Increased gambling tax in Sweden comes into effect

Sweden’s increased excise tax on gambling comes into effect from today, Monday, July 1.

The new tax, up to 22 per cent from 18 per cent, covers all verticals and received mixed reaction from across the industry in Sweden before being approved by the government in May.

The gambling regulator, Spelinspektionen, said while it had “no substantive objections” to increasing the tax rate, it warned of “certain difficulties” in “assessing the potential consequences” of the change. It pointed to the potential effect on the channelisation rate of players towards legal routes and the impact on the illegal market.

Indeed, trade association BOS’ secretary general, Gustaf Hoffstedt, said the unlicensed and illegal gaming market in Sweden would “gain market share” as a result of the new tax regime.

Swedish operator ATG, whose main focus is on racetracks and horseracing, wanted tax on betting to stay the same and instead proposed that the tax on commercial online gambling should rise on its own to 26 per cent.

ATG CEO Hans Lord Skarplöth said the online casino market is “considerably larger” than the betting market and is also the “fastest-growing part of the market.”

However, the government’s memorandum said: “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.”

The proposal is estimated to increase tax revenue by SEK270m (£20.4m) in 2024 and thereafter by SEK540m (£40.9m) thereafter.

The plans were first announced in September 2023 with the government claiming that, following re-regulation in 2019, the Swedish market had settled.