Sweden Moves to Ban Credit-Funded Gambling from May 2026
Sweden has approved a nationwide ban on credit-funded gambling, with the new rules taking effect on May 1, 2026.
LISTEN TO THIS ARTICLE:The change forces licensed operators to overhaul payment systems and prevents players from using borrowed money to place bets.
The amendment updates Sweden’s Gambling Act of 2018 and represents one of the country’s most aggressive responsible gambling measures to date.
The reform follows last year’s government proposal to tighten enforcement, when officials first outlined plans to expand the existing credit restrictions under Sweden’s gambling framework.
Closing a Long-Standing Loophole
Under the previous framework, operators were already prohibited from offering direct credit to customers. However, regulators observed that players continued funding accounts through external credit cards and personal loans.
Lawmakers concluded that this workaround undermined the original intent of the legislation. The updated law now blocks all gambling activity financed by borrowed funds, regardless of the source.
By targeting third-party credit rather than just operator-issued advances, the government aims to reduce the risk of severe personal debt tied to betting activity.
Digital Platforms Face Immediate Pressure
Online casinos and sportsbooks licensed in Sweden must now introduce systems capable of detecting and rejecting credit-based deposits automatically. That includes blocking transactions processed via credit cards and identifying other forms of borrowed financing.
Software teams are expected to modify payment gateways, update fraud-detection filters and implement automated rejection protocols before the May deadline. Failure to comply could lead to enforcement action from Sweden’s gambling regulator, Spelinspektionen.
For operators, the coming months will involve significant compliance work, particularly for platforms handling high digital transaction volumes.
Retail Shops Must Inform Players
The reform does not apply only to digital betting. Physical betting shops must display clear in-store notices explaining that credit-funded gambling is prohibited.
Online platforms will also be required to communicate the rule change directly to customers, including visible warnings during deposit processes. Regulators want players to understand that only funds already available in their accounts may be used for gambling.
Spelinspektionen has instructed all licensed companies to conduct internal reviews of existing payment methods and ensure complete alignment with the new requirements.
More Regulation
Limited Exceptions Remain
While the legislation is broad, it does not cover every form of gambling activity. The focus is on commercial operators holding national licenses.
Certain public-benefit games may qualify for exemptions, including specific charity lotteries. Municipal registration lotteries that operate outside the standard licensing system are also not directly targeted.
Regulators have made clear that the primary objective is to address large-scale commercial gambling environments where high transaction volumes increase financial risk exposure.
A Consumer Protection Strategy
Swedish authorities cited a rise in problem gambling and debt accumulation as the driving force behind the amendment. Policymakers argue that credit access fuels impulsive betting and loss-chasing behavior.
Addiction specialists have welcomed the measure, noting that the removal of credit reduces immediate financial escalation during high-risk gambling sessions. Requiring players to use debit cards or direct transfers introduces a natural financial boundary.
Government officials have indicated they will monitor debt and gambling harm indicators following implementation. If the reform proves effective, further tightening of payment regulations could follow.
For now, the focus remains on compliance. With May 2026 approaching, operators across Sweden’s regulated market must adapt quickly to a payment environment where borrowed money is no longer part of the equation.
RELATED TOPICS: Regulation
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