Tag: credit cards ban

The Swedish Gambling Authority (Spelinspektionen) has published an official response to FI2024/00442, a government measure that would ban gambling on credit. The credit card ban has been discussed for several months now and is a measure that has the regulator’s backing.

According to director general Camilla Rosenberg, the Spelinspektionen believes that the ban on gambling on credit should extend to all forms of gambling. The authority suggested that it should also be able to grant exceptions in specific cases.

In its official statement, the Spelinspektionen confirmed that it backs the proposal. The Swedish trade association BOS previously slammed the measure and suggested that it would devastate the legal market. On that note, the regulator admitted that there is no official proof of how the measure would affect operators that sell tickets digitally.

An additional concern was certain ambiguity that made it unclear how the ban would affect players paying wagers with account credits. Since credits linked to a bank account are also account credits, the Spelinspektionen noted that this could mean that licensees must ensure that credit limits are not used for payments with debit cards.

Since the original proposal does not obligate licensees to investigate such matters, however, the Spelinspektionen concluded that it does not interpret the wording as requiring gambling companies to check whether users’ debit cards have a credit limit.

Banning gambling with credit cards would align Sweden with other modern regulated markets, such as Australia, Ireland, Norway and the United Kingdom. 

The Spelinspektionen concluded that the proposal outlined in the memorandum is consistent with the regulator’s proposal.

The Regulator Continues to Watch over the Market

In other news, the Spelinspektionen just banned another skins gambling website. WiseAvant OÜ, the company in question, provided games of chance to Swedish customers without possessing the necessary license.

This came a few months after the authority cracked down on three gambling companies, namely Galaktika NV, Newera Frozen PTE Limited and Aprodi Ltd, two of which also offered skins gambling.

In other news, ATG’s chief executive officer, Hans Lord Skarplöth, recently suggested that the government might be willing to amend its GGR tax hike proposal. The tax hike has been a controversial measure, which, according to BOS, would be a gift to the black market, if implemented.

Sweden’s gambling regulator, the Spelinspektionen, has published a consultation response relating to SOU 2023:38, saying that gambling companies should not encourage their players to loan money. However, the regulator is not convinced that further measures are needed at this moment.

SOU 2023:38 is a series of proposed measures that concern the extension of the credit ban in the Gambling Act. Under Swedish law, licensed operators and gambling agents in Sweden are prohibited from promoting loans to their players as a way for them to continue playing. Sweden, however, is exploring opportunities for extending the measure and prohibiting the use of credit cards in online gambling.

The authority noted that the current laws already prohibit licensees from promoting credits to their players. Still, the Spelinspektionen agreed that the prohibition should be communicated more clearly.

However, the authority noted that, since the current law already prohibits licensees from promoting credits to players, an extension of the measure seems unnecessary. Despite that, the regulator plans to continue investigating the efficiency of the credit card bans in Norway and the United Kingdom.

For reference, around 60% of the 50 licensed operators in Sweden offer accept credit cards as a payment option.

The Spelinspektionen also commented on the proposed introduction of a system for debt and credit registers (Skri register) that would provide additional insights into the matter.

Other News about the Swedish Market

In other news, the Spelinspektionen just handed a huge fine to Videoslots, claiming that the operator has violated Sweden’s AML and CTF rules. The failings caused the regulator to issue a penalty fee of $809,300 because of the seriousness of the operator’s violations.

For reference, the gambling authority has been investigating Videoslots’ business since 2021 to confirm whether the company secured sufficient knowledge of its customers. Unfortunately, the Spelinspektionen learned that the gambling company’s efforts were lacking and that its negligence may have facilitated money laundering and terrorism financing.

Several days ago, the Spelinspektionen published a report on the ongoing review of how collaboration with the Finansinspektionen (Financial Supervisory Authority) can strengthen the efforts against illegal gambling.

This came after an earlier measure proposed allocating SEK 10.8 million (around $970,000) to the Spelinspektionen’s 2024 budget and another SEK 4.5 million ($400,000) to the Finansinspektionen in 2024, helping the two regulators crack down on unlicensed gambling.

The two authorities are currently exploring opportunities for blocking payments to and from offshore companies.