Sweden's Gambling Tax Hike: A "Christmas Gift" to the Black Market

Sweden's Branschföreningen för Onlinespel (BOS) has voiced its discontent with the government's plan to raise the gambling tax from 18% to 22%. According to Gustaf Hoffstedt, BOS's general secretary, this move could inadvertently favor the black market. The proposed tax hike, scheduled for implementation on July 1, 2024, has already garnered opposition from industry players.

BOS, critical of the government's understanding of the market, argues that the increased tax will weaken the legal gambling market, especially when more players are turning to unregulated black market operators. While Sweden's gambling regulator, Spelinspektionen, hasn't outright opposed the measure, it has highlighted potential repercussions. BOS, however, deems the Ministry of Finance's decision counterproductive.

In an official statement, Hoffstedt rejects the proposal, labeling it a "Christmas gift" to the black market. He emphasizes that the timing couldn't be worse, as players increasingly prefer unregulated options. Hoffstedt predicts that the proposal would only benefit unlicensed operators, further undermining legal ones.

In a separate development, BOS releases a study exposing public misconceptions about the gambling industry. The study reveals that players overestimate the prevalence of problem gambling and wrongly believe that operators retain most of the players' money. Hoffstedt stresses the need to correct these misconceptions, asserting that they contribute to public acceptance of stricter regulations, negatively impacting the industry's health.