• New draft legislation seeks to better protect gamblers from over-indebtedness
• The proposal seeks to prohibit gambling with credit cards and reduce the possibility of customers using credit for gambling
• If approved, the proposal would come into effect next year, while licensees are expected to make changes without the need for technical investments

In an effort to better protect consumers from financial difficulties and reduce the risk of over-indebtedness, a new proposal in Sweden seeks to ban gambling on credit.

A strong link between gambling and over-indebtedness results in new rules

Announced last week, the proposal calls for changes to the Swedish Gambling Act, extending the rules related to gambling on credit.

The existing regulatory framework includes a ban on gambling with credit.

However, that ban effectively serves as an extension of the operators' duty of care and effectively prohibits gambling licensees or their employees from offering credit to customers.

Despite the existing rules, the Swedish Government, Regeringskansliet, considers that there is a "strong link between problem gambling and over-indebtedness."

To address such challenges, the new draft bill proposes the prohibition of gambling with credit cards.

This notable change would ban credit card payments "if it is immediately apparent at the time of purchase that the payment is a credit card payment."

The ban on gambling with credit cards is going to affect retail and online gambling activities.

In addition, per the proposal, gambling licensees and agents would not be permitted to accept bets if they are aware that the customer in question is financing their gambling activities with a credit.

The draft bill also prohibits gambling licensees or agents from permitting players to enter into credit agreements with credit providers or other companies when purchasing games.

The change won't require investment

The new proposal includes certain exemptions applicable to lotteries.

The country's gambling regulator, the Swedish Gambling Authority, would be permitted to grant exemptions for lotteries or other "public benefit activities that are not partly political."

On the other hand, exemptions from the rules about gambling on credit may also be granted for other games or cases of subscription lotteries, as long as long-term protections are in place.

If the proposal is accepted, it seeks to enforce the new ban on gambling with credit as of April 1, 2026.

According to the government's proposal, gambling licensees and agents need to take measures to discourage their customers from gambling on credit.

This would apply to both online and retail gambling and can be achieved via websitebanners or in-store messages.

"The measures should be simple and cost-effective, and there is no requirement to acquire new technical equipment – ??instead, they should use existing technical equipment that enables the blocking of credit cards for gambling without affecting the sale of other goods," the Swedish Government explained.

Image credit: Pixabay.com