Swedish regulator Spelinspektionen has voiced its support for a proposed comprehensive ban on gambling with credit. However, the regulator has also called for greater clarity on the new rules and regulations to ensure effective implementation and address potential concerns.
Proposed Expansion of Credit Ban
Sweden already prohibits licensed operators from offering or providing credit under the Gambling Act. The new proposals, introduced by the Ministry of Finance in February, aim to extend this ban further. The expanded ban would prevent both state operators and gambling agents from processing deposits or bets financed by credit, including credit cards.
The proposals also include a requirement for licensees to implement duty of care measures to help discourage excessive gambling. Spelinspektionen would be authorized to set requirements for these action plans, ensuring a consistent approach across the industry.
Concerns Highlighted by Spelinspektionen
In its official response, Spelinspektionen expressed general support for the ban, following its previous call for a full ban on gambling with credit cards in November last year. However, the regulator highlighted several concerns that need to be addressed for greater clarity.
One key issue is the memorandum's statement that certain parties, such as non-profit associations selling bingo games or lotteries, do not accept payments by bank card and are therefore not impacted by the ban. Spelinspektionen pointed out that public lotteries also sell tickets through digital channels, which could involve payments made by credit card or credit provided by a third party. The regulator calls for measures to ensure such payments are not made with credit.
“The memorandum lacks an analysis regarding the consequences that this situation may entail for the public benefit lotteries,” Spelinspektionen stated.
Ambiguity and Implementation Concerns
Spelinspektionen also noted ambiguity in the proposed rules, particularly regarding the definition of "credit." The current proposals refer to an extended credit ban on consumers using account credits to gamble. Spelinspektionen emphasized that credit linked to a bank account is also considered account credit, which could be interpreted as requiring license holders and gambling agents to ensure that credit spaces are not used for payments with debit cards.
However, the proposals do not specify investigative duties for licensees or agents. This means the planned rules might not go far enough in ensuring that payees must check if a debit card has a credit limit with every purchase. Spelinspektionen stressed the need for more specific guidelines on whether licensees and agents must introduce technical solutions or enter agreements with payment service providers to prevent payments through credit facilities linked to debit cards.
“Spelinspektionen instead interprets the proposal as meaning licence holders and agents may not allow such a payment if it is possible for the payee to discover without special investigative measures that the payment is made with a credit,” the regulator said. “That is, if the payee knows for some other reason that the gambling bet is financed with such credit. The scope of the proposed credit ban regarding debit cards could, for the reasons stated, be specified more clearly.”
Sweden Aligning with Global Trends
If Sweden proceeds with the planned ban, it will join several major markets that have already implemented similar measures. The UK banned credit cards for gambling in 2020, with the Gambling Commission reporting a smooth implementation without unintended consequences. Norway, another Nordic country, has a similar ban in place, as does Brazil and several other nations.
Spelinspektionen's support for the comprehensive credit gambling ban aligns with global trends and underscores Sweden's commitment to responsible gambling practices. However, the regulator's call for greater clarity highlights the importance of clear and detailed regulations to ensure the effectiveness of such measures.
Future Steps and Industry Impact
As Sweden moves towards implementing the comprehensive credit gambling ban, the industry will need to adapt to the new regulations. Licensees and gambling agents will be required to update their systems and processes to comply with the ban and ensure that payments are not made using credit.
The focus on clear guidelines and proactive measures will be crucial in ensuring the success of the ban. Spelinspektionen’s emphasis on detailed regulations and duty of care measures reflects a commitment to creating a safer and more responsible gambling environment in Sweden.
The proposed ban also highlights the importance of international collaboration and learning from other markets. By aligning its regulations with global best practices, Sweden aims to protect consumers and reduce gambling-related harm effectively.
Source:
Swedish regulator urges clarity over new rules in credit gambling ban, igamingbusiness.com, May 20, 2024.