Swedish BOS rejects the proposal “A new ban on gambling on credit”

The Swedish Trade Association for Online Gambling (BOS) submits its statement to the Ministry of Finance on the memorandum “A new ban on gambling on credit”, in which a ban on credit cards for gambling is proposed.

BOS rejects the proposal. This is justified by Gustaf Hoffstedt, Secretary General of the Swedish Trade Association for Online Gambling, among other things through the proposal’s negative consequences on channelization.

If the government nevertheless goes ahead with the proposal, BOS proposes that the obligation not to mediate payments for gambling purposes be imposed on those issuing credit cards rather than on gambling operators. In this way, it will be prohibited for credit card issuers, under the supervision of the Swedish Financial Supervisory Authority (Finansinspektionen), to mediate payments via credit cards for all gambling companies, including illegal and/or unlicensed gambling companies. Almost half of the Swedish online casino market is unlicensed and/or illegal due to heavy restrictions of the licensed market.

In the name of consumer protection Sweden should not add new restrictions on consumers that still place their bets on the legal gambling market. That is the main reason for us to turn this suggestion down. Should the government want to proceed with a credit card prohibition on gambling, we suggest that such restriction is directed not towards gambling operators but credit card issuers, since the latter are also serving the half of the market that is illegal and unlicensed, says Gustaf Hoffstedt.