The Swedish Gambling Authority has insisted it will closely monitor how a scheduled increase in the gambling tax rate will affect the country’s black market.
Spelinspektionen said while it has “no substantive objections” to increasing the tax rate from 18 per cent to 22 per cent from July next year, it warned of “certain difficulties” in “assessing the potential consequences” of the change.
It said that an increase in the tax rate may impact the number of players playing via legal routes and with licensed operators.
The regulator added that a decline in Swedish gross gaming revenue in the past two quarters – which bucks the trend of the past three years – means there are “already” signs of a “reduced tax base” in the market, which could be added to by an increase in the tax rate.
“Overall, the Swedish Gambling Authority believes that there is a reason to closely monitor the developments in the gambling market,” Spelinspektionen’s statement added.
The regulator pointed out that while Sweden’s gross gaming revenue had grown every quarter between Q3 2020 and Q1 2023, a one per cent decline in GGR in Q2 this year was followed up by a further drop-off in Q3.
The Increase in Gambling Tax Memorandum Proposal, released in October, said that a tax increase should be “well balanced to avoid a significant negative impact on the share of games conducted by companies licensed for gaming in Sweden.”
The proposal is estimated to increase tax revenue by SEK270m (£20.4m) in 2024 and thereafter by SEK540m (£40.9m) thereafter.
The Memorandum added: “An increase from 18 to 22 percent is assessed in this context to be appropriate to strengthen the financing of state activities without causing a significant impact on businesses and the size of the tax base.”
