The Swedish Government issues proposal for a new tax on gambling and other regulations of the gambling market in Sweden

Proposal for a new tax and regulations of gambling

We have in a previous TaxNews informed about a governmental committee's proposal on a new set of gambling regulations in Sweden. The Swedish Government has now (December 21, 2017) published its first view on how the regulations should be formulated in a referral to the Swedish Council on Legislation (Lagrådet). Below is a brief summary of what the Government has declared.

The new gambling rules should be designed as a licensing system, whereby all those who provide games on the Swedish gambling market must be licensed. Unlicensed providers going forward will not have the right to provide games. The law will apply to all gambling in Sweden, including online.

The Government also proposes a new gambling tax on licensed games of 18%. Games for public/social purposes ("allmännyttiga ändamål") shall continue to be tax exempt.

The proposal referred to the Council on Legislation also proposes tightening the penalties for unlawful gambling activities and promoting unlawful gambling, and that a new criminal classification, gambling fraud, be introduced to address match fixing.

The new regulation is proposed to enter into force as per January 1, 2019. Applications for licenses may be submitted from July 2018.

Welcome to contact us if you have any questions or concerns about what the proposal may mean for your business or the continued legislative process.