According to iGB gambling news, Sweden proposes gambling tax increase. Sweden’s government (Regeringen) has announced proposals to increase the gambling tax rate in the country from 18% to 22% of gross gaming revenue (GGR).
The Swedish gambling market received new regulation in 2019. Today, the Swedish government is satisfied with the results of legalization and considers the channelization to be high, and the market is mature enough to talk about increasing taxes.
Gena Novikov, Head of Consulting at 4H, comments on the situation:
"At 4H Agency, we often deal with regulatory changes in various countries. Unfortunately, in many cases, such changes often have a negative impact on operators, ultimately failing to yield the expected results for the government.
The example of Sweden has pleasantly surprised us. Unlike some jurisdictions that seek immediate comprehensive reforms, leading to an increase in illegal operations, the Swedish government has chosen an evolutionary approach:
Why do we believe this approach is the best, despite it taking quite a long time?
For operators, any new legal expansion entails, first of all, significant costs across various areas, including marketing, localization, licensing, and taxes, etc.
Sweden's approach reflects an understanding of operator economics and allows operators to enter the market first, gaining stability before facing increased regulatory burdens. And only then, based on analytical data about channelization, quantitative and qualitative indicators of the market, the government decides to change the regulatory landscape in order to strike a balance between the interests of the state, players, and operators.
We are always pleased when governments endorse a synergistic coexistence approach. We will closely monitor developments in the Swedish market and keep our audience informed".
The Swedish gambling market received new regulation in 2019. Today, the Swedish government is satisfied with the results of legalization and considers the channelization to be high, and the market is mature enough to talk about increasing taxes.
Gena Novikov, Head of Consulting at 4H, comments on the situation:
"At 4H Agency, we often deal with regulatory changes in various countries. Unfortunately, in many cases, such changes often have a negative impact on operators, ultimately failing to yield the expected results for the government.
The example of Sweden has pleasantly surprised us. Unlike some jurisdictions that seek immediate comprehensive reforms, leading to an increase in illegal operations, the Swedish government has chosen an evolutionary approach:
- Established the “rules of the game” for operators in 2019;
- Implemented measures to combat illegal operations in 2023;
- And only now the government is thinking about increasing the tax from July 2024.
Why do we believe this approach is the best, despite it taking quite a long time?
For operators, any new legal expansion entails, first of all, significant costs across various areas, including marketing, localization, licensing, and taxes, etc.
Sweden's approach reflects an understanding of operator economics and allows operators to enter the market first, gaining stability before facing increased regulatory burdens. And only then, based on analytical data about channelization, quantitative and qualitative indicators of the market, the government decides to change the regulatory landscape in order to strike a balance between the interests of the state, players, and operators.
We are always pleased when governments endorse a synergistic coexistence approach. We will closely monitor developments in the Swedish market and keep our audience informed".
