BOS Endorses Tighter Credit Regulations for Swedish Gambling
LISTEN TO THIS ARTICLE:The Swedish online gambling industry association, Branschföreningen för Onlinespel (BOS), has declared its support for the Ministry of Justice's suggested stricter credit regulations.
The Swedish government's proposed regulatory changes seek to create a stricter framework for protecting consumers, particularly within the gambling sector. Under the new rules, gambling operators will be disallowed from promoting third-party sources of gambling credit.
Strengthening Responsible Gambling and Consumer Protection
Sweden's Gambling Act already restricts operators from extending credit to players for gambling. However, some platforms had been advertising third-party lenders willing to provide such credit.
Furthermore, the ministry plans to introduce a credit and debit register, referred to as the Skri Register, to further improve lenders' ability to evaluate borrowers' financial situations.
According to BOS, gambling operators could improve customer care if they are able to access the register. The body also emphasized the importance of conducting a comprehensive integrity review before extending access to the Skri Register to strike a balance between consumer protection and individual privacy.
It is in the interest of the licensed gambling companies that gambling consumers do not spend more money than they can afford. Gambling shall offer excitement, joy and entertainment in safe and secure forms. Gambling should not lead to financial worry or vulnerability. Our member companies have no interest in directly or through agents encouraging their customers to gamble on credit. Therefore, we welcome the proposals in the inquiry that have bearing on the gambling market.
BOS Rejects Credit Card Ban Proposal
The recommendations are based on a study published in July which looked into the issue of mounting consumer debt. The report put forward several suggestions to combat gambling problems, including calling for new regulations regarding marketing and credit assessments.
One of the solutions the report considered was prohibiting the use of credit cards on gambling platforms in Sweden. However, it decided not to include it in its measures because of the complexities of the current payment landscape.
BOS supported the government's decision, stating that implementing a ban on the use of credit cards for gambling would have severe and far-reaching consequences for the industry. It further argued that the move would provide a significant competitive advantage to the unlicensed sector, ultimately hindering Sweden's efforts to channel players toward licensed operators.
The organization also pointed out that the banning of third-party credit sources should not impact the use of credit cards for payment since credit card users already undergo a credit check as part of the process.
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