Ministry of Finance Proposes A New Ban on Gambling on Credit
SWEDEN (The Ministry of Finance has today forwarded a memorandum with proposals to introduce a more comprehensive ban on paying with credit when gambling for money. The purpose of the proposal is to prevent gambling for money from leading to indebtedness.
In recent years, the risks of gambling have attracted increasing attention, and gambling addiction is today a public health problem. Gambling problems and over-indebtedness have a very close relationship. People with gambling problems run an increased risk of over-indebtedness and people who are over-indebted run an increased risk of suffering from gambling problems.
– Gambling for money on credit can lead to great financial difficulties. Therefore, we are now stopping that possibility. It is not reasonable for gambling companies or gambling agents to contribute to individuals taking such large risks, says Minister of Financial Markets Niklas Wykman.
It has long been prohibited under the Gambling Act for gambling companies with a Swedish license and for gambling agents to offer or provide credit for stakes in gambling. In order to counteract indebtedness as a result of gambling for money in a more effective way, it is now proposed that this be replaced with a more comprehensive credit ban.
According to the ban, it shall not be permitted for these gambling companies and gambling agents to receive payments financed with a credit – regardless of how and when the credit has been provided. It includes, among other things, that bets for money may not be paid with credit cards.
Gambling companies with a Swedish license are subject to a duty of care which means that they must discourage excessive gambling. They must have an action plan for the implementation of that work. In the memorandum, it is proposed that the Gambling Inspectorate should be authorized to set requirements for what these action plans should contain. It is something that was requested by the Swedish Gaming Authority and which aims for the license holders to carry out the duty of care in a better way.
The constitutional amendments are proposed to enter into force on 1 September 2024 (the authorization) and 1 April 2025 (the credit ban).
SOURCE: Press release from the Ministry of Finance
