In response to mounting concerns over the intertwining issues of gambling addiction and financial distress, Sweden’s Ministry of Finance has put forth a memorandum advocating for a sweeping ban on using credit for gambling activities.
The proposed measure, aimed at mitigating the risks associated with gambling-related indebtedness, seeks to safeguard individuals from the adverse effects of excessive gambling.
Over recent years, the detrimental impacts of gambling addiction have garnered increased attention in Sweden, emerging as a pressing public health concern. Studies have shown a troubling correlation between gambling problems and over-indebtedness, with individuals facing gambling issues being at heightened risk of financial hardship, and vice versa.
“Gambling for money on credit can lead to great financial difficulties. Therefore, we are now stopping that possibility. It is not reasonable for gambling companies or gambling agents to contribute to individuals taking such large risks,” remarked Minister of Financial Markets Niklas Wykman.
The memorandum seeks to build upon existing regulations, which already prohibit Swedish-licensed gambling entities from extending credit for gambling purposes. However, recognizing the need for more robust measures, the proposed ban aims to close potential loopholes and strengthen consumer protections.
The measure advocates for a comprehensive prohibition on receiving payments financed with credit, encompassing all forms of credit provision, including credit cards.
This proposed ban aligns with the government’s broader efforts to promote responsible gambling practices and protect vulnerable individuals from the adverse consequences of excessive gambling. By curbing the availability of credit for gambling activities, the ministry aims to deter individuals from engaging in high-risk behaviors that could lead to financial ruin.
Furthermore, the memorandum proposes empowering the Gambling Inspectorate to establish stringent requirements for gambling companies’ duty of care obligations. This measure seeks to ensure that companies actively discourage excessive gambling and implement comprehensive action plans to fulfill their responsibilities effectively.
The proposed constitutional amendments are slated to roll out in two phases, with the authorization scheduled for 1st September 2024 and the full credit ban set to take effect on 1st April 2025.
Original article: https://www.yogonet.com/international/noticias/2024/02/28/71015-swedens-ministry-of-finance-proposes-extensive-credit-gambling-ban-to-address-indebtedness
