Sweden is tightening its stance on gambling funded by borrowed money, aiming to outlaw the use of credit across the entire regulated sector. A new legislative proposal seeks to close loopholes in the current law and stop both direct and indirect access to credit for gambling.
Under the proposed changes, all licensed operators and their agents would be barred from accepting bets financed through credit cards or third-party lenders. The reform broadens the scope of the existing Gambling Act, which currently limits only direct credit from operators.
Finance Minister Niklas Wykman summed up the shift: “You simply should not bet with borrowed money.”
Plugging the Gaps in Current Law
The existing law restricts credit issued directly by gambling companies, but players have still found ways to gamble using loans from other sources. Critics have flagged this as a significant oversight, one the government now aims to fix.
The new proposal would make operators responsible not only for issuing credit themselves but also for any involvement in transactions where credit is used. It would also prevent them from steering customers toward third-party lenders and block the use of credit cards when their use is identifiable at checkout—both online and in person.
Enforcement, Compliance, and Exemptions
Operators will be expected to implement visible safeguards, such as warning signs in physical venues and alerts in digital spaces. These tools should be low-cost and based on existing payment technologies to avoid broader disruptions to business operations.
While the rules are set to be far-reaching, a narrow path for exemptions remains. The legislative council signaled that certain lotteries tied to public interest causes might still be allowed limited use of credit—subject to strict controls overseen by Spelinspektionen, the Swedish Gambling Authority.
Eligible activities could include subscription-based lottery services, provided they feature firm spending caps and risk management.
Part of a Broader Crackdown
The reform comes amid growing calls from consumer advocates and regulatory pressure. Spelinspektionen has long criticized the vague definitions of “credit” and has pushed for stricter controls, particularly on using credit cards.
The agency is yet to formally comment on the new proposal but is expected to provide input as the legislation advances.
This overhaul is part of Sweden’s broader campaign to tackle gambling-related harm. Recent moves include actions against unlicensed online casinos and crackdowns on influencer marketing linked to unregulated operators, particularly on platforms like Twitch.
If approved, the new rules will take effect on April 1, 2026. By that date, all licensed gambling companies must have fully implemented systems to block betting with borrowed funds—a step that would put Sweden at the forefront of Europe’s push to separate gambling from personal debt.
