Sweden: Towards a ban on credit in gambling

The Swedish government is taking a further step in its fight against gambling addiction and over-indebtedness: a bill has just been submitted to ban the use of credit in gambling. 

Credit as an aggravating factor

While gambling already represents a risk factor for the mental and financial health of vulnerable players, access to credit amplifies this danger. The bill therefore seeks to prohibit not only direct credit from gambling operators, but also payments via third-party providers where the means of financing is credit.

The government also wants to prevent consumers from circumventing this ban through indirect purchases. Credit cards, deferred payment services such as Klarna or any other mechanism that could be assimilated to credit would therefore be targeted.

Existing limits… but deemed insufficient

Current legislation already prohibits operators from granting credit directly to their customers. However, this rule does not cover payment solutions offered by third parties. These channels, often used in the iGaming sector, allow a player to end up in debt without even going through the gaming site itself. It is this loophole that the current proposal seeks to close. 

“Playing for money on credit can lead to major financial difficulties. That is why we are putting an end to this possibility. It is not reasonable for gambling companies or agents to contribute to people taking such huge risks,” said Niklas Wykman, Minister for the Financial Markets, when the first law restricting the use of credit in gambling was passed.

A reaction to worrying growth

The Swedish authorities are concerned about the increase in the number of people seeking gambling-related debt counselling services. According to the Swedish agency Konsumentverket, gamblers who use credit to finance their gambling habits are statistically at greater risk of accumulating non-repayable debts.

In a 2023 study, nearly 40% of problem gamblers in Sweden said they had used credit to finance their gambling activities. This worrying statistic has strengthened the political will to act quickly.

Gambling industry on the defensive

Unsurprisingly, gambling operators, particularly online betting companies, are watching this proposal with concern. Although the government insists that the measure is aimed at strengthening social responsibility, some players in the sector fear that it will have a negative effect on their turnover and on the smooth flow of payments. This argument, repeated on several occasions by the industry, has led to fears of an increase in gaming on illegal platforms, which are not subject to any regulation.

Exceptions envisaged subject to strict conditions

Although the proposed law aims for a general ban on the use of credit in gambling, the Swedish government is nevertheless planning certain exemptions. These could include certain lotteries, particularly those with a social or charitable purpose. The executive wishes to protect initiatives deemed beneficial to the community, as long as they are not linked to political interests.

‘Exceptions must be granted for special reasons, for example for subscription lotteries and supplementary games, provided that protective measures are taken to limit the amount of credit,’ the government said. 

The Swedish Gaming Regulatory Authority, Spelinspektionen, would be responsible for supervising and evaluating these exemptions, to ensure that they do not circumvent the fundamental objective of the reform: to limit the financial risks for vulnerable players.

A timetable already in place

The proposal is currently in the public consultation phase, open until 23 July 2025. If adopted, the law could come into force as early as 1 April 2026. In the meantime, the Swedish government hopes to gather the opinions of experts, consumer associations and industry players in order to refine the final text.

Belgium already bans credit in gambling

Belgium is one of the strictest European countries when it comes to responsible gambling. Under its current legislation, it is totally forbidden to gamble in casinos (whether physical or online) using credit cards. Only debit cards, such as Visa Debit or Mastercard Debit, are permitted.

This measure, which is enshrined in Belgian law, aims to limit player indebtedness by prohibiting all transactions made on credit. Gaming platforms are obliged to refuse credit card payments, on pain of penalties. This model, hailed by numerous consumer protection associations, is now serving as an example for countries considering stricter regulation of the sector.