BOS goes against proposed ban on credit cards

The Swedish Gaming Trade Association (BOS) has issued a statement last Friday opposing itself to a newly proposed government-backed ban on the use of credit cards in gambling.

According to the body, the result will be a further reduction of the competitiveness of the regulated gambling market, leading to lower channelization into licensed websites, and giving the offshore sector fresh teeth to bite into chunks of the gambling market in the country.

Worse, BOS argued that the government is effectively going against its own analysis, a document by the name of Over-Indebtedness Inquiry which, according to the trade group, suggests that the ban on credit cards seems to be detrimental to the industry and consumers, a fact upheld by the government investigation. BOS Secretary General Gustaf Hoffstedt has seen a double standard in the use of credit card bans to protect consumers.

"Interestingly, the government does not propose a corresponding credit card ban for the purchase of alcoholic beverages, which in Sweden is only offered by a retail monopoly owned and operated by the government itself," he noted in an official press statement released by the organization.

The result will be another debilitating blow to the industry, empowering the unlicensed gambling market, which already holds 41% of the online casino vertical alone.

"The risk is great that unlicensed gambling will overtake and gain a larger total market share than licensed gambling in 2024," BOS cautions. To build an industry that is resilient and future-proof, but one that also boosts the competitiveness of its own regulated market, the Swedish government would have to focus on measures that both protect consumers and don’t end up empowering rogue operators.

Yet, the discussion surrounding the issue seems to be going mostly in favor of blocking credit cards for gambling. The United Kingdom did so several years back, and the Australian Senate decided to follow suit a couple of months ago. Blocks of the use of credit cards have been hailed as smart ways for regulators and even operators to protect their consumers.

BOS’ qualms about undermined competitiveness may prove unfounded in time, although the citation of the government’s investigation does land teeth to its argument.

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