Sweden is revising its rules for gambling on credit, with an incoming bill now set to close a few remaining options.
Should everything go according to plan, the new rules will come into force on April 1, 2026, effectively banning all gambling with credit cards – whether through direct account funding or by funding alternative payment methods, such as e-wallets.
Sweden closes loophole on credit gambling, with new rules arriving
Either way, the existing regulatory framework would now bar people from gambling on credit as it were. It’s worth noting that the new bill is not really a sweeping reform, but rather an opportunity to close a loophole that allowed players to previously borrow money to gamble.
In other words, come the new rules, operators would have to block any transactions that may have resulted from "credit" as such. Third-party lenders are also affected by the measure, and the onus will be largely on operators and licensed companies to ensure that their customers are now using someone else’s money to gamble.
With this in mind, the regulator – the Swedish Gambling Authority – could exempt some forms of gambling, such as charity lotteries, for example. The logic is that non-profit organizations would be harmed by the ban disproportionately, as they fund social and good causes by default.
Besides, the people who gamble at such places are less likely to have a high-risk player profile or to be reckless with their spending habits. However, the law predicts a blank application of the new rules, with the regulator left to decide in what cases the exemptions may apply.
The government is acting to stem the tide of gambling-related debt, hoping to strengthen responsible play practices.
Channelization and offshore gambling operations remain an issue
How exactly this measure pans out remains to be seen. In the meantime, market channelization remains fairly high in Sweden at 85% but well beyond the target.
Banning credit cards and closing the remaining loophole, rather, tied to the regulation of credit gambling, could potentially push more people offshore. Sweden, however, is responding to this threat as well, seeking to criminalize the offering of gambling products to people based in the country without a license from the regulator.
Offshore gambling remains a major challenge for regulated jurisdictions all over the world, not just Sweden, with the unregulated market thriving despite better attempts by governments.
