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BOS rejects the government’s proposal to raise the gambling tax

Published

1 year ago

December 8, 2023

Reading Time: 8 minutes

The Swedish Trade Association for Online Gambling (BOS) today submits its advisory statement to the Ministry of Finance on the memorandum “Increased gambling tax”.

The memorandum proposes an increase in gambling tax from 18% to 22%, to apply from 1 July 2024. BOS rejects the proposal.

– The government can hardly time its proposal to raise the gambling tax to a worse time. We are in a situation where fewer and fewer players choose to play on the safe licensed market, and more and more on the unregulated, unlicensed gambling market. That the government proposes to raise the tax for licensed gambling is the best Christmas present you can think of – to the unregulated and unlicensed gambling market, says Gustaf Hoffstedt.

The memorandum in English can be found below:

Referral statement Fi2023/02665, Increased gambling tax

About BOS
The Swedish Trade Association for Online Gambling (BOS) is here issuing its opinion on
the memorandum “Increased gambling tax”, in which it is proposed that the excise tax
on gambling be increased from 18 to 22 percent as of July 1, 2024.
BOS represents twenty gambling companies that operate on the Swedish gambling
market.1 This makes us the largest trade association in Sweden within our industry. All
members have a license/permit issued by Spelinspektionen.

BOS recommendation

BOS rejects the proposal to raise the gambling tax.
Our motives for the rejection
The goal of the gambling market, as described by the government, “is a healthy and
safe gambling market under public control”. In addition, according to the government,
revenues for the common good must be protected, the negative consequences of
gambling must be reduced, gambling for money must be covered by strong consumer
protection and cannot be misused for criminal activities.
BOS believes that the proposal for a tax increase is in conflict with all of the government’s stated goals for the gambling market. It is connected with the fact that the implementation of a tax increase on gambling will lead to a reduced channelization to the
Swedish regulated gambling market, something that is also expressed by several other
reference bodies, including the Swedish Gambling Authority.

In contrast, the un-licensed and not infrequently illegal gambling market in Sweden will gain market share
if the proposal to raise the gambling tax is implemented.

It is connected with the fact that a tax increase on licensed gambling further
strengthens the competitiveness of unlicensed gambling in Sweden, which
correspondingly increases in attractiveness when Swedish gambling consumers have
to make decisions about where their gambling will take place. A product subject to
high tax is less attractive than a comparable product subject to low or no tax.
Channelization
The concept of channelization refers to what proportion of Swedes’ gambling takes
place on the licensed market designated by the state, and what proportion takes place
on the unlicensed market in Sweden. Ideally, all gambling should take place on the
licensed market, but in practice this is impossible to achieve, especially when it comes
to online gambling, which by its very nature is cross-border. Sweden’s unofficial
channelization target has therefore been set at 90 percent. In other words, it is
acceptable (but not desirable) with a leakage to the unlicensed gambling market of no
more than 10 percent. If the leakage becomes greater than that, the goals of the
gambling policy are considered to be unachievable.
Unfortunately, Sweden’s channelization target must now be described as “unofficial”,
with reference to the fact that the government seems to have distanced itself from the
target in recent years. What was initially a clearly defined goal from both the government and the Riksdag, at least in the political debate, has in recent years rather been referred to as an expectation, assessment or forecast.
To the extent that a government and Riksdag decision is needed to establish Sweden’s
90 percent target, we strongly recommend that the government take this initiative,
and thus not distance itself from this gambling policy goal by calling it something other
than a goal or objective (for example assessment). It is in the government’s own
interest that there is a channelization goal and any way to distance oneself from this
harms the government and the legitimacy of the licensing system, and what is worse
harms Sweden’s gambling consumers.
The reason why the government should under no circumstances undermine the goal of
at least 90 percent channelization is that a high ditto is a basic prerequisite for all other
goals of gambling policy. A high channelization goal is a goal to reach all other goals.
These other goals can be summarized as:
– That consumer protection is strong
– That unhealthy gambling is kept to the lowest possible level
– That crime is pushed back
– That the state receives good tax revenue from gambling
– That the licensed gambling companies have good profitability and good conditions
– That the licensing system has high legitimacy
The government states as a motive for raising the tax that “[t]he current tax rate of 18
percent has applied since the Swedish gambling market was reregulated in 2019. The
gambling market has since stabilized, and channelization has increased significantly.”
It is a claim and a description of reality that we dare to say that the government is
quite alone. In the memorandum, the government presents no more recent figures
than those presented by the Swedish Agency for Public Management (Swe: Statskontoret), which originate from 2021, in a report on the gambling market.
It is unfortunate that the state has not produced more recent data than this, and it is
unfortunate that the government has not taken on board new data presented by
actors other than the state. BOS was able to show half a year ago that the
channelization in March 2023 was 77 percent for all competitive gambling (that is, all
gambling not protected by monopoly).
It is a channelization that testifies that the Swedish licensing market is in a very serious situation.
The BOS report also broke down the competitive gambling market into its various
components, such as sports betting and online casino. The gambling vertical online
casino, along with online poker, showed the very weakest channelization at 72 percent. That in such a situation there is no room for measures that further damage
channelization – which a tax increase on gambling does – should be obvious.
In addition to BOS’s channelization report, which was carried out by opinion institute
SKOP, the gambling company ATG has had the channelization measured using a
different methodology and presented it in a report. ATG’s measurement mirrors the
BOS report in terms of channelization in general in the gambling market (only 1
percentage point separates the two measurements). On the other hand, the ATG measurement shows an even worse position for the gambling vertical online casino.

