Swedish egaming association calls for 10% tax rate
Swedish online operator association claims that lower tax rate would give government greater control of the country's online gambling market.
A 10% tax on gross gaming revenues (GGR) would allow the Swedish government to almost double taxable revenues in the market, a report published by PwC has claimed.
The report was commissioned by the newly-formed Branschforeningen for Onlinspel (BOS), an online association led by Swedish-listed operators Betsson and Unibet, and chaired by Betsson chief executive Magnus Silfverberg.
Online GGR in the Swedish market is estimated at around SEK4.9bn, but with around SEK2.4bn of this coming from unregulated operators and currently untaxed, meaning that the government could effectively double tax revenues from egaming.
The report presents three scenarios, looking at the potential outcomes of imposing a 10%, 15% and 20% tax on gross gaming revenues, with no restrictions on the number of licences which can be awarded, or the products which companies can offer.
“In each case the state revenue does not massively differ,” Silfverberg explained. “Of course revenues are slightly higher under the 20%, but it is lowest in the current status quo.”
Silfverberg went on to explain that with the lowest rate of tax, there would be a greater number of operators looking to enter a regulated Swedish market, giving the government greater control over the market, allowing them to pursue their “number one goal” of player protection.
However, a spokesperson for Svenska Spel doubted whether the report would have any bearing on the government’s decision-making process, noting that a similar report submitted in several years ago by the Stockholm School of Economics had been largely ignored.
“The aim for gambling legislation is not to treat the market in the same way as any other industry, as the goal is not financial gain, but social responsibility,” the spokesperson explained.
The BOS currently counts Bonnier, Betfair and PAF as members alongside Betsson and Unibet, but is set to add up to 10 further members following a meeting to be held early in March, with Microgaming understood to be looking to join.
Sweden has begun to move towards regulating its online gambling market, with the country’s Prime Minister Fredrik Reinfeldt and minister for financial markets with responsibility for gambling issues Peter Norman signing a pledge to submit proposals for legislation in January this year.
This move was prompted by a two-year investigation by the Swedish National Audit Office (Riksrevisionen) into the country’s gambling market, concluded that stronger measures could be taken to improve standards of player protection and to combat gambling addiction.