Sweden is tightening its grip on gambling, approving a widespread ban on the use of credit just as the country moves to wind down its land-based casino industry.
Earlier this month, the Riksdag signed off on changes to the gambling law that will make it illegal for licensed operators and their agents to allow bets or games funded by credit. The new rules take effect May 1, 2026.
In practical terms, that means any company with a Swedish gambling licence, along with agents selling gambling products on their behalf, must guarantee players are not staking money they have borrowed. The prohibition applies regardless of where the credit comes from.
The update closes gaps in the current system, as operators were already barred from offering credit directly to customers. Now, they are also forbidden from facilitating gambling financed through loans or other borrowed funds supplied by third parties.
Sweden cracks down on credit and risks amid wider gambling reform
Under the revised framework, licensed companies are expected to put concrete safeguards in place. This could involve blocking credit card payments for gambling transactions or declining bets when there are clear signs a player is using borrowed money.
The expanded ban applies across the board to all licence-required gambling, whether offered online or through physical sales agents. However, Sweden’s Gambling Authority, Spelinspektionen, will retain the power to grant limited exemptions. Operators licensed for public benefit purposes, such as certain charity lotteries, may qualify for exceptions if there are compelling reasons.
Activities that fall outside the licensing system, including municipal register lotteries, will not be covered by the new restriction.
The tougher stance comes amid mounting concern about gambling-related debt. Lawmakers and consumer advocates have argued that easy access to credit can accelerate financial harm, particularly for vulnerable players who may already be struggling. By cutting off credit-fueled betting, policymakers hope to curb spiraling indebtedness before it starts.The timing of the reform is notable. Sweden is also in the process of shutting down its remaining land-based casinos. The government has decided that all state-run Casino Cosmopol venues will close by 2026, essentially ending an era for brick-and-mortar casino gambling in the country. The closures reflect declining visitor numbers and a steady move toward online play.
Featured image: Canva
