Sweden Proposes 22% Increase in Gambling Tax
Date: 2023-09-21 Author: Dima Zakharov Categories: EVENTS
In a significant move, the Swedish Government has unveiled a proposal to hike the gambling tax in the country from the current 18% of gross gaming revenue (GGR) to 22%. This announcement has created a buzz in the gambling industry, sparking both support and criticism.
The government's rationale behind this decision is rooted in its belief that the gambling market in Sweden has attained stability following its re-regulation in 2019. They attribute this newfound stability to the commendable channelisation rates prevalent in the market.
However, not everyone is applauding this decision. The Swedish Trade Association for Online Gambling (BOS), led by Secretary General Gustaf Hoffstedt, has expressed profound disappointment. Hoffstedt argues that the government's decision demonstrates a lack of understanding of the industry and could potentially jeopardize its future.
Recent data reveals that channelisation in Sweden's gambling market currently stands at 77%, with some sectors, notably online casinos, struggling at 72%. These statistics fall short of the government's initial target of achieving at least 90% channelisation.
Hoffstedt emphasizes that if the Riksdag (Sweden's national legislature) approves the proposed tax hike, the industry might regress to the low channelisation rates witnessed before the 2019 re-regulation.
He passionately urges the government to reconsider its decision, highlighting the severe impact this tax increase could have on an industry already grappling with substantial challenges.
The proposed tax increase is scheduled to come into effect on 1 July 2024, at which point the tax rate will surge from 18% to 22% of the balance for each tax period. The government intends to present this proposal to the Riksdag for further deliberation in the spring of 2024.
The government's rationale behind this decision is rooted in its belief that the gambling market in Sweden has attained stability following its re-regulation in 2019. They attribute this newfound stability to the commendable channelisation rates prevalent in the market.
However, not everyone is applauding this decision. The Swedish Trade Association for Online Gambling (BOS), led by Secretary General Gustaf Hoffstedt, has expressed profound disappointment. Hoffstedt argues that the government's decision demonstrates a lack of understanding of the industry and could potentially jeopardize its future.
Recent data reveals that channelisation in Sweden's gambling market currently stands at 77%, with some sectors, notably online casinos, struggling at 72%. These statistics fall short of the government's initial target of achieving at least 90% channelisation.
Hoffstedt emphasizes that if the Riksdag (Sweden's national legislature) approves the proposed tax hike, the industry might regress to the low channelisation rates witnessed before the 2019 re-regulation.
He passionately urges the government to reconsider its decision, highlighting the severe impact this tax increase could have on an industry already grappling with substantial challenges.
The proposed tax increase is scheduled to come into effect on 1 July 2024, at which point the tax rate will surge from 18% to 22% of the balance for each tax period. The government intends to present this proposal to the Riksdag for further deliberation in the spring of 2024.
