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September 22, 2023

Swedish Government Announces Proposals to Raise Tax on Gambling Activities

Chloe O'Sullivan
Written byChloe O'SullivanWriter
Researched bySamuel AdeoyeResearcher

The Swedish administration has proposed a hike in the gaming tax rate paid by authorized operators from 18% to 22% of the GGR (Gross Gaming Revenue). This was announced on September 20 in the Government's 2024 budget plan.

Swedish Government Announces Proposals to Raise Tax on Gambling Activities

According to the Government's proposal, previous research has shown that an increased tax rate close to 4% might be reasonable in light of Sweden's goal to gain at least 90% channelization.

Studies have revealed that the level of channelization in Sweden's gambling industry is 77%, with specific areas, such as casino sites, having a lower channelization rate of 72%. These numbers do not meet the Government's initial aim of channelization.

In 2019, Sweden re-regulated its gambling sector, introducing a new 18% tax rate on all operators. Following the relaunch, operators were mandated to apply for new licenses from the Swedish Gambling Authority, paying 700,000 Kronor for sports betting and casino games.

Gustaf Hoffstedt, Secretary General of the Swedish Trade Association for Online Gambling (BOS), has expressed deep disappointment over the Government's decision, arguing that it puts the industry in a precarious position and demonstrates a lack of understanding concerning the market they are trying to regulate.

“We were recently able to show that channelization in the Swedish gambling market is 77 per cent. Some gambling verticals, including online casino, are as low as 72 per cent. The trend is also declining, in other words, the channeling decreases over time.”

Hoffstedt implored the Government to reconsider their position, as there is still time to abandon the proposal. He emphasized the detrimental outcomes this tax increase would have on an industry already struggling with numerous hindrances.

The Government of Sweden has announced that it will table the 22% increase in gaming tax before the Riksdag for further deliberation in the spring of 2024.

Increased gambling tax is one of the many proposals aimed at streamlining the gambling industry in Sweden. In July this year, the Ministry of Finance tabled a proposal to ban credit cards from all gambling transactions in the country. The Government said this encourages gamers to take credits to facilitate their gambling spend.

About the author
Chloe O'Sullivan
Chloe O'Sullivan
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Chloe "LuckyLass" O'Sullivan, with her Irish charm, has an uncanny ability to spot the rising stars in the casino universe. As a core writer for NewCasinoRank, she delves deep into new platforms, ensuring readers get the first glimpse of tomorrow's top casinos today.

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