BOS: Improved pipeline could boost Swedish GDP by SEK 10 billion – Online Casino

Sweden’s gambling tax could climb to SEK 1.1 billion and nearly 500 new jobs would be created if restrictions on licensed operators are eased, according to a new report.

The report was commissioned by the operator association Branscheforenigen för Onlinespel (BOS) and written by Dr. Nima Sanandaji. It examines the positive contribution made by the gaming industry to Swedish society and how it can be optimized.

This positive, Dr Sanandaji asserted, was undermined by restrictions on licensed online gambling operators limiting efforts to steer players away from unlicensed gambling options.

Citing official data, the report noted that there were 4,200 permanent positions in licensed gambling businesses across the country, with the sector contributing just under SEK 10 billion (804 .9 million pounds sterling / 940.4 million euros / 995.3 million dollars) to Sweden’s gross domestic product (GDP).

The industry also contributes about SEK 800 million in sponsorship to Swedish sports, and operators pay about SEK 4 billion in taxes each year.

However, these operators are being undermined by the offshore market, which Dr Sanandaji predicts will generate revenues of SEK 21 billion between 2021 and 2025.

By making the regulated market more attractive, there would be a positive impact on Swedish society, the report states. If the pipeline rate is increased from 80% to 90%, this could create 460 new jobs, while industry’s contribution to Swedish GDP would increase by around SEK 1.1 billion.

The key to this would be to incentivize players to play through licensed outlets, allowing them to use bonuses to acquire and retain players, the report explains. Currently, licensees can only offer players one bonus when signing up.

“Sweden has everything to gain from reviewing gambling regulations to loosen some of the restrictions that push most gambling consumers into the unlicensed gambling market,” Dr Sanandaji said.

The Swedish government introduced a number of temporary measures – including a SEK 100 cap on bonuses and a SEK 5,000 deposit cap – during the first Covid-19 lockdown in 2020. These measures have been extended to many times. In January this year, the government released plans to reintroduce some measures, which were dropped later that month.

“The rigid ban on bonuses stands out, [as it] does not offer any benefit to loyal gaming customers,” Dr. Sanandaji explained. “Sweden is paying a high price for this regulation in terms of lost players choosing unlicensed gaming instead.”

Gustaf Hoffstedt, general secretary of BOS, said the report highlighted “untapped opportunities” in the country’s gaming market.

“We hope this report will interest more people in the contribution of the gaming industry in Sweden, as well as the still untapped opportunities that exist for politicians working for the inclusion of the gaming industry in trade policy. of Sweden,” Hoffstedt said.

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