This move comes because the Government believes the gambling market has achieved stability since its re-regulation in 2019. It points to high channelisation rates as a key factor behind the decision.
The announcement, however, has garnered criticism from the Swedish Trade Association for Online Gambling (BOS), with Secretary General, Gustaf Hoffstedt, expressing deep disappointment. Hoffstedt argues that the Government's decision reflects a lack of understanding of the market it seeks to regulate and the precarious position it places the industry in.
Recent data indicates that channelisation in Sweden's gambling market stands at 77%, with certain sectors, such as online casinos, struggling at 72%. These figures stray from the Government's original goal of achieving at least 90% channelisation.
Hoffstedt argues that if the Riksdag approves the proposed tax increase, the industry could revert to the low channelisation rates seen before the 2019 re-regulation.
Hoffstedt called on the Government to reconsider its decision, emphasising that there is still time to withdraw the proposal. He implored the Government to recognise the consequences of this tax increase on an industry that has already faced significant challenges.
The Government's proposal is slated to take effect on 1 July 2024, when they will increase the tax rate from 18 to 22% of the balance for each tax period.
The Government intends to present the proposal to the Riksdag in the spring of 2024 for further consideration.
