Spelinspektionen is closely monitoring the Swedish gambling market in light of new restrictions, including a proposed ban on using credit cards for gambling. The Swedish Gambling Authority has penalized gambling content providers Hacksaw Gaming and Panda Bluemoon for supplying their products to unlicensed casino operators.
Hacksaw Gaming, a premier creator of online scratch cards, slots, and instant win games, came under the regulatory scrutiny of Spelinspektionen in January of the current year. The gaming studio suffered a fine of SEK 2.6 million for making its content accessible to illegal gambling sites. While the company has fully cooperated in the investigative process, it was quick to point out that it was not entirely its fault, as it could not control how its partners complied with regulations. The gaming provider hurried up to resolve the issue and prevent further complications.
Similarly, the regulator’s investigation into the affairs of Panda Bluemoon was launched in January, resulting in a penalty of SEK 700,000. The iGaming supplier received an official warning and a monetary penalty for supplying its software to entities that did not hold a valid Swedish license.
Since the start of 2024, Spelinspektionen has banned six unlicensed operators from the Swedish market, the most recent being WiseAvant OÜ for providing games of chance to Swedish players without authorization.
The SGA and BOS Respond to the Proposed Ban on Using Credit Cards for Gambling
The Swedish Gambling Authority has published its official response to the government measure that would ban using credit cards for gambling purposes. The proposal has been the subject of discussions over the last few months. While the regulator backed the prohibition, it also called for more clarity on implementing the new rules and regulations.
In its statement, the authority highlighted the lack of “analysis regarding the consequences that this situation may entail for the public benefit lotteries”. Furthermore, Spelinspektionen drew attention to the interpretation of the term “credit”, specifying that credit linked to a bank account also falls under the same category.
Similarly, last week, the Swedish Trade Association for Online Gambling (BOS), representing 18 licensed gambling operators, responded to the Ministry of Finance’s memorandum, A new ban on gambling on credit. Sweden’s largest gambling association has firmly rejected the proposal.
The reasoning behind the rejection was that “in the practically cashless Sweden, the credit card was the customary means of payment of our time”. Furthermore, as Gustaf Hoffstedt, Secretary General of BOS, explained, the credit card ban would negatively impact the channelization rate of the market or the percentage of Swedish players gambling with licensed operators.
If legislators proceed with the proposal, credit card issuers should be responsible for preventing using credit cards for gambling rather than gambling operators, as BOS recommends.
