A proposed law in Sweden aims to prohibit the use of credit cards for gambling.

To enhance consumer protection against financial hardship and minimize the risk of excessive debt, a new proposal in Sweden aims to prohibit gambling on credit.

Last week, a proposal was announced to amend the Swedish Gambling Act by expanding the restrictions on gambling with credit. Currently, the regulatory framework forbids gambling with credit, mandating operators to exercise a duty of care, which effectively prohibits gambling licensees and their employees from offering credit to customers. Despite these regulations, the Swedish Government, Regeringskansliet, identifies a strong link between problem gambling and over-indebtedness. To tackle these issues, the new draft bill suggests banning the use of credit cards for gambling. This significant change would prohibit credit card payments if it is immediately evident at the time of the transaction that a credit card is being used. The credit card ban would apply to both retail and online gambling. Furthermore, under the proposal, gambling licensees and agents would be prohibited from accepting bets if they know that a customer is funding their gambling activities with credit. Additionally, the draft bill forbids gambling licensees or agents from allowing players to enter credit agreements with credit providers or other companies when purchasing games.

The new proposal introduces specific exemptions for lotteries. The Swedish Gambling Authority, the country's gambling regulator, will have the authority to grant exemptions for lotteries or other activities that benefit the public and are not politically affiliated. Additionally, exemptions from the rules prohibiting gambling on credit may be given for other games or subscription lotteries, provided there are long-term safeguards in place. If approved, the proposal aims to implement the ban on gambling with credit starting April 1, 2026. According to the government's plan, gambling license holders and agents must take steps to dissuade customers from gambling on credit. This requirement applies to both online and physical gambling locations and can be fulfilled through website banners or in-store messages. The government has emphasized that these measures should be straightforward and cost-effective, eliminating the need for new technical equipment. Instead, existing technology should be used to block credit card transactions for gambling without disrupting the sale of other goods.