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The Swedish Gaming Authority (SGA) has said it approves the Ministry of Finance's proposal to expand a ban on gambling on credit while advocating for more clarity after flagging some concerns.
In its response to the Ministry of Finance dated May 20, the SGA said: “Regarding the reported consequences of the proposal, there is no analysis of how public lotteries that sell tickets digitally are affected by the ban on payment by credit card. The SGA further wishes to highlight any ambiguity regarding the scope of the proposed credit ban."
The SGA agrees with prohibiting licensees and gambling agents from allowing gambling using credit, including credit cards, as well as the scope of the prohibition, which covers all forms of licensed gambling and the power it has been given to grant exemptions in exceptional cases.
Trade group the National Gaming Industry Association (Sper), whose members include state-owned Svenska Spel, pointed out in its consultation response that the proposal “is unclear and leaves room for interpretation, which means that it is not possible to predict the scope and consequences of the same”.
“Sper therefore disapproves of the proposal in its current form. Furthermore, Sper points out that the consequences for gambling companies, gambling agents and individuals are significant and thereby more extensive than what appears in the promoria,” Sper said.
Sper is concerned that the regulations will heavily affect licensed operators and run the risk of driving consumers, including vulnerable players, to the unlicensed markers.
The Ministry of Finance put forward a memorandum advocating for a more comprehensive ban on gambling with credit, including a credit card ban, in February 2024.
The memorandum also reiterates that Swedish licensees are subject to a duty of care, meaning they must have an action plan to discourage excessive gambling.
The constitutional amendments in the memorandum are proposed to enter into force on September 1, 2024 and the credit ban is prosed to enter into force on April 1, 2025.
Sweden’s Gambling Act already bans gambling firms from providing credit to stake bets.
However, in July 2023, a report was handed to Erik Slottner, the minister of civil affairs, calling for implementing a new system for people in debt and credit registers to improve existing conditions for credit checks.
The report advised against a credit card ban, prompting the SGA to call on investigators to “reconsider their stance”.
