Sweden’s Branschföreningen för Onlinespel (BOS), an association representing online gambling, has voiced strong concerns over the government’s decision to increase gambling taxes. Gustaf Hoffstedt, BOS’s General Secretary, criticized the move, labeling it a boon for the unregulated market.
The Swedish government recently proposed increasing gambling taxes from 18% to 22%, effective July 1, 2024. BOS, known for its criticisms of the government’s handling of the gambling market, finds this timing particularly unfavorable. The association argues that this tax hike could drive players towards black market operators.
Spelinspektionen, the Swedish gambling regulator, hasn’t opposed the tax rise but acknowledged potential negative outcomes. In contrast, BOS openly disapproves, calling the Ministry of Finance’s decision harmful to the industry.
In a press release, Hoffstedt emphasized BOS’s rejection of the proposal, stressing its ill timing. He pointed out the shift of players from the licensed to the unlicensed gambling market saying:
“The government can hardly time its proposal to raise the gambling tax to a worse time. We are in a situation where fewer and fewer players choose to play on the safe licensed market, and more and more on the unregulated, unlicensed gambling market.”
Hoffstedt concluded by remarking that the government’s proposal serves as an unintended “Christmas gift” to the unregulated gambling sector, aiding their growth over lawful entities.
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