Spelinspektionen, the Swedish gambling authority, has stated that it has ‘no substantive views’ on the proposed gambling tax increase in Sweden.
However, the authority noted it will ‘carefully follow developments’ and monitor what ‘consequences the proposed change may actually have’ as it agrees with the Swedish government that such an increase could affect the channelling rate.
Back in September, Regeringskansliet announced plans within its 2024 budget to increase the tax on gambling GGR as it believes the country’s market is now stable following legalisation in 2019.
From July 1, 2024, the government plans to increase Sweden’s gambling tax from 18 per cent to 22 per cent, raising an additional SEK 540m (£39.4m) per year, and is expected to be put forth before the Riksdag for approval in the spring of next year.
Regeringskansliet hopes that by increasing the gambling tax, a channelisation target of 90 per cent can be achieved with little negative impact on the legal market.
In response to the proposed changes, Spelinspektionen said in a statement: “The Swedish Gaming Authority has no substantive views on the proposals in the memorandum. However, the Swedish Gaming Authority believes that there are certain difficulties in getting an overview of what consequences the proposed change may actually have.
“Similar to what appears in the memorandum, the Gambling Inspectorate sees that an increase in the tax on gambling may affect, among other things, the channelling rate.”
Within their statement, Spelinspektionen mentioned how growth was seen within the Swedish gambling market between Q3 2020 and Q1 2023, but then turnover fell by one per cent in Q2 2023 in comparison to the previous year, a decrease which continued in Q3 2023.
“The decline was particularly evident in the category of licence holders who pay gambling tax,” noted the gambling authority.
“Thus, there are already some changes in the gaming market that could lead to a reduced tax base, although it is uncertain whether the decline is temporary or more permanent.”
Spelinspektionen added that there is reason to ‘carefully follow developments’ within the country’s gambling market as the scheduled implementation date of the gambling tax increase draws closer.
While the gambling authority doesn’t have any substantive views on the proposed gambling tax increase, the Swedish Trade Association for Online Gambling – Branschföreningen för Onlinespel – has argued that the changes don’t take into account the current state of the market and the future it is heading toward.
