The Swedish government has proposed a ban on the use of credit cards for online gambling, following the examples of Norway and the UK. However, the Swedish Trade Association for Online Gambling (BOS) has expressed its opposition to the proposal, arguing that it would harm the licensed gambling market and the consumers.
Government wants to prevent gambling harm
The government announced on Friday that it was planning to introduce a more comprehensive ban on the use of credit for gambling, which would mean that gambling companies could not accept payments that are financed through credit cards. The government said that the ban was aimed at preventing gambling harm and over-indebtedness among consumers.
The proposal is based on one of the recommendations from a parliamentary committee inquiry that examined the regulation of credit cards and digital wallets for online gambling. The inquiry concluded that the use of credit for gambling could have “significant and life changing” consequences for some people, and that a ban would bring online gambling in line with other services where credit cards are not allowed.
The government also said that the ban would not apply to lotteries, as they are considered to have a low risk of gambling harm. The legislation to implement the ban is expected to be introduced to parliament later this year.
BOS argues for consumer choice and protection
The BOS, which represents the licensed online gambling operators in Sweden, has criticised the government’s proposal, saying that it would not achieve its intended goals and that it would instead benefit the unlicensed gambling market, which has a 41 percent share of the online casino segment.
The BOS said that the government was ignoring its own expertise and the conclusions of the inquiry, which did not recommend a ban on credit cards for gambling. The BOS also pointed out that the government did not propose a similar ban for the purchase of alcoholic beverages, which are only offered by a state-owned monopoly in Sweden.
The BOS argued that consumers should have the right to choose their payment methods and that a ban on credit cards would not prevent them from accessing other forms of credit, such as loans or overdrafts, which could be more expensive and less transparent. The BOS also said that a ban on credit cards would undermine the consumer protection measures that the licensed gambling operators have in place, such as deposit limits, self-exclusion, and responsible gambling tools.
The BOS urged the government to change its focus and to support the licensed gambling market and the safeguarding of consumers, rather than handing over another competitive advantage to the unlicensed operators, who do not comply with the Swedish regulations and do not pay taxes in Sweden.
Other countries have banned credit card gambling
The proposal to ban credit card gambling in Sweden follows the examples of other countries that have introduced similar measures in recent years. In the UK, the Gambling Commission banned the use of credit cards for all forms of online and offline gambling, except for lotteries, in April 2020. The ban was supported by most of the gambling industry and the public, as well as by financial institutions and charities.
In Norway, the government has also banned the use of credit cards for online gambling since 2010, as part of its efforts to restrict the access to foreign gambling sites that are not licensed by the Norwegian Gaming Authority. The ban applies to both credit and debit cards, and it is enforced by blocking the transactions from the banks.
However, some experts have questioned the effectiveness and the unintended consequences of the credit card bans, as they may not address the underlying causes of problem gambling and they may drive some consumers to use alternative payment methods that are less regulated and more risky.
