Amid the ongoing debate on the proposed gambling tax increase in Sweden, the country’s gambling regulator Spelinspektionenis staying neutral on the matter. However, the agency noted that the tax hike could have an impact on the regulated market’s channelization rate.
Under the new changes, Sweden’s gambling tax rate will be set at 22% of gross gambling revenue (GGR), up from the existing 18%. Proponents say the tax increase is appropriate as the gambling market has already “stabilized” since its re-regulation in 2019.
With the new measure, the government is aiming to raise an additional SEK540 million (€45 million) in tax revenue. The proposal will be up for deliberation at the Swedish parliament, Riksdag, in the Spring of 2024. If approved, the tax increase will be implemented on July 1 next year.
Spelinspektionen Submits Feedback to Proposed Tax Hike
While maintaining that it holds “no significant opinion” on the proposed tax changes, Spelinspektionen highlighted the recent decline in GGR among licensed operators who are paying gambling tax. Latest figures from the regulator show that Swedish gambling providers (both land-based and online) experienced a 1% drop in revenue to SEK6.7 billion, which could indicate a shrinking tax base.
Submitting its response to the proposed tax hike, Spelinspektionen also stated that the measure could present a challenge to the government’s goal of maintaining a 90% channelization rate for the regulated market.