Gambling taxes raised significantly in Sweden
The Swedish government has decided to increase the gambling tax from 18% to 22% from July 1, 2024. Lawmakers hope to make more money this way. The Swedish gambling association (BOS) for online gambling, is raising the alarm. This warns of the adverse consequences and fears that players will end up in the illegal sector, endangering gambling companies.
Is the Swedish gambling market ready for a tax increase?
The Swedish online gambling market has been regulated since 2019. The BOS believes that the market is not yet stable enough to bear a higher tax and foresees major problems. They fear that this will lead to excesses.
- An increase in illegal gambling where players can switch to illegal providers who do not have to pay taxes.
- A decrease in the number of legal players. The higher tax makes legal providers less attractive. This allows players to stop gambling or switch to illegal providers.
- A loss of jobs. The legal gambling sector in Sweden employs thousands of people. A contraction of the market could lead to job losses.
The BOS advocates a different approach
Instead of increasing taxes, the BOS advocates more intensive cooperation between the government and legal gambling companies.
- Better compliance with regulations: Illegal providers can be dealt with harder and players can be better protected.
- An attractive legal market where legal providers can offer more innovative products and services.
- Higher tax revenue in the long term. A healthier legal market ultimately allows the government to collect more tax money.
The future of online gambling in Sweden
The decision of the Swedish government to increase the gambling tax is controversial. Only time will tell whether this will completely derail the legalization of online gambling in the country.
BOS Secretary General, Gustaf Hoffstedt hopes that the government will still listen to its arguments and opt for a different approach.