Gambling Authority Challenges Government Findings

credit card gamblingSpelinspektionen has highlighted its concern over the increasing use of credit cards in gambling. A recent survey revealed that around 60% of licensed gambling operators in Sweden offer credit card payment options. This trend, according to the authority, is in direct contradiction to the Gambling Act, which prohibits license holders from encouraging players to engage in borrowing for gambling.

Camilla Rosenberg, the director-general of Spelinspektionen, argues that the government’s investigation failed to recognize the significant signal value a ban would hold. According to Rosenberg, a ban would send a clear message that gambling with borrowed money is an undesirable practice in Swedish society.

While acknowledging the practical challenges in enforcing such a ban, Rosenberg suggests that Sweden could take cues from Great Britain and Norway, where similar prohibitions have been successfully implemented.

The UK introduced a ban on credit card gambling on UKGC-licensed casinos in April 2020, which, according to the UK Gambling Commission, was executed smoothly without leading to any unintended consequences.

Supporting a System for Debt and Credit Registers

Apart from advocating for the credit card ban, Spelinspektionen has expressed its support for most of the proposals in the government’s report, including the establishment of a system for debt and credit registers. Rosenberg emphasizes that an efficient and robust credit check system is crucial in counteracting the over-indebtedness faced by individuals with gambling problems.

The proposed SKRI register system, if implemented, would require careful consideration, particularly regarding the detailed requirements that a credit information company must meet to maintain such a register. This approach aligns with the broader objective of the investigation to counteract risky lending practices and manage over-indebtedness more effectively.

Broader Consultations and International Comparisons

The government’s report has prompted responses from a diverse range of stakeholders, including Svenska Spel, Branschföreningen för Onlinespel, the court system, healthcare professionals, and consumer and banking agencies. These responses reflect the multifaceted nature of the issue, encompassing legal, health, and financial perspectives.

Internationally, the movement towards restricting credit card use in gambling is gaining momentum. Australia’s government, for instance, recently tabled the Interactive Gambling Amendment Bill 2023, proposing a similar ban with significant fines for non-compliance.

Conclusion

As the debate continues, it’s clear that Spelinspektionen’s stance represents a significant divergence from the government’s position. With the example of successful implementations in other countries, the call for a credit card ban in gambling in Sweden is likely to gain further traction. The authority’s emphasis on consumer protection and responsible gambling reflects a growing awareness of the need to mitigate the financial risks associated with gambling, a sentiment that is increasingly resonating in global gambling regulation discussions.

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