Swedish BOS Rejects Proposed Credit Ban for Gambling

The Swedish Trade Association for Online Gambling (BOS) has submitted its response to the Ministry of Finance regarding the proposed memorandum “A new ban on gambling on credit,” which suggests prohibiting the use of credit cards for gambling.

BOS opposes the proposal, citing its potential negative impact on channelization, as explained by Gustaf Hoffstedt, Secretary General of BOS.

If the government proceeds with the proposal, BOS recommends that the responsibility to prevent payments for gambling purposes be assigned to credit card issuers rather than gambling operators. This approach would prohibit credit card issuers, under the supervision of the Swedish Financial Supervisory Authority (Finansinspektionen), from processing payments for all gambling companies, including those that are illegal or unlicensed. Currently, nearly half of the Swedish online casino market operates without a license due to stringent regulations on licensed operators.

For the sake of consumer protection, BOS argues that additional restrictions should not be imposed on consumers who participate in the legal gambling market. This is the primary reason for rejecting the proposal. Should the government decide to enforce a credit card ban for gambling, BOS suggests targeting the restriction towards credit card issuers instead of gambling operators, as the issuers also cater to the illegal and unlicensed market.

The BOS referral statement can be read here: https://www.bos.nu/wp-content/uploads/2024/05/Referral-statement-A-new-ban-on-gambling-on-credit.pdf

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