BOS rejects Swedish government’s credit card ban for gambling

Trade body claims last year’s Over-indebtedness Inquiry did not find enough reason to ban the payment method
The post BOS rejects Swedish government’s credit card ban for gambling first appeared on EGR Intel.  

The Swedish Trade Association for Online Gambling (BOS) has rejected the government’s proposal to ban credit cards being used for gambling purposes.

Back in February, the Swedish government announced it was planning to push ahead with the plan and emulate the likes of Norway.

BOS, which represents 18 gambling operators in Sweden, responded in February with its secretary general Gustaf Hoffstedt speaking out against the idea that same month, highlighting there was no proposed credit card ban for people wanting to buy alcohol.

The statement released on Thursday expanded on that point, claiming there are 310,000 Swedes addicted to alcohol compared to 40,000 with a gambling addiction.

The BOS’ latest comments come after the Swedish Gambling Authority gave its backing to the ban this week.

BOS said while it rejects the proposal, should the measure be put in place, the obligation to mediate those payments should not be met by credit card companies.

The statement also noted it is more important for people to spend money on necessities such as food and clothing as opposed to the “entertainment” industry and that measures to combat the black market must be combined with those promoting the benefits of legal operators.

With reference to the Over-indebtedness Inquiry conducted last year, which “did not find enough reason to ban the use of credit cards when gambling”, the statement claimed the use of credit cards for gambling is in fact decreasing, with those still using it tend to be older and in better financial situations.

It read: “The proposal for a ban on credit cards is not the most serious misstep in the new gambling regulation’s five-year history, and with a generally better designed gambling regulation with high channelling, Sweden could have ‘indulged’ this restriction.

“We understand the political appeal of outright banning all forms of gambling on credit. Against this must be weighed the percentages of the customer base that use credit cards as their form of payment for their licensed gambling, and how this customer base will react to a ban.

“Sweden’s largest online casino operator is, at the time of writing, likely an unlicensed gaming operator. The way the proposal in the government’s memorandum is designed, the credit card ban affects only legal gambling companies operating on the Swedish licence market.

“BOS proposes instead, in the event that the government goes ahead with a ban on credit cards when using gambling services, that the ban hits the issuers of credit cards, not the licensed gambling companies.

“In this way, it will be prohibited for issuers of credit cards, under the supervision of the Financial Supervisory Authority, to mediate payments via credit cards for all gambling companies, even the illegal and/or unlicensed gambling operators.”

The post BOS rejects Swedish government’s credit card ban for gambling first appeared on EGR Intel.

 

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