Sweden Raises gambling excise tax

Sweden Raises gambling excise tax

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Sweden Raises gambling excise tax

The higher excise tax on gambling in Sweden is going into force as of today, Monday, July 1.

The new tax, which increases the rate from 18% to 22% for all verticals, was met with opposition from the Swedish industry prior to the government’s approval in May.

While expressing “no substantive objections” to the tax rate increase, the gambling regulator Spelinspektionen cautioned that there would be “certain difficulties” in “assessing the potential consequences” of the adjustment. It made reference to the possible influence on the illegal market as well as the rate at which participants are channeling their attention into legal methods.

In fact, Gustaf Hoffstedt, secretary general of trade organization BOS, predicted that the new tax system will cause the unregulated and illegal gambling business in Sweden to “gain market share.”

The Swedish operator ATG, which mostly operates horseracing and racetracks, suggested raising the tax on commercial online gambling to 26% instead of maintaining the current tax on betting. According to ATG CEO Hans Lord Skarplöth, the market for online casinos is far larger than that for sports betting and is expanding at the fastest rate within the industry.

The government’s memorandum stated:

“An increase from 18 to 22 per cent 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.”

It is projected that the proposal will raise tax revenue by £20.4 million in 2024 and then by £40.9 million in subsequent years. The government claimed that the Swedish market had stabilized after re-regulation in 2019 when the plans were originally introduced in September 2023.

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