Swedish Gaming Industry Supports Stricter Lending Rules to Protect Consumers

The Swedish Organization of Online Gaming Businesses (SOOGB) has voiced its backing of stricter lending rules to safeguard users from the risks of risky borrowing and overwhelming debt. As the biggest representative group for the gaming sector in Sweden, SOOGB represents approximately 20 gaming entities licensed by the Swedish Gaming Authority (Spelinspektionen).

These modifications intend to establish a significantly more robust safety mechanism for consumers, especially within the realm of gambling. Suggested actions include prohibiting third-party promotion of gambling credit and forming a debt database in Sweden.

Gustaf Hoffstedt, Chief Executive of SOOGB, conveyed his concurrence with all the suggestions presented in the investigation, particularly those directly pertaining to the gaming sector.

One notable suggestion involves broadening the credit prohibition within the Gambling Act to include external parties.

Moreover, the investigation examined the feasibility of outlawing the utilization of credit cards for wagering. SOOGB endorses the proposition to dismiss this ban, contending that it would be both unfeasible and potentially advantageous to unlicensed providers.

An additional suggestion proposes the creation of a debt and credit database called Skri register, designed to assist lenders in more effectively evaluating the financial stability of borrowers.

Gustaf Hoffstedt, the leader of the Swedish Betting Association (BOS), has backed the idea of allowing licensed gaming firms to use the self-ban system, Spelpaus. He contended that this access would be crucial in spotting individuals attempting to bypass their self-imposed restrictions by utilizing platforms run by unauthorized providers.

However, Hoffstedt also emphasized the importance of a comprehensive ethical evaluation before widening access to Spelpaus. This analysis, he clarified, should seek to find a middle ground between strengthening consumer safeguards and protecting individual confidentiality.

The Swedish Betting Association has also signaled its agreement with treating money laundering infractions the same as gambling violations. This position, outlined in their prior feedback on the suggested changes to the Money Laundering Act, highlights the association’s dedication to stopping financial wrongdoings within the gaming industry.

Moreover, the association advised that punishments for breaches of anti-money laundering rules should be decided by factoring in the overall gaming income. This implies a shift towards a more balanced and impactful penalty framework.

Regarding the matter of market control, the Swedish Betting Association disclosed that the current rate for internet-based gambling in Sweden is at 77%. This number falls short of the government’s objective of 90%.

The association warned that the proposed rise in gambling levy from 18% to 22% of gross gaming earnings could adversely affect market control. This, they reasoned, could potentially result in a return of the difficulties encountered before the restructuring of the Swedish gambling market in 2019.