Swedish Trade Association for Online Gambling (BOS) rejects Government plans for higher gambling taxes. The Government’s proposal, known as the Increase in Gambling Tax Memorandum, suggests raising taxes on gambling from 18% to 22% starting in July 2024.
Gustaf Hoffstedt, BOS Secretary General, argues that this tax increase contradicts the Government’s objectives for the gambling market. He explains that increasing taxes on gambling will lead to reduced participation in the regulated Swedish market, while benefiting the unlicensed and illegal gambling sector.
The Government initially aimed for only 10% of gambling to be conducted illegally, but BOS expects this number to rise due to the new tax plans. BOS points out that the percentage of legal and regulated gambling has already fallen, with only 77% of competitive gambling and 72% of online casinos currently operating legally.
Hoffstedt cites a report by Copenhagen’s Economics that recommends a tax rate between 15% and 20%. He warns that exceeding this range will result in decreased channelisation and long-term revenue loss. He asserts that there is no evidence to suggest the Government can deviate from the optimal tax range without harming the licensed market. Hoffstedt previously discussed the proposed tax increase on the Huddle in October.
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