Gambling Tax Income Boosts The Swedish Economy

Swedish gambling licenses are notoriously strict – however this is for very good reason, and the state has been careful to make sure that all applicants and licensees follow the rules carefully. One of the rules? All gaming companies registered with the Swedish government for the purposes of offering online gambling must pay tax on their income in Sweden. But how has this benefitted the Swedish economy since then?

This tax income is critical in ensuring a steady revenue stream for the country – as in some US states they use tax revenue to better fill the treasury, or to create funds for social projects. Over the course of 2019 and up until 2020, gaming companies had paid up a total of SEK 923 million – a huge number given the amount of time the law has been in action.

However, actual numbers may be even higher than this – with numbers as high as SEK 1.8 billion being touted by professionals in the regulatory body. This is twice as much as the initial estimates – and we can only assume that this will increase further as time goes on, through a combined income of taxes, application fees, renewal fees, and other administration monies to be paid to the Swedish government.

According to Norskespilleautomater, Swedish regulations have had a huge impact on licensees in the country. Although online gambling usage has increased throughout 2020, we’ve seen that operators are reporting a drop in income from players. This is most likely due to the new deposit limit laws and possibly on bonus caps not enticing players so much.

However, as changes to regulations are rolled out slowly across Europe – notably Germany’s upcoming gambling laws, Portugal’s laws against bonuses, and various quickly-implemented anti-gambling laws put into place over the course of the pandemic in Europe – we can only hope that Sweden’s strict-yet-flexible approach helps more operators function in the legal market. This makes gambling safer, more fun, and ultimately more profitable for the Swedish government as time goes on.

SOURCE: Norskespilleautomater.com