Trade body in Sweden backs tightened credit regulations

Content Team October 16, 2023

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Trade body in Sweden backs tightened credit regulations

The Swedish online gambling trade body, Branschföreningen för Onlinespel (BOS), has come out in support of the Ministry of Justice’s proposed strengthening of credit rules.

This proposal would see the prohibition of gambling operators from promoting third-party sources of credit, in addition to the existing ban on operators offering credit to consumers for gambling.

The Ministry also plans to establish a credit and debt register called Skri Register as part of these measures.

Consumer-debt investigation

These recommendations come in lieu of an investigation conducted into excessive consumer debt which was published this July.

This investigation also yielded calls for new regulations on marketing and credit checks.

BOS’s statements

BOS’s secretary general, Gustaf Hoffstedt, emphasised the importance of ensuring that gambling consumers do not spend more than they can afford and that gambling remains safe and secure. In a statement on the matter, he said:

“It is in the interest of the licensed gambling companies that gambling consumers do not spend more money than they can afford. Gambling shall offer excitement, joy and entertainment in safe and secure forms. Gambling should not lead to financial worry or vulnerability.”

He stressed that BOS is opposed to the idea of banning credit card use in gambling, as this could have negative consequences which the body labelled as “draconian” and favour unlicensed operators.

This in BOS’s eyes could cause highly significant detriment to Sweden’s current channelistaion efforts.

BOS argue that credit card users already undergo adequate credit checks when gambling.

Hoffstedt also stated that BOS sees the establishment of the Skri Register as a positive step to improve leaders’ assessment of borrowers’ financial positions, along with enhancing licensed gambling companies’ efforts against money laundering and financial terrorism by allowing access to this register.

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