Considering ATG’s channelization report, where channelization has fallen dramatically
since the Swedish re-regulation in 2019, it is difficult to even know how to relate to the
government’s claim that “[the] gambling market has since stabilized, and
channelization has increased significantly.” In a later report from ATG, which extends
to Q3 2023, channelization has further fallen to 70 percent channelization for the overall license market and 59 percent channelization for online casino.7
In addition to the above quote from the government testifying that the government
simply lacks a basis for its claim, it demonstrates another, general, shortcoming in the
government’s memorandum: the lack of data, basis, preparation, and analysis.
Examples of the absence of analysis concern the proposal’s impact on the media and
the sports movement. Both of these social actors are major recipients of money from
the gambling industry. A cost increase for the licensed gambling industry of SEK 0.5
billion annually (the increased tax revenue estimated by the government) has to come
from somewhere, and this will by all accounts happen at least in part through reduced
advertising in traditional media and reduced sports sponsorship. The government has
nothing to say about how the media and the sports movement are affected by the government’s proposal. There are no impact analyzes in the government’s memorandum on this.
Through advertisements in, for example, the daily press and sponsorship of sports
teams, awareness of the brands of the licensed betting companies is increased. Such
marketing and sponsorship thus promote the Swedish gambling market, in that
licensed gambling companies are top of mind when the gambling consumer chooses
an operator for its gambling. In addition, of course, the money from the gambling
industry is of great use in the daily recruitment of both sports associations and newsrooms, for their respective important tasks in our democratic society.
The government’s memorandum is not only incomplete in that it does not highlight
and analyze the consequences for important social actors. In addition, the small
approach to analysis that is actually presented in the memorandum seems to be
poorly executed. The government calculates the expected increased tax revenue at
SEK 539 million. There is no calculation for increased costs for the expected increased
gambling addiction, as a consequence of players migrating to unlicensed gambling, in
the analysis. In addition, there is a complete lack of calculations on the extent of lost
tax revenue due to the fact that the tax increase results in reduced channelization, as
well as in general reduced gambling on the license market because the price of
gambling products is raised.
With regard to price sensitivity (price elasticity), the figure -0.5 is used in the memo –
that is, not price sensitive – which is information taken from the inquiry “A reregulated
gambling market”. The information in the inquiry in turn refers to an external report
from 2014 from Great Britain.8 However, the UK document indicates a higher price
elasticity for certain gambling products, including online casino with a figure of -1.5
(high price sensitivity), but this fact – that gambling decreases when the price of
certain gambling products is increased – is completely omitted from the government’s
memorandum. The government’s estimated increase in tax revenues of just over SEK
0.5 billion annually therefore appears to be pure wishful thinking based on incorrect
assumptions.

