Tax on Online Gambling Should be Less Than 20% in Sweden

November 4, 2016 Taxation in Sweeden

Tax on online gambling in SwedenSTOCKHOLM – Sweden’s tax on online gambling should be set to no more than 20 percent in order to ensure that it results in high tax revenues without pushing operators away from legitimate licensing.

A recent report by the think-tank Copenhagen Economics has sought to assess the effect of tax rates on the tax revenues derived from online gambling licensing in Sweden.

The think-tank was tasked with determining the rate of tax on gross gambling revenues which would simultaneously maximize the revenue gathered by the government while ensuring that the highest proportion of gambling operators are licensed.

It was determined that the optimal rate of tax on gambling revenues is between 15 percent and 20 percent.

The think-tank claimed that it is unlikely that tax rates of less than 15 percent would lead to increased licensing rates.

Further, it was shown that licensing rates will drop as the rate of tax on gross gambling revenues is raised above 20 percent, indicating that setting the rate at more than 20 percent will not be an efficient option.