Sweden’s Riksdag has approved a comprehensive ban on gambling with credit, closing a loophole in the 2018 Gambling Act that allowed players to fund bets through credit cards, loans, overdrafts, and buy-now-pay-later products. The amendment takes effect on 1 May 2026.
What Changes on 1 May 2026
The existing Gambling Act already prohibited licensed operators from directly extending credit to players. However, players retained the ability to use credit obtained elsewhere — from credit cards, bank loans, overdrafts, or BNPL facilities — to fund gambling accounts. That gap is now closed.
From 1 May, licensees and gambling agents are prohibited from accepting bets known to be financed with borrowed funds. Operators processing online payments must block credit cards at the deposit stage. The law extends to any form of credit agreement with a third party, including arrangements where borrowed funds are transferred into a bank account before being deposited with a gambling platform.
Operators are also prohibited from directing players toward lenders. The Ministry of Finance stated the purpose directly: “The purpose of the new regulation is to prevent indebtedness due to gambling for money.”
Operator Compliance Obligations
Every licensed operator must review its payment systems and implement risk-based measures to prevent credit-funded transactions. In practice, this means real-time detection of credit card deposits, monitoring for signs of borrowed funds in KYC and AML procedures, and enhanced duty-of-care protocols when players show indications of financial distress. Operators are not required to carry out invasive investigations into players’ personal finances, but must act on clear signals.
Spelinspektionen, the national gambling regulator, will oversee enforcement with support from two additional bodies. Finansinspektionen, the financial supervisory authority, will monitor credit institutions and payment service providers. Konsumentverket, the consumer agency, will cover marketing compliance and responsible gambling standards. Violations will be made public, with penalties ranging from financial fines and temporary suspensions to full licence revocations.
Why Sweden Moved Now
The legislation draws directly from two pieces of evidence. Kronofogden, the Swedish Enforcement Authority, reported that consumer debt reached a record SEK 138bn ($14.7bn) in January 2025. A Public Health Agency survey found that between 3% and 4% of the Swedish population aged 16 to 84 experienced some degree of gambling problem, with those who played slot machines and casino games accounting for 40% of that group.
The reform also follows the Överskuldsättningsutredningen — a government inquiry into credit use in gambling and over-indebtedness — which concluded that only a total ban could provide meaningful consumer protection.
Sweden had attempted similar legislation before. A comparable proposal was put forward in early 2024 but failed to pass, partly because of regulatory concerns about how “credit” was defined. The current bill resolves that ambiguity by targeting all forms of borrowed funds regardless of the mechanism.
Sweden as a European Benchmark
Sweden is positioned as the first EU member state to impose a complete prohibition on credit-funded gambling across all payment types. The UK banned credit card gambling in 2020, but that measure was limited to credit cards specifically. Sweden’s version extends to loans, overdrafts, and BNPL products, making it the broadest restriction of its kind in Europe. The European Commission raised no objections during the mandatory EU notification process, allowing the legislation to proceed without the risk of infringement proceedings.
The reform fits a pattern of tightening regulatory oversight in Sweden. From 1 January 2026, Spelinspektionen received expanded enforcement powers. Separately, the government is amending the Gambling Act to remove the so-called directional criterion, which will extend Swedish regulatory jurisdiction to unlicensed remote operators that accept Swedish players regardless of where they are incorporated.
Sweden’s Q3 2025 gambling revenue grew just 0.5% year-on-year, already reflecting the pressure of a tightening regulatory environment.
Industry Concerns
Industry body Branschföreningen för Onlinespel (BOS) has backed the principle of consumer protection but warned that placing the full compliance burden on operators may be insufficient. BOS argued that credit issuers should share enforcement duties, and that if the burden remains solely with licensed operators, some players may migrate to unlicensed platforms where restrictions do not apply. Spelinspektionen’s Acting Director General Johan Röhr, who succeeded Camilla Rosenberg in November 2025, will lead the implementation of the new framework.
Charity lotteries and other licensees operating for public benefit purposes may be eligible for exemptions from the ban, subject to Spelinspektionen’s discretion.
Operators have until 1 May 2026 to update payment systems and demonstrate compliance. How effectively the ban is enforced — and whether it drives a measurable reduction in gambling-related debt — will be a reference point for other European jurisdictions considering similar measures. The broader European regulatory tightening trend makes Sweden’s model worth watching closely, as does the Dutch experience with channelisation, where tighter rules pushed players toward unlicensed operators.
Source: Spelinspektionen
