Sweden has disclosed a massive overhaul of its gambling regulations. The lawmakers have agreed to a ban on the use of credit for gambling. The modifications revise the 2018 Gambling Act and will come into force on May 1, 2026.
Operators will be required to adjust their payment systems to comply with the rules. The government aims to stop gamblers from getting into big debts and is taking this step after problem gambling in the country increased. Thus, more stringent payment rules have been set out to ensure that only the vulnerable gamblers are protected.
Before, the operators were not allowed to lend money to the players, but the players went into a risky mode of operation using their personal credit cards or loans. The new provision closes the loophole and focuses on the use of third, party borrowed funds. Hence, gambling companies may not accept bets paid for in any credit form. The change is expected to significantly diminish the number of cases of financial harm.
Operator Duties and Tech Changes
Companies that offer betting should not allow the use of credit cards for online payments. A platform that keeps on accepting digital deposits must take the initiative to bring a technology change that will automatically prevent the use of borrowed money. Therefore, developers have to come up with mechanisms that will not allow these transactions or else the national authority may impose a heavy fine on them. However, companies have the opportunity to take advantage of the time until spring 2026 to complete their works, which implies that the year will be quite busy for IT teams.
Since credit betting is now prohibited, physical shops can no longer hide their measures. Managers have to place warning signs inside the shops to inform customers that credit usage is prohibited. Online platforms will have to require the use of pop-up alerts to stop players from using borrowed funds. The Swedish gaming regulator, Spelinspektionen, wants there to be no misunderstanding when all gamblers are given information about the new rules.
Spelinspektionen has ordered all licensed operators to thoroughly check their existing systems. Each company is required to examine their payment options and put in place such measures that will totally eliminate the possibility of credit betting. The regulator is very strict and he is going to be very watchful, so the companies have to act quickly before the deadline in May. If they postpone, the legal consequences might be very serious, and at the same time, those who take the lead are in a better position to handle the changes.
Protecting Players and Expected Impact
Interestingly, the law sets out some legal exceptions. It primarily targets commercial games for which a national license is required, but Spelinspektionen can allow exceptions for games of a charitable nature. For example, charity lotteries might not be subject to the new credit bans and municipal registration lotteries do not need a normal license. Thus, small local games are mainly unaffected while the authorities focus on bigger casinos and sportsbooks.
Consumer safety is the key focus of the new legislation. Credit gambling can cause extreme and lasting financial damage, so the lawmakers promptly acted to protect the vulnerable people. By removing the credit card option, Sweden is making gambling safer; in fact, players will only be able to use the cash they have. This action will prevent many families from financial disaster, experts say, and they expect other European countries to follow Sweden’s lead.
Many addiction specialists support this tough law as it is widely known that credit cards facilitate risky gambling and using money that the players do not have to chase the losses. By banning credit, the government is ensuring that there will be a natural stop in the process; in fact, usage of debit cards or direct transfers will be required. Officials will check financial data to see whether gambling debts have decreased and if so, even stricter rules may be introduced. Operators would be wise to start getting ready for the May deadline now.
