The Swedish trade association for online gambling, known as BOS, has thrown its weight behind the Ministry of Justice’s proposal to bolster consumer protection against risky lending and over-indebtedness. BOS represents approximately 20 licensed gambling companies in Sweden, making it the largest trade association within the industry.
Strengthening Consumer Protection:
The proposed regulatory changes aim to establish a more robust framework for consumer protection, with a specific focus on the gambling market. These changes include a ban on third parties promoting credit for gambling and the introduction of a debt register in Sweden.
BOS’s Support for the Proposals:
Gustaf Hoffstedt, the Secretary General of BOS, expressed full support for all the proposals within the inquiry, particularly those directly impacting the gambling sector. One of the key proposals is to extend the credit prohibition in the Gambling Act to encompass third parties.
A Consideration on Credit Card Gambling:
The investigation also considers whether credit card gambling should be banned. BOS concurs with the proposal to reject such a ban, deeming it impractical and a potential benefit to unlicensed operators.
Introduction of a Debt and Credit Register:
The introduction of a debt and credit register, known as the Skri register, is another pivotal proposal. This register aims to improve lenders’ assessment of borrowers’ financial situations.
Access to the Skri Register:
Hoffstedt noted that BOS supports the idea that licensed gambling companies should have the ability to access information in the Skri register. However, BOS emphasizes the need for a comprehensive integrity review before expanding access to the Skri register, to ensure a balance between consumer protection and individual privacy.
Prior Advocacy for Anti-Money Laundering (AML) Measures:
In the past, BOS has advocated for elevating anti-money laundering violations to the same level as gambling violations. They have also called for penalty charges for AML breaches to be based on gross gaming revenue.
Channelisation Rate Concerns:
BOS has reported on Sweden’s channelisation rate in online gambling, highlighting that it stands at 77%, falling short of the government’s 90% target. They believe that the proposed increase in gambling tax, from 18% to 22% of gross gaming revenue, could negatively impact channelisation and potentially lead to challenges similar to those faced before the 2019 re-regulation.
BOS’s support for stricter consumer protection measures underscores the industry’s commitment to fostering responsible gambling practices in Sweden. These proposed changes, including the ban on third parties promoting gambling credit and the introduction of a debt register, are seen as important steps in safeguarding consumers. However, careful consideration is needed to strike a balance between consumer protection and individual privacy, as well as addressing challenges such as channelisation rates and taxation within the industry.