Sweden Closes the Credit Door on Gambling

Sweden Closes the Credit Door on Gambling

In Stockholm, the debate around gambling policy has increasingly centred on household debt. This week, the Riksdagconfirmed a legislative change that seeks to draw a firmer boundary between borrowing and betting. From 1 May 2026, gambling financed through credit will face a broader prohibition under amendments to Sweden's Gambling Act 2018.

Sweden has not been without restrictions in this area. Licensed operators and their agents have long been barred from offering credit directly to customers. Yet the existing framework left open another route: players could still use borrowed funds obtained from banks or other lenders. The revised law is designed to address that gap, shifting responsibility for preventing gambling involving credit to operators, regardless of its source.

Under the new provisions, licensees and gaming agents may not allow or participate in gambling financed with credit. The wording moves beyond the act of granting loans. It captures the broader financing structure behind a wager. If a bet is known to be funded through borrowed money, it must not be accepted.

For online operators, this translates into concrete payment restrictions. Credit cards are expected to be blocked as a payment method. The rationale is direct: revolving credit should not serve as a channel into licensed gambling platforms. The measure introduces technical and operational adjustments, particularly for digital operators reliant on card-based transactions.

The reform does not end with payment controls. Licensed operators will also be required to take steps to prevent and discourage gambling financed through credit. This preventative duty may take different forms depending on the business model. In land-based venues, signage may be introduced to inform customers. Online, notifications or information prompts could be integrated into user interfaces. The objective is to combine restriction with awareness.

In its initial guidance, the Spelinspektionen has made clear that compliance will demand internal review. Every operator holding a Swedish licence must assess how its systems, payment flows, and customer interactions align with the expanded ban. The responsibility is not limited to technical blocking; it extends to governance and oversight.

The legislation applies across the licensed market. Online casinos, sports betting operators, and physical gambling venues fall within scope. The distribution channel is irrelevant; the determining factor is whether the activity requires a Swedish licence. Games outside the licensing regime, such as certain municipal registration lotteries, are not covered by the amendment.

There is limited room for exemption. Spelinspektionen may permit exceptions for operators licensed for public benefit purposes. Such cases are expected to be narrow and assessed individually. For the majority of commercial licensees, the rule will apply in full.

The political logic behind the amendment rests on concerns about indebtedness. Borrowed funds can extend gambling activity beyond immediate means and amplify financial harm. By limiting access to credit for betting, lawmakers aim to remove one structural driver of risk. The approach does not target specific products or verticals; instead, it addresses the financial mechanism underlying participation.

The decision also reflects Sweden's broader regulatory trajectory since the market was re-regulated in 2019. Consumer protection has been a recurring theme, expressed through deposit limits, self-exclusion systems, and marketing oversight. The extended credit ban fits within that pattern, adding another layer to the compliance framework.

For operators, the transition period until May 2026 offers time to adapt. Payment service agreements may require renegotiation. Transaction monitoring systems may need updating to identify potential credit-based activity. Internal policies will likely be revised to define how “known” credit financing is assessed and documented. These adjustments carry operational implications but are consistent with Sweden's supervisory model, which emphasises accountability at the licensee level.

The amendment also intersects with international discussions about the role of financial instruments in gambling. Several jurisdictions have examined credit card restrictions in recent years, particularly in online markets. Sweden's move aligns with this direction while embedding the restriction in statutory language.