Swedens administration is encountering opposition from internet gaming businesses regarding their suggestion to prohibit the utilization of credit cards for wagering. The Treasury Department asserts that this action is essential to safeguard customers from accumulating unmanageable debt. They cite the United Kingdom, which outlawed credit card gambling in 2020 with minimal pushback from the sector.
Nevertheless, the Swedish online gaming industry organization, BOS, is protesting vehemently. This represents a shift in stance, as they formerly endorsed other credit regulations intended to shield consumers. It appears their backing for consumer safeguards only extends as far as it doesn’t impact their profits.
Its genuinely disgraceful that the administration has opted to ignore the counsel of its own specialists,” stated Gustaf Hoffstedt, Chief Executive of BOS, a Swedish business group for internet gaming providers. “Their suggestion to prohibit the utilization of credit cards for wagering directly opposes the conclusions of their own inquiry. It’s also rather revealing that they haven’t put forth a comparable prohibition on using credit cards to buy spirits, particularly given that in Sweden, alcohol can only be acquired through Systembolaget, the state-controlled alcohol retail monopoly.”
Hoffstedt added, “This action only serves to empower the unregulated gaming sector, which already represents a shocking 41% of the online gambling arena. If this pattern persists, we could witness unregulated gaming surpassing the regulated market by as soon as 2024. This is a profoundly worrisome possibility. The administration needs to redirect its attention, exhibit its backing for licensed gaming enterprises, and prioritize the well-being of consumers.”
This is not the initial instance where Hoffstedt has voiced opposition to the government’s management of the gaming industry. In the previous year, he was featured on The Huddle, a well-known industry podcast, to advocate for Swedish operators and critique the government’s choice to raise the gaming levy from 18% to 22%.
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