Sweden is preparing to implement one of Europe’s toughest restrictions on gambling-related payments. A bill introduced by the government will prohibit the use of all forms of credit for gambling, closing a loophole that had previously allowed players to continue betting with borrowed funds. Once the new rules are in force on 1 April 2026, gamblers will no longer be able to use credit cards, bank overdrafts, buy-now-pay-later products, or loans to finance play in the licensed market.

Closing Loopholes Left by Earlier Rules

The country’s Gambling Act already barred operators from directly extending loans to customers, yet players could still gamble with credit cards or third-party financing. This limited approach was widely criticised by consumer groups and regulators, who argued that the partial ban left vulnerable individuals exposed to debt risks. The proposed legislation takes a comprehensive approach by outlawing all forms of credit use in gambling.

Operators and licensees will be required to block transactions funded by credit and adopt preventive measures against such practices. The bill also prohibits companies from steering players toward lenders. The Ministry of Finance clarified the purpose in direct terms: “The purpose of the new regulation is to prevent indebtedness due to gambling for money.”

To reinforce compliance, operators must adapt their payment systems to distinguish debit from credit-based transactions in real time. They will also be expected to use monitoring tools and exercise their duty of care when players show signs of financial distress.

Under EU rules, member states must notify Brussels of any national measure that might impact the free movement of services. Sweden did so, and the European Commission raised no objections. While this is not a formal endorsement, the lack of opposition allows Sweden to proceed without risking infringement proceedings. The response also signals recognition that consumer protection and debt prevention are legitimate objectives in line with EU principles.

The Swedish Gambling Authority, Spelinspektionen, welcomed the intention of the reform but stressed the need for clarity, particularly on what constitutes “credit” and how operators are expected to detect misuse. Its conditional support underscores the challenges ahead for consistent enforcement.

Spelinspektionen will work closely with Finansinspektionen (the Financial Supervisory Authority) and Konsumentverket (the Consumer Agency) to oversee compliance, combining financial oversight, consumer protection, and responsible gambling enforcement.

Industry Reaction and Challenges

Licensed operators face a complex transition. Compliance will require not only blocking credit card payments but also detecting funds that may originate from loans once transferred into bank accounts. Mobile payments and e-wallets add further complexity. Industry body Branschföreningen för Onlinespel (BOS) has backed the principle of protecting consumers but warned that operators cannot shoulder the responsibility alone. BOS has argued that credit issuers should share enforcement duties, otherwise players may shift toward unlicensed operators where restrictions do not apply.

The new rules will come into effect in April 2026, but some measures may be phased in earlier, beginning in autumn 2025. This transitional period is intended to give the industry time to renegotiate contracts with payment providers and implement new monitoring systems.

Enforcement will be strict. From 2026, Spelinspektionen will gain expanded powers to sanction operators that fail to comply, including fines, suspensions, and even licence revocations. Transparency will increase as violations of the credit ban are expected to be made public.

The Swedish reform follows a broader European debate on the compatibility of gambling and credit. As reported by Sigma, the United Kingdom outlawed credit card gambling in 2020, and other countries are considering similar measures. However, while most jurisdictions target only specific payment methods, Sweden’s model goes further by banning all forms of credit across the board.

The reform builds on the findings of SOU 2023:38, also known as the Överskuldsättningsutredningen, which revealed a clear connection between gambling-related debt and long-term financial harm. Its conclusion was stark: only a total ban could provide genuine consumer protection. The report reinforced earlier recommendations from the Spelmarknadsutredningen, which had already called for stricter rules around advertising and unlicensed operators.

By expanding its restrictions, Sweden also aims to improve channelisation rates, which had slipped to 85% in 2024. To support this, the government has proposed extending the Gambling Act to criminalise unlicensed operators that passively accept Swedish players. This measure has been welcomed by BOS, which sees it as critical to limiting the black market.