The government of Sweden (Regeringen) is mulling proposals to hike the gambling tax rate from 18 percent to 22 percent of gross gaming revenue (GGR), iGaming Business reported September 21.
If the government’s proposal is approved it would go into effect next July. Regeringen estimates this could add SEK540.0 million ($48.4 million) to the national treasury.
The government argued that the time has come because the market should have stabilized since it was deregulated and opened to licensed operators in 2019.
The government said in a statement: “The current tax rate of 18 percent has applied since the Swedish gambling market was reregulated in 2019.” It added, “The gambling market has since stabilized and channelization has increased significantly. In addition, measures have been taken to exclude unlicensed gambling from the Swedish market, which came into effect on 1 July 2023.”
It added, “The reasons for caution when setting the tax level should therefore not be as strong now as during the reregulation. An increase from 18 percent to 22 percent is judged to be at a suitable level to strengthen the financing of government activities, without it leading to too great an impact on the companies and the size of the tax base.”
Members of the industry don’t agree. “Online Gaming Industry Association (BOS) Secretary-general Gustaf Hoffstedt advised the government to think again, iGaming Business reported.
He declared, “The announcement from the government is deeply disappointing. Above all, it shows the government does not understand or has taken to heart what kind of market it is set to govern. Even less has the government understood the vulnerable position that market is in.”
It noted that in June it reported that 77 percent of the market is channelized, which BOS called “critically low.”
It concluded with “If this tax increase is approved by the Riksdag, we will soon be down to the channelization we had before Sweden reregulated its gambling market in 2019.”
