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The Swedish Trade Association for Online Gambling, or BOS (Branschföreningen för Onlinespel) has highlighted its opposition to a ban of credit card gambling in Sweden.
In Sweden, the Ministry of Finance forwarded a memorandum with a proposal to introduce a more comprehensive ban on the use of credit for gambling.
Within the press release from the Ministry of Finance, it underlines the financial difficulties that may come about as a result of using credit for gambling; and to counteract indebtedness, a more comprehensive credit ban is now being proposed, which means gambling companies cannot receive payments that are financed through credit.
In the UK, credit card gambling was banned on 14 April 2020. And despite some arguments to the contrary (even from Gambling Insider journalists), largely the industry accepted this without much opposition.
But it is interesting that the BOS is not taking the same stance in Sweden.
Previously BOS has shown its support for tightened credit regulations in Sweden to reinforce consumer protection against risky lending and over-indebtedness.
The proposal at the time rejected a ban on credit card gambling, which BOS agreed with.
BOS Secretary General Gustaf Hoffstedt said: “It is sad that the Government does not listen to its own expertise and instead proposes a ban on credit cards when gambling, contrary to what the government investigation has concluded. Interestingly, the government does not propose a corresponding credit card ban for the purchase of alcoholic beverages, which in Sweden is only offered by a retail monopoly owned and operated by the government itself.
“The government is handing yet another competitive advantage to the unlicensed gambling market, which has a 41 percent market share when it comes to online casino. The risk is great that unlicensed gambling will overtake and gain a larger total market share than licensed gambling in 2024. The government needs to change focus and show that it is on the same side as the licensed gambling companies and the safeguarding of consumers.”
Hoffstedt appeared on The Huddle last year, defending Swedish operators and critiquing the Swedish Government’s decision to increase gaming tax from 18% to 22%.
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