Tightened Rules in Lending to Gamblers Backed by Swedish Gambling Association (BOS)
In the realm of online gambling, two European nations, Sweden and the UK, are navigating the complexities of stricter credit rules aimed at curbing problem gambling.
In Sweden, the Gambling Authority (Spelinspektionen) and the government have implemented stringent credit regulations for gamblers. These rules prohibit financing online gambling with credit, making licensed operators responsible for ensuring customers do not use credit to gamble. The intention behind these regulations is threefold: to reduce the risk of gamblers accumulating unmanageable debt, limit impulsive betting financed by borrowed money, and encourage more sustainable gambling habits by restricting easy financial access.
This regulation is part of broader efforts to improve responsible gambling safeguards. Since 2019, licensed operators in Sweden must implement responsible gambling tools such as deposit limits, timeouts, and integration with national self-exclusion systems (Spelpaus), which help mitigate problem gambling risks.
However, the Swedish Trade Association for Online Gambling (BOS) voices concerns about striking a balance between responsible gambling and market innovation. While they support safer gambling practices, they also emphasise timely access to new gambling products within the licensed market to stay competitive with unlicensed operators.
Across the sea, the UK is currently debating the issue of credit granting to potentially gambling-addicted individuals. Despite discussions, a ban on credit cards has been rejected due to complexity among providers and existing creditworthiness checks. However, the UK government has introduced a mandatory levy for gambling companies to the health system, but there are no further plans to regulate credit granting.
In both countries, the effectiveness of stricter credit rules in reducing financial problems due to gambling remains uncertain. While the prohibition on gambling on credit is generally regarded as a measure likely to decrease problem gambling severity, a direct statistical evaluation of the credit banβs effectiveness is yet to be reported in the available sources.
In conclusion, stricter credit rules are intended to reduce problem gambling by blocking credit-financed gambling, increasing operator responsibility, and supporting protective mechanisms. However, ongoing dialogue between regulators and industry seeks to maintain regulatory effectiveness without stifling innovation. The journey towards responsible gambling continues, with both Sweden and the UK leading the way in setting examples for other nations to follow.
- What about the role of the finance industry in responsible gambling trends, particularly in the casino-and-gambling sector, given the stricter credit rules implemented in Sweden and the ongoing debates in the UK?
- As the industry navigates the complexities of these stricter credit regulations, it becomes increasingly important for both licensed operators and financial service providers to collaborate to ensure responsible gambling practices.
- The finance industry must be responsible in its approach to providing services to gambling operators and individuals, recognizing the potential for problem gambling and actively promoting responsible gambling measures.