18 percent tax on GGR
A study conducted by the government of Sweden recommends that the country establish a licensing regime for online gaming that would also virtually end Svenska Spel’s monopoly in the industry.
Licensed online operators would pay a tax rate of 18 percent of gross gaming revenue under the plan. According to the report, the tax would be coupled with “regulation that does not entail an excessive administrative burden.” As a result, the report continued, “the inquiry anticipates a channeling degree on the competitive market of 90 percent.”
The conclusions were approved by private operators, Svenska Spel and the horseracing industry, according to local media. Pia Rosin, vice president of corporate communications at Betsson, told Gambling Compliance, “All in all, we consider the report to be well-balanced and a good compromise.”
The recommendations call for licenses for betting and online casino games including poker, bingo and slots to become effective in January 2019. Land-based sports and horse race betting would also be opened up to private operators. Software providers would also require licensure.
Licensing fees for operators would depend on turnover and the number of games and range from SEK 60,000 (US$6,835) to SEK 700,000 (US$80,000), in addition to an annual supervision fee of SEK 30,000 to SEK 1 million.
Svenska Spel would retain its control of land-based casinos and gaming machines as well as lotteries, but would compete with private licensees on the newly regulated online market.
“All and all we think the proposal is positive for both Svenska Spel and for the gambling industry,” said Svenska Spel CEO Lennart Käll. “With equal rules for everybody, we look forward to introducing new gambling categories such as online casino, where we currently have no offer.”
But some are concerned that Svenska Spel and horseracing operator ATG have a head start in the market thanks to “decades of protected monopolies,” said Gustaf Hoffstedt, secretary general of the Swedish Trade Association for Online Gambling. He called the tax rate “acceptable,” but added, “There is a clear correlation between the level of tax and whether players decide to play inside or outside the licensed system, as the tax increases the cost of the games.”
