Sweden Doubles Initial Projections in Its First Year of Gambling Tax

Up until recently, the state-run Svenska Spel was the only licensed form of gambling in Sweden. 

The country opened its doors to operators from other parts of the world at the start of the year and has since issued 86 licenses. 

While it may be early days for the online gambling industry in Sweden, the profits speak for themselves. 

 Sweden’s 18% Gambling Tax 

Compared to other countries, it may be steep but Sweden’s laws require online casinos to pay 18% in tax, including the Svenska Spel. 

Each new casino license issued is required to pay this tax, but Sweden has received some push back. 

Spelinspektionen is the regulator in Sweden and it has received negative feedback regarding the steep fees that are required from gambling operators. 

In the first 6 months of 2019, a total of SEK1.84 billion (or $190.7 million) has been collected in gambling taxes. In fact, these taxes have met the first full year’s tax projection and put a tidy profit in the government’s pocket. 

 Heavy Fees for Gambling Operators 

One of the largest fees paid by new operators in Sweden is the additional supervision fee of SEK57 million (or $5.90 million). This is over and above the licensing fee of SEK67 million (or $6.94 million) that must be bought. 

The regulator stated that the extra fees are so high as they did not expect the immense influx of applications as they received. 

However, head of communications at  Spelinspektionen, Anders Sims does not think that the fees pose too much of a problem to online casinos. “It is not too burdensome for the gaming companies,” said Sims. “They have the opportunity to follow the rules and pay taxes and still make a good deal.”