Swedish MP calls for review to reduce GGR tax to combat black market
Carl Nordblom submits a flurry of parliamentary motions as he warns players will seek illegal operators after Sweden raised the GGR tax rate from 18% to 22% on 1 July
Swedish MP Carl Nordblom has called for a reduction in the gambling tax to counter the rise in the number of players using black-market operators, a little over three months after a much-maligned tax hike was introduced.
Previous concerns had been raised over the four-percentage-point increase in GGR tax for operators from 18% to 22% that came into effect on 1 July 2024, pointing out this could lead to more players engaging with illegal operators.
A member of the Swedish Moderate Party, Nordblom’s motion comes shortly after the Swedish Gambling Authority (SGA) claimed the channelisation rate in the market sat at 86% in 2023.
Despite this, the MP, who has held his City of Stockholm seat since 2022, warned that players are turning to illegal operators following the July tax hike and that there should be a review into the possibility of lowering the GGR tax rate.
In his motion, that has been filed with the Swedish parliament, Nordblom said: “The majority of players have warned that the degree of channelisation, the amount of gambling that takes place in the Swedish licensed gambling market, is decreasing.
“The consequences of this are that Swedish players turn to foreign gambling companies, without a Swedish gambling licence, and are then not protected by Swedish consumer regulations and the Swedish duty of care in gambling.
“The level of the Swedish gambling tax’s significance for the channelling rate should be investigated and the possibility of lowering the gambling tax should be reviewed in order to try to increase the channelling rate in the Swedish licensed gambling market and attract back players from foreign gambling companies without a Swedish gambling licence.”
Nordblom’s motion was tied to two other filings in parliament that were submitted yesterday, 2 October.
In one of those motions, he called for a review of “quick loans” on the grounds they could lead to increased gambling-related harm.
The MPs motion said a self-exclusion style register for loans, similar to that of the existing Spelpaus model for gambling, could be introduced to combat the issue.
The second motioned concerned a ban on bank transactions linked to unlicensed operators in Sweden.
The increase in GGR tax received plenty of backlash before and after its implementation on 1 July 2024.
Several prominent figures in Swedish horseracing said the tax raise was a “hard blow” to an industry that was already struggling.
This was after horseracing operator ATG conducted a study which showed the channelisation rate ranged from 57% to 72% for online casino, and between 77% and 87% for sports betting.
Prior to the tax raise, EGR spoke to a number of operators earlier this year that were concerned with the then-proposed hike, including Kindred Group, Betsson and ComeOn Group.