Poll: Will Sweden become an important strategic egaming jurisdiction?
Draft regulation is expected by June, however restrictive framework and high tax rate could make it a less attractive market than some had hoped
The Swedish government is expected to release draft legislation for egaming by June, yet with recent figures from the country’s regulator showing a dip in revenue from online casino and poker the market’s potential remains up for debate.
In January the government pledged to publish a proposed regulatory framework by the end of May this year, though it is yet to confirm which path it will follow in terms of taxation and the number of licences to be made available. Should it create a liberal market, a position argued by Branschforeningen for Onlinspel (BOS) – an online association led by Swedish-listed operators Betsson and Unibet – it could become an important strategic egaming jurisdiction for Europe’s operators.
Earlier this year a report published by PwC estimated Swedish online GGR at around £500m, with around £230m of this coming from unregulated operators. Yet results posted by the regulator last week posted by the Swedish regulator showed that monopoly operator Svenska Spel saw casino income drop 7.2% in the first quarter compared to the same period in 2012, while poker fell some 13.8% from 2012’s Q1 takings.
Operators will hope the government balances its “number one goal” of creating a safe, socially responsible egaming market with ensuring it does not restrict healthy competition by enforcing high taxation and restrictive guidelines.
A tax rate of 10% of GGR has been suggested by BOS, with chairman and Betsson CEO Magnus Silfverberg claimed would double tax income in the market. He also argued that the lower rate would encourage more operators to apply for a licence, and give the government greater control over the industry, which currently sees more than half of GGR go to unlicensed operators.
But do you see Sweden emerging as an attractive, profitable jurisdiction for operators? Or will it take an overly-cautious approach and put operators off from investing there?
You can have your say by answering our poll at the right hand side of the page.