The Swedish Gambling Authority (Spelinspektionen) has formally endorsed FI2024/00442, a government measure that seeks to prohibit the use of credit cards for gambling. This proposed ban has been under discussion for several months and has now garnered the regulator’s official support.
Camilla Rosenberg, director general of Spelinspektionen, stated that the authority believes the ban on gambling with credit should apply universally across all gambling forms. Additionally, the authority suggested the need for the ability to grant exceptions in certain cases.
In its official statement, Spelinspektionen affirmed its support for the proposal. However, the Swedish trade association BOS criticized the measure, arguing that it could severely impact the legal gambling marke. Despite this opposition, the regulator acknowledged that there is no conclusive evidence on how the measure would affect operators who sell tickets digitally.
One concern raised was the ambiguity regarding how the ban would impact players using account credits for wagers. Given that credits linked to a bank account are also considered account credits, Spelinspektionen noted that this could imply licensees must ensure that credit limits are not utilized for payments made with debit cards.
However, the original proposal does not mandate licensees to investigate such matters. Therefore, Spelinspektionen concluded that it does not interpret the current wording as requiring gambling companies to verify whether users’ debit cards have a credit limit.
Implementing a ban on credit card gambling would place Sweden in line with other modern regulated markets such as Australia, Ireland, Norway, and the United Kingdom.
Spelinspektionen concluded that the proposal outlined in the memorandum is consistent with the regulator’s recommendations.
The Regulator Continues Market Oversight
In other developments, Spelinspektionen recently banned another skins gambling website. The company, WiseAvant OÜ, was found to be providing games of chance to Swedish customers without the necessary license.
This action follows a series of crackdowns by the authority on unlicensed operators. A few months ago, Spelinspektionen took similar actions against three companies: Galaktika NV, Newera Frozen PTE Limited, and Aprodi Ltd, two of which also offered skins gambling.
In related news, ATG’s chief executive officer, Hans Lord Skarplöth, recently suggested that the government might reconsider its proposed Gross Gaming Revenue (GGR) tax hike. The proposed tax increase has been controversial, with BOS warning that it could benefit the black market if implemented.
Source: “Spelinspektionen Approves Ban on Credit Cards in Gambling”. Gambling News. May 22, 2024.