Swedish Government Plans Total Ban on Gambling with Credit

This new legislation is seeking to expand the existing framework established by the Swedish Gambling Act, which already prohibits licensed operators from accepting credit for gambling. However, the government is aiming to fill significant gaps in the current regulations that allow players to access credit from other sources.

The proposed changes would make it illegal for gambling operators to accept bets financed with borrowed money, including credit cards or loans from third-party providers. This move is intended to create a safer and more sustainable gambling environment, as officials believe that the current regulations do not adequately protect consumers.

“By preventing gambling from being financed with credit, the government wants to reduce the risk of over-indebtedness and protect consumers from ending up in financial difficulties,” the government said.

In a recent press conference, Finance Minister Niklas Wykman also spoke on the reason why the expanded proposal was introduced, stating, “You simply should not bet with borrowed money.”

What Does the New Legislation Propose?

The proposed legislation introduces several significant restrictions, all focused on enforcing the ban on credit gambling. For one, gambling operators would be prohibited from connecting players to any third-party credit providers, effectively removing indirect access to credit for gambling.

Also, if operators become aware that a player is using borrowed funds to place bets, they must not accept those wagers. This rule applies to both physical and online gambling sites, which would also be prohibited from processing credit card payments when there’s proof that a credit card is being used at the time of transaction.

To comply with the new rules, gambling operators must implement practical steps to discourage credit-based gambling. These actions could involve displaying warning signs in physical locations or showing clear notifications online. In the end, the methods should be simple and not expensive.

“Instead, they should use existing technical equipment that enables the blocking of credit cards for gambling without affecting the sale of other goods,” the government said.

Furthermore, the legislation mandates that licensees and gambling agents cannot enter into credit agreements for gambling-related activities. This means they cannot authorize any connections with credit providers related to online gambling.

Government Makes Exemptions

The Ministry of Finance has clarified that while the new legislation aims for a broad credit gambling ban, there will still be room for certain exemptions. 

Certain lotteries, like those that serve public interests and are not affiliated with any political party, may be allowed to continue offering limited credit-based options. However, they would need to provide adequate safeguards to limit the amount of credit used.

These exceptions would be managed by the Swedish Gambling Authority (Spelinspektionen), which will ensure that strict conditions are in place to prevent financial risks.  

Spelinspektionen Backs the New Legislation 

This new proposal comes in response to growing pressure from Spelinspektionen and advocates for consumer protection. The regulator has long called for stricter controls, particularly regarding credit card usage, and has raised concerns about the vague definitions of “credit” in existing laws.

While Spelinspektionen has not yet released an official statement on this latest legislation, it acknowledged the proposed changes yesterday (June 12) and is expected to contribute to discussions in the near future.

This legislative effort is part of a larger push to combat harmful gambling practices in Sweden. In recent months, Spelinspektionen has taken several enforcement actions, including banning unlicensed online operators, issuing fines to several violators, and issuing warnings to influencers promoting gambling without the required licenses, especially on streaming platforms like Twitch.

Last year, the Swedish government also proposed similar restrictive regulations around gambling, which were well supported by Spelinspektionen. The new legislation, if approved, is set to take effect on April 1, 2026. By that date, all licensed operators must have put the necessary systems in place to ensure no gambling activities are financed through credit.