Sweden’s gambling industry is facing an increase in taxes as the government aims to raise additional funds for its programmes and initiatives. The proposed rise in gross gaming revenue (GGR) tax is laid out in the 2024 budget, which if approved, could take effect from July 1 next year.
GGR Tax to Rise to 22%
Under the new proposal, Sweden’s gambling tax will increase to 22% from the existing 18% which has been in place since the re-regulation of the country’s gambling market in 2019. Announcing the new changes, the Swedish government said the market has since stabilized, with channelization improving significantly over the last four years.
The government considers the tax increase as “suitable”, saying it would help reinforce the financing of government activities and hit a channelization target of 90% without causing a massive impact on the business operations of licensed gambling firms in the country.
The government is aiming to raise an extra SEK 540m (£39.4m) per year with the tax increase.
iGaming Trade Body Criticized Planned Tax Hike
The trade body representing Swedish online gambling operators, Branschföreningen för Onlinespel (BOS), has criticized the plan, saying the market is currently in a vulnerable position, with channelization rates declining over time.
According to BOS General Secretary Gustaf Hoffstedt, the proposed GGR tax hike will result in a further decrease in channelization rates, with the market possibly reverting to where it was before the re-regulation was introduced.
