Swedish online gambling body supports proposed credit rules

Sweden intends to stop gambling operators from promoting lenders.
Sweden intends to stop gambling operators from promoting lenders.

BOS has expressed support for proposals to prohibit the promotion of third-party sources of credit for gambling.

Sweden.- The online gambling trade association Branschföreningen för Onlinespel (BOS) has voiced support for proposals to tighten credit rules for the sector. The Ministry of Justice has proposed new rules to prevent gambling operators from promoting third-party sources of credit.

Under the Gambling Act, operators cannot directly offer credit to gamble, but some operators have promoted third-party credit providers. As well as banning this practice, the proposed reforms would also include the creation of a new credit and debt register called the Skri Register.

The ministry’s proposals come after a study into excessive consumer debt made a number of recommendations. BOS secretary-general Gustaf Hoffstedt said the body welcomed the move.

He said: “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 a bearing on the gambling market.”

The trade body said Skri Register would improve lenders’ ability to assess customers’ financial position and said that it could improve gambling operators’ duty of care if they are able to access the register.

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

BOS also welcomed the report’s recommendation not to ban the use of credit cards for gambling. It said that such a move would have “draconian consequences” and would give a competitive advantage to unlicensed operators. It noted that credit card users face a credit check when using credit to gamble.

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