban and its potential to discourage gambling with borrowed money.
Spelinspektionen argues that a credit card gambling ban could have several positive effects. Firstly, it would send a clear message that gambling with borrowed money is not acceptable. This signal value can help combat over-indebtedness and the associated social problems.
Secondly, a ban would align Sweden with other countries that have already implemented similar measures, fostering a coordinated approach to consumer protection. Lastly, a ban would support the majority of the proposals outlined in the ministry of justice’s report, including the establishment of a system for debt and credit registers.
Additionally, alternative payment methods would need to be readily available to ensure a smooth transition for consumers. These challenges highlight the importance of thorough planning and consultation before implementing any regulatory changes.
One area where Spelinspektionen and the ministry of justice’s report align is the significance of debt and credit registers. Both parties recognize the importance of an efficient and robust credit check system to combat over-indebtedness among individuals with gambling problems. The proposal to establish a system for debt and credit registers (SKRI register) received widespread support. However, careful consideration must be given to the detailed requirements for credit information companies allowed to maintain the SKRI register.
