Sweden is implementing a ban on the use of credit cards when gambling. This has been successfully executed elsewhere but is not without possible consequences. We discuss them in the article below.
The Swedish Gambling Authority has welcomed a move to ban all forms of credit gambling by spring this year. That will involve the use of credit cards to make wagers and top-up casino accounts. Gambling credit is already forbidden under the Gambling Act in the country. However, these new rules will take it one step further, essentially banning the use of credit on gambling websites. No agents or operators will be able to process transactions that are financed by credit in any form. This includes cards.
Previous Bans on Credit
Many countries in Europe and beyond have already moved to blacklist the use of credit on gambling websites, including sportsbooks and online casinos. These countries include the United Kingdom, neighbouring Norway, Ireland and Australia. Despite these changes, many players continue to opt for casinos that accept Mastercard, which still provides secure transaction options within the regulated framework. Many of these operators also have robust safer gambling initiatives along with their customer service and game choices. It is also argued that credit card operators have set a limit already, based on what they think people can afford.
This was the thinking when the country had previously snubbed the idea of a ban on credit card gambling. In 2023, it released a statement that said “There are not sufficient reasons to introduce a ban on paying for gambling with credit cards”. The Ministry of Finance later released a contradictory statement in relation, that noted: “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.”
Further rules that place a duty on operators will also be added. This will come in the form of new measurements to discourage excessive gambling, though what these will be remains to be seen.
Calls for Clearer Legislation
The only area where this has become unclear is regarding public lotteries, and this is something the Swedish Gambling Authority has called for increased clarity on. Many of the country’s lotteries, which often raise money for charitable causes, sell tickets through online gateways that often involve the use of credit cards. It has not been noted if this ban will also come to encompass these forms of gambling.
Regulators also wanted further clarification on the term “credit” itself, and what its definition will be. The ban currently is aimed at those using account credits, such as cards. However, they also argued that credit which is attached to bank accounts could also fall under this. For example, overdraft facilities may count as credit.
This could also cover payment with debit cards, as many often have credit space linked to them. Mastercard is one company that offers this. Thus, licensees and agents must check if a debit card has credit, according to the regulator.
Furthermore, they have said that the regulations hold no information on whether operators must have technical information or agreements with payment service providers like Mastercard. This would require them to ensure no credit is used through debit card facilities. Payment operators and major gateways have noted that it would be extremely hard to block a transaction of this type when they are linked.
In the United Kingdom, bans on credit cards for gambling operators were introduced in 2019. This has also come to being in Australia. However, like others around the world, it did not include lotteries which are often all under different requirements.
Opposition to the Ban
Not all voices are in favour of the ban. Gustaf Hoffstedt, a politician in the country, is vocally against the idea. He believes this will turn people towards unlicensed operators, often working offshore, who allow payment through credit cards. This market has a 41% share of the national gambling market, which he believes will increase after this. His fear is that this will increase, with unlicensed markets overtaking licenced ones in the country.
However, this has not always been the case when these laws have been introduced in other countries. For example, in the United Kingdom, only around 2% of those who gamble use unlicensed, offshore gambling platforms. The Gambling Commission also later released a statement saying the implementation had gone smoothly and had not led to “Unintended consequences”. While this was not developed, it is assumed that it meant a rise in those using illegal platforms.
Many people overlook the fact that online gambling itself is in its stage of infancy, though it seems to have been around for many years. There is also no shame in the amendments and changing of laws to protect people as more studies and information become available. This is all Sweden is doing: Amending what it perceives as its errors in gambling legislation, and following concepts that have worked in other countries. This ensures that gambling remains safe, secure, and most of all enjoyable for those using it.
