Sweden’s online gambling association, Branschföreningen för Onlinespel (BOS) is not happy with the government’s plan to increase the gambling tax. According to its general secretary, Gustaf Hoffstedt, this move would be a huge Christmas present to the black market.
For reference, Sweden just proposed to raise its gambling tax from 18% to 22%. The new tax rate would be applied from July 1, 2024, but is already attracting the industry’s hostility. BOS, which has previously critiqued the government of not understanding the market and its vulnerabilities, expressed its disagreement with the measure.
According to BOS, the new measure will undermine the legal market at a very bad time as more and more players are now playing with black market companies.
Spelinspektionen, Sweden’s gambling regulator, previously said that it doesn’t have firm objections to the measure but highlighted possible repercussions. BOS, on the other hand, scrutinized the Ministry of Finance’s decision, saying that it was counterproductive.
The Ministry of Finance Is Giving a “Christmas Gift” to the Black Market
In an official press release, Hoffstedt said that his team rejected the proposal and slammed the Ministry’s decision.
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.
Gustaf Hoffstedt, general secretary, BOS
Hoffstedt added that the industry would only benefit the unlicensed market and further undermine the legal operators. He concluded that the proposal was “the best Christmas present” the Ministry of Finance could have given to the black market.
That the government proposes to raise the tax for licensed gambling is the best Christmas present you can think of – to the unregulated and unlicensed gambling market.
Gustaf Hoffstedt, general secretary, BOS
Consumers Misunderstand the Market Too
In other news, BOS recently released a new study, highlighting the public’s misconceptions about the industry. Its findings showed that many players believe problem gambling to be a much more prevalent issue than it actually is. In addition, consumers across the country believe that operators keep most of the players’ money, which is also incorrect.
Hoffstedt highlighted the importance of correcting these misconceptions since they are the reason the public has been okay with tougher gambling regulations. This, he says, is hurting the industry and threatening its health.