BOS Backs Ministry of Justice in Tightening Credit Rules

The Ministry of Justice in Sweden is taking bold steps to ensure responsible gambling practices. Under the government's proposals, gambling operators will be prohibited from endorsing third-party lenders to provide credit to consumers. While the Swedish Gambling Act already disallows operators from extending credit to gamblers, some businesses had been indirectly facilitating this service through third-party lenders. The Ministry aims to put a stop to this practice with the implementation of new regulations.

Additionally, the Ministry plans to create a credit and debt registry known as the Skri Register. This initiative follows an investigation into excessive consumer debt, published in July, which proposed various measures to address the issue, including new laws related to marketing and credit checks.

BOS Secretary-General, Gustaf Hoffstedt, stated, "It is in the interest of licensed gambling companies that gambling consumers do not spend more money than they can afford. Gambling should provide excitement, joy, and entertainment in safe and secure forms, without leading to financial worries or vulnerability. Our member companies have no interest in encouraging their customers to gamble on credit, either directly or through agents. Therefore, we welcome the proposed changes in the gambling market."

The report had considered the possibility of banning credit card use in gambling in Sweden. However, it ultimately chose not to include this measure in its recommendations, citing complexities in the current payments landscape.

BOS agreed with this decision, emphasizing that such a ban would have "draconian consequences" for the gambling market. They argue that this would give an unfair advantage to the unlicensed sector, negatively impacting Sweden's channelization efforts. Additionally, BOS contended that the ban on promoting third-party credit sources should not affect the use of credit cards for payment. They pointed out that credit card users already undergo credit checks when engaging in gambling activities.

BOS supports the creation of a single debt and credit register, asserting that it would enhance lenders' ability to assess a borrower's financial situation. They also believe that this register could help licensed gambling companies fulfill their obligations to combat money laundering and the financing of terrorists.

"In addition, licensed gambling companies have an obligation to take measures against money laundering and the financing of terrorists," said BOS. "These measures would probably benefit if it were possible for licensed betting companies to seek information in the Skri register."