WTGBET BOS once again advises against Swedish Government's gambling tax rise
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BOS once again advises against Swedish Government's gambling tax rise

Updated:2024-03-25 12:56    Views:65

The Swedish Trade Association for Online Gambling (BOS) has rejected new plans from the Government to raise taxes on gambling.

The Increase in Gambling Tax Memorandum proposes tax hikes on gambling from 18% to 22% from 1 July 2024.

Gustaf Hoffstedt, BOS Secretary General, said: “BOS believes that the proposal for a tax increase is in conflict with all of the Government's stated goals for the gambling market.

“It is connected with the fact that the implementation of a tax increase on gambling will lead to reduced channelisation within the Swedish regulated gambling market; something that is also expressed by several other reference bodies, including the Swedish Gambling Authority.

“In contrast, the unlicensed and not infrequently illegal gambling market in Sweden will gain market share if the proposal to raise the gambling tax is implemented.”

Sweden’s Government had originally set a 10% target for illegal gambling, although BOS expects this to grow in light of the new tax plans.

This would mean that 90% of all gambling would be conducted through legal and regulated operators.

However, BOS claims that in March of this year, this had already fallen to 77% for competitive gambling overall,Play Casino Online and to 72% for online casinos in particular.

Hoffstedt continued: “Copenhagen's Economics report presents an optimal range for the state to stay within, 15-20%.

“A tax rate above 20% means lost channelisation, but also in the long term reduced tax revenue, in accordance with a classic Laffer curve.

“There is no reason to believe that the state can now, compared to the years before the Swedish reregulation of the gambling market, be able to deviate from the presented tax range without damaging the licensed market.”

Hoffstedt appeared on the Huddle back in October after news of the proposed tax launch first broke.