The Swedish iGaming sector is expressing strong disapproval (once more!) regarding the government’s suggested tax increase. They contend that raising taxes from 18% to 22% will solely advantage illicit gambling platforms, leading players away from authorized providers.
The industry organization BOS emphasizes that this contradicts the government’s stated objective of fostering a more secure gambling environment. They assert – a view seemingly shared by the Swedish Gambling Authority – that this action will only diminish the regulated market and steer more individuals towards unregulated, potentially risky websites.
To support their claims, BOS highlights that a mere 77% of the gambling market in Sweden was licensed and lawful as of March. For internet-based casinos in particular, that figure plummets to a concerning 72%. This paints a rather grim picture of the potential consequences if the government proceeds with these tax hikes.
Hoffstet cited a Copenhagen Economics analysis that indicated an optimal taxation level for nations should fall within the 15% to 20% range. Exceeding this threshold, he argued, would encourage illicit activities and, as per the Laffer Curve principle, ultimately diminish tax income over time. He sees no justification for Sweden to deviate from this, particularly considering its historical attempts to regulate the gaming sector. These remarks were made by Hoffstet on the Huddle program in October, soon after the proposed tax plan was announced.