Sweden.- The Swedish government has initiated a proposal to amend the Gambling Act 2018, aiming to prohibit licensed gambling operators and their agents from facilitating gambling activities financed through credit. This initiative seeks to expand the existing ban, which currently restricts operators from directly offering credit for gambling purposes.
Presently, the prohibition on gambling with credit applies solely when the credit source is a licensed gambling operator or its agent. This has allowed players to engage in gambling using credit acquired through other means. By amending the law, the government intends to eliminate this loophole, effectively restricting all forms of gambling funded by borrowed money.
Under the proposed changes, licensees would be barred from accepting bets that are known to be supported by credit and from processing any payments made via credit cards. The legislative shift would also necessitate that licensees and gaming agents implement proactive measures to avert gambling activities financed by credit. These measures could include displaying warnings at physical gambling locations and issuing notifications in online gaming platforms.
The primary goal of the new regulation, as stated by the government, is to mitigate the risk of financial distress stemming from gambling-related debts. Research highlighted by the government points to a clear connection between gambling and increased financial indebtedness.
These proposed requirements are intended to apply universally to all licensed gambling forms, irrespective of whether they occur online or in physical venues. Nevertheless, the Swedish gambling regulator, Spelinspektionen, would retain the authority to grant exemptions to certain operators, particularly those licensed to conduct gambling for charitable purposes.
The legislative amendments are slated to come into effect on April 1, 2026. Should these changes pass into law, Spelinspektionen, supported by the financial regulator Finansinspektionen and the consumer agency Konsumentverket, would take charge of enforcing the new regulations.
To ensure compliance, Spelinspektionen would be empowered to impose various penalties, including fines, temporary suspensions, or even the revocation of licenses for severe infractions.
Simultaneously, a government-mandated review of the 2018 Swedish Gambling Act has concluded, resulting in proposals to broaden and clarify the act’s scope. Marcus Isgren, appointed in February to lead this examination, recommends amending the act to eliminate the “directional criterion,” which currently necessitates proof that online games are targeted specifically at the Swedish market for enforcement actions to be taken.
This criterion has posed challenges for Spelinspektionen, which has struggled to act against unlicensed operators unless clear evidence shows they are targeting Swedish players, such as by using the Swedish language or accepting Swedish krona.
Isgren’s proposals suggest that the scope of the Gambling Act should instead focus on a participant perspective. This would mean assessing whether individuals physically located in Sweden are able to participate in the gambling offerings, without requiring additional proof of targeted marketing.
The proposed legislative changes have sparked a discussion among industry stakeholders. One faction argues that the new rules could potentially stifle the gambling market in Sweden by limiting consumer choice and diminishing the competitive edge of local operators over unregulated offshore entities. They emphasize the need for balance, suggesting that stringent measures could inadvertently push players towards black-market operators who offer more lenient credit terms.
Conversely, proponents of the amendment stress the importance of consumer protection and responsible gambling practices. They argue that the industry has a moral obligation to ensure that gambling activities do not exacerbate financial vulnerabilities among players. “It’s not just about business; it’s about safeguarding our communities from the potential harms of unchecked gambling practices,” echoes a sentiment common among supporters.
As the debate continues, the Swedish government remains steadfast in its commitment to safeguarding its citizens from the potential perils of gambling debts. The proposed amendments not only reflect an effort to enhance regulatory clarity but also underscore a broader societal concern regarding the impact of gambling on financial stability.
The evolving regulatory landscape in Sweden may also prompt other jurisdictions to re-evaluate their own gambling laws, particularly in the context of credit financing. With financial over-indebtedness linked to gambling becoming an increasingly prominent issue globally, Sweden’s approach might offer valuable insights for policymakers in other regions seeking to strike a balance between industry growth and consumer protection.
As the April 1, 2026, implementation date approaches, all eyes will be on Sweden to see how effectively these new measures are integrated and enforced. The outcome could serve as a benchmark for future regulatory frameworks internationally, as governments grapple with the dual objectives of fostering a fair gambling market while safeguarding their citizens’ financial well-being.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
