Branschföreningen för Onlinespel (BOS), the Swedish gambling industry trade association, wants the Government to rethink its proposal for a complete ban on credit card payments for online betting.
The Ministry of Finance’s proposal provides for a total ban on all forms of credit for gambling transactions.
You will not be able to pay for sports bets with a credit card
Current legislation prohibits licensed operators from processing credit card transactions, as specified in the 2018 Gambling Act, which relaunched the gambling market in Sweden. However, the new changes go further, banning all forms of credit-financed payments to the gaming sector.
Therefore, this means that other than credit card transactions, licensed operators will not be able to process any credit-based funds. This would include personal loans, deferred payments and overdrafts.
The government intends to move forward with the legislative process to enforce this ban. But a memorandum has been issued for comments until May 23, 2024, and a vote in the Riksdag is expected later this year. Then, the changes will come into effect on April 1, 2025, if approved.
The BOS responds to these developments by trying to convince the government to reconsider its proposed ban. Gustaf Hoffstedt, Secretary General of the BOS, argues that the responsibility for preventing payment for games with credit cards lies with credit card companies and not operators, such as sportbooks and online casinos.
Entity believes that the ban will not protect consumers
BOS considers that imposing further restrictions on legal gaming operators will not protect consumers. Because, by placing the supervision of the Swedish Financial Supervisory Authority (Finansinspektionen), the government will be preventing payments via credit cards to all gambling companies.
Hoffstedt emphasizes that the new restrictions should not burden players who bet on the legal market. Therefore, the entity manifests itself in an attempt to maintain a balanced environment that projects the interests of consumers without encouraging illegal gambling.