Sweden Considers Possible Gambling Tax Cut to Combat Illegal Gambling
Date: 2024-10-04 Author: Alex Crawford Categories: EVENTS
Swedish MP Carl Nordblom has proposed lowering the gambling tax to allow operators to offer more competitive terms, which in turn should help legal players cope with the black market.
The proposal comes just months after the gambling tax was raised to 22%, when the government ignored warnings from the sector. According to a recent report from Spellinspektion, Sweden’s gambling regulator, the country’s regulation is indeed improving under the new methodology, but still falls short of the desired level.
The regulator says the sewerage rate is 86%, although some estimates, including those from industry association BOS, suggest the figure could be significantly lower. MPs like Nordblom doubt that the legal gambling industry can cope on its own.
“Most players have warned that the sewerage rate, i.e. the amount of gambling taking place on the licensed Swedish market, is declining,” he said. To support the industry, legislators may have to make a U-turn as they struggle to interpret data from the sector.
The argument is that government pressure on the regulated market is not stopping operations in offshore markets, which means that players continue to move away from less competitive offerings in the licensed segment. Some experts believe it is a mistake to hinder providers to ensure that their games are not used by offshore companies targeting the regulated market.
In addition, the BOS claims that the tax increase in July will lead to a 2.5% decrease in the sewerage rate, which in turn will worsen gambling problems. While these data are difficult to confirm, the bleak forecasts are also not helping the industry. Nordblom's tax cut proposals are not anti-competitive or harmful based on the data available.
However, the solution to sewage reduction is not limited to adjusting the tax rate alone. More action is needed. The Spelispektsioner has long recognized the complexity of the problem and has committed to studying the black market more closely to determine the best course of action to address it.
