The Swedish iGaming trade group, BOS, is resisting the government’s proposal to boost gaming levies. They contend that increasing duties will solely advantage unlawful wagering platforms, pushing gamblers toward these unregulated websites.
The suggested scheme, slated to be enforced in July 2024, would witness gaming taxes climb from 18% to 22%. Gustaf Hoffstedt, BOS General Secretary, maintains that this contradicts the government’s stated objectives for a more secure gaming sector. He highlights that numerous stakeholders, including the Swedish Gaming Authority, concur that this tax hike will diminish the regulated market and enlarge the illicit gambling sphere.
Initially, the Swedish administration aimed to maintain illegal gambling below 10% of the overall market. BOS posits this target is now unattainable if the tax escalation proceeds. Their figures demonstrate that in March of this year, the regulated market only represented 77% of all gambling, with internet casinos plummeting even further to 72%.
Hofstetter also mentioned a Copenhagen Economics analysis that suggests an ideal tax range for nations to maintain, falling between 15% and 20%.
Exceeding the 20% threshold, he explained, leads to diminished channeled income and, over time, reduced overall tax revenue, as per the traditional Laffer Curve principle.
No data supports the notion that the Swedish government can currently implement a policy deviating so drastically from the study’s recommended tax bracket without negatively impacting the regulated market, especially compared to the period before Sweden’s gambling market reforms.
Hofstetter was a guest on the Huddle podcast in October when the proposed tax measures were initially unveiled.
