Swedish operators reject tax hike, warn of risks to regulated market

Swedish operators reject tax hike, warn of risks to regulated market

The Swedish online gambling association, BOS, expressed strong opposition to the government's plan to raise the tax burden on licensed operators. The entity warned that the measure could weaken the regulated market, reduce the channeling to authorized platforms, and compromise the progress made since the sector's reform.

The Government proposes to raise the tax on GGR

The Swedish Executive presented an initiative to increase the tax applied to licensed operators from 18 to 22 percent of the gross gaming revenue (GGR) starting in mid-2024.

According to the government, the regulated market has already reached a level of maturity that would allow it to absorb the increase, while also raising state revenue.

However, the announcement comes in a context where channeling remains below expectations. Publicly discussed data indicates that only around 77 percent of online gambling in Sweden today occurs within the regulated market.

Critics fear that a higher tax will widen the gap with unlicensed operators, who already operate with competitive advantages, and that the economic pressure on regulated operators will reduce their capacity to innovate and strengthen consumer protection measures.

The project remains under analysis while the government gathers new opinions from the sector.

The industry warns about impacts and loss of competitiveness

BOS Secretary General, Gustaf Hoffstedt, expressed his concern, calling the proposal “a self-inflicted harm to the Swedish market.” He argued that increasing the financial burden on authorized companies could weaken the regulatory system and push more players towards offshore platforms.

Hoffstedt emphasized that the debate should focus on consumer safety and improving channeling levels, not on raising taxes.

The industry urged the government to reconsider the measure and explore alternatives that ensure public revenues without risking the sustainability of the regulated market.

For operators, a competitive and stable ecosystem is fundamental to guarantee effective supervision, combat the illegal market, and maintain strong responsible gambling policies.

Tags: Sweden, iGaming Sweden, Sweden betting regulation, online gaming taxes