BOS sees no reason to introduce Swedish horseracing betting levy
Trade association rails against government proposals and highlights consequences for licensed market
Swedish trade association BOS has opposed government proposals to introduce a levy on all horseracing bets to help fund the industry.
BOS indicated its support for the Swedish Market Inquiry’s recommendation that a levy was unnecessary, insisting there was “no reason” to introduce one.
Proponents of the levy have said it could be based on a percentage of operator turnover, with 5% of every SEK100 mooted as a possible option for all licensed operators.
BOS suggested the proposed levy was unenforceable and would effectively wipe out any potential profits for horseracing betting operators, making the market unsustainable for licensed firms.
“If a levy is introduced and Swedish-licensed gaming companies this could negatively impact channelling into the Swedish licensing system,” BOS wrote.
“The opportunities to collect market fees from gaming companies that do not have a Swedish licence are likely to be small gaming companies thus gain a competitive advantage compared with Swedish-licensed gaming companies in that the former can then offer lower and thus more competitive prices,” the trade association added.
“We agree with the inquiry’s conclusion to reject this proposal. We do this based on both principal as well as practical reasons,” BOS CEO Gustaf Hoffstedt said.
“A principal reason is that you cannot own, and consequently not charge for, information that is open to everyone.
“This includes results that are often used in various types of betting. A practical reason is that the proposed market fee would be as large as the entire gross gaming revenue.
“Everything that remains after the winnings have been paid out to the winners would have to go to cover the levy fee. Few gaming companies would be interested to operate under such conditions,” Hoffstedt added.