Sweden Considers Expanding Gambling Credit Restrictions

Sweden Considers Expanding Gambling Credit Restrictions

Sweden is preparing to tighten its gambling framework with a proposal that would extend its existing restrictions on gambling with borrowed funds. The government has suggested an amendment to the Gambling Act of 2018 that would prohibit all forms of gambling financed by credit. If adopted, the new legislation would not only ban operators from providing credit but also block wagers placed with money obtained through loans, credit cards, or other external lending sources.

The idea builds on rules already in place. Currently, Swedish law prohibits licensed operators and their agents from offering credit directly to their customers. However, players can still participate in gambling using money borrowed from banks or card issuers, creating a loophole that regulators say undermines the intent of the original legislation. The government's proposal aims to bridge this gap and establish a clearer distinction between gambling and credit-based spending.

Under the new framework, operators would be expected to take a more active role in ensuring that gambling is not conducted with borrowed money. This responsibility would go beyond blocking direct credit offers. It would require operators to avoid processing payments linked to credit cards and to introduce measures that discourage customers from funding their gambling with loans.

These measures could take different forms depending on the setting. A land-based casino might be required to display reminders about the risks of using borrowed funds, while online platforms might integrate alerts or notifications when a player attempts to deposit using credit. The government's position is that operators should play a visible part in reducing gambling-related debt rather than leaving the issue solely in the hands of financial institutions or consumers themselves.

The government has justified the move by pointing to research connecting gambling with rising levels of personal indebtedness. According to policymakers, restricting credit-based gambling is one way to reduce the risk of individuals accumulating unsustainable debts. While gambling in itself is a regulated activity intended to be undertaken voluntarily, financing it with borrowed funds, officials argue, creates a direct pathway to long-term financial difficulty.

By focusing on credit, lawmakers intend to separate gambling from financial practices that encourage overspending. The government has emphasized that the reform is aimed at preventing harmful consequences rather than limiting participation in gambling as a whole. The proposal is thus framed as part of a wider consumer protection strategy that links financial regulation with gambling oversight.

If passed, the ban would apply to all licensed gambling activities in Sweden, whether provided online or at physical venues. From lotteries and betting to slot machines and casino games, the restrictions would operate across the sector without distinction.

Still, the proposal leaves room for flexibility in cases where gambling is conducted for public benefit. The Swedish gambling regulator, Spelinspektionen, would have the authority to grant exemptions to operators running activities that serve charitable or community-based purposes. These exceptions are expected to be narrow, but their inclusion indicates that the government acknowledges the role of gambling revenues in supporting specific public initiatives.

The responsibility for overseeing the ban would rest with Spelinspektionen. The regulator would work alongside Finansinspektionen, which oversees financial services, and Konsumentverket, the Swedish Consumer Agency, to ensure that the new framework is applied consistently.

Operators that fail to comply could face a range of penalties. These may include monetary fines, temporary suspensions of their licenses, or, in cases of serious violations, permanent revocation. By establishing a system of escalating sanctions, the government aims to signal that enforcement will be more than just symbolic.

The proposal sets April 1, 2026, as the effective date of the new rules. This delayed start is intended to provide operators with time to update their payment systems, train staff, and implement the necessary safeguards to meet their new responsibilities. Financial institutions would also be expected to coordinate with gambling companies to ensure that credit card payments are no longer processed for gambling-related transactions.

The extended timeline suggests that the government is aware of the practical adjustments required to implement the ban. Rather than enforcing immediate compliance, the phased approach is designed to provide clarity and time for both operators and regulators to adapt.

For operators, the proposal may bring new operational challenges. Many platforms currently allow credit card deposits as a standard option, and removing this pathway could require significant restructuring of payment systems. While some players use credit cards for convenience rather than necessity, the law would remove that option altogether, reinforcing the principle that gambling should be financed only with available, non-borrowed funds.

For consumers, the law may alter payment habits. Debit-based transactions and prepaid alternatives would likely become the norm, and the absence of credit cards could act as a practical brake on overspending. While some may view the measure as restrictive, policymakers see it as a way to protect individuals from the risk of gambling-related debt.