The Swedish online gaming group, BOS, is resisting the government’s proposal to increase levies on wagering. They contend that rather than improving the situation, this tax hike will only make the gaming market more precarious.

The suggested plan, outlined in a document, proposes raising the gambling duty from 18% to 22% beginning July 1, 2024.

Gustaf Hoffstedt, the leader of BOS, was blunt: “This contradicts everything the government claims it wants to accomplish with its gambling market rules.”

He noted that several entities, including the Swedish Gaming Authority, have demonstrated that increasing taxes will only diminish the legal portion of the market.

“What will transpire instead is that the unregulated and often illicit side of gambling will expand if this tax increase is implemented,” Hoffstedt cautioned.

The Swedish government initially intended to maintain illegal gambling below 10% of the market. However, BOS forecasts that this new tax could propel that figure even higher. They had hoped that 90% of gambling would occur through legitimate avenues.

Nevertheless, BOS states that as of March of this year, that number had already fallen to 77%, and for internet casinos, it was even lower at 72%.

Hofstetter stated: “Research from Copenhagen Economics proposed an ideal tax range for nations, falling between 15% and 20%.

“Rates exceeding 20% result in capital relocation, and as per the established Laffer Curve theory, ultimately yield diminished tax income over time.

“No data indicates that the nation can currently depart from this recommended tax bracket without negatively impacting the regulated market, particularly compared to the period before Sweden implemented new regulations on its gambling sector.”

Hofstetter had previously voiced his perspective on the initial tax policy announcement during an October appearance on the Huddle.