Optimal tax rate

On behalf of BOS, in 2016 the consulting firm Copenhagen Economics had an optimal
tax level calculated for Swedish conditions, ahead of the Swedish re-regulation in
2019.9 As far as we know, it is the most detailed investigation that has been done based on Swedish conditions, and the report had a noticeable impact on the government’s and the Riksdag’s decision to set the gambling tax at 18 percent gross gaming
revenue.
Copenhagen’s Economics report presents an optimal range for the state to stay within,
15-20 percent. A tax rate above 20 percent means lost channelization, but also in the
long term reduced tax revenue, in accordance with a classic Laffer curve. There is no
reason to believe that the state can now, compared to the years before the Swedish
reregulation of the gambling market, be able to deviate from the presented tax range
without damaging the license market. On the contrary, today’s critically low
channelization bears witness that the tax in this sensitive situation should under no
circumstances be increased. Instead, the government and the Riksdag should urgently
devote themselves to reforms that strengthen channelization.

Reforms that strengthen channelization

In this context, BOS would like to conclude by raising a finger of warning for the superstition we see when governments – the current one as well as the previous one – propose new repressive measures on the gambling market. Repressive measures aim to
make it difficult for and exclude unlicensed gambling companies from the Swedish
gambling market. Examples of such measures are so-called B2B permits, payment
blocks and bans on promoting unlicensed operators.
We are generally positive about such measures, and we see their complementary task
as absolutely crucial to succeed in maintaining a high channelization. Complementary
in the sense of reinforcing a gambling license market that is fundamentally perceived
as attractive by the player collective. We object, however, to the fact that governments seem to live in the delusion that the attractiveness of the gambling license
market can be worsened (for example, by raising the gambling tax) without this
worsening the channelization, as long as the deterioration is met with repressive
measures to shut out unlicensed gambling. All experience, from Sweden and a number
of jurisdictions where our members operate, shows that this is an incorrect
assumption. In addition, governments tend to mortgage strengthened channelization
through intensified repression already in advance, not infrequently before the
repressive measures have even been put into effect.
Repressive measures strengthen and promote the licensed gambling market when this
is fundamentally perceived as attractive by the player collective. It is the customers
who decide whether the gambling should take place on the licensed market or not. No
countermeasures in the world, at least in the democracies of the Western world, can
stop the outflow of gambling consumers if the consumers do not consider that the
gambling offer they are given on the license market is sufficiently attractive.

Latest News

India Levels Up: Emerging as a Global Gaming Powerhouse in 2024

Published

1 day ago

December 20, 2024

George Miller

Reading Time: 4 minutes

The Indian gaming industry is breaking boundaries, redefining innovation, and expanding its footprint globally with Indian gaming companies witnessing an exponential growth. The industry is estimated to reach INR 33,243 crore by FY28, showing a 15% CAGR. From a nascent market to now being the world’s fastest-growing gaming hub, India has positioned itself as a vital contributor to the global gaming industry which is projected to surpass $200 billion by 2025.

This explosive growth is fuelled by Indian gaming developers and investment companies that are scaling up studios and pushing the boundaries of creativity and technology. Companies like WinZO are enabling localized gaming experiences for international markets. In a groundbreaking move to elevate India’s position in the global gaming industry, the Department for Promotion of Industry and Internal Trade (DPIIT) has recently signed a Memorandum of Understanding (MoU) with WinZO, India’s largest social gaming and interactive entertainment platform. This partnership marks a significant step towards establishing India as a global leader in interactive entertainment, aligning with Prime Minister Narendra Modi’s vision of an Atmanirbhar Bharat (self-reliant India) in gaming and technology.

Aligning with the robust growth trajectory towards the global arena, a homegrown giant and India’s only listed gaming and esports company, Nazara Technologies has established a strong global presence through strategic acquisitions and partnerships. Cutting-edge developers like Felicity Games, and investment powerhouses like Jetapult are also driving the transformation, making India a force to be reckoned with.

Nitish Mittersain – Jt. MD & CEO – Nazara Technologies looked back at 2024 and stated, “As 2024 comes to a close, India’s gaming industry has proven its resilience and potential, emerging as one of the fastest-growing markets globally. What excites me most is the growing alignment between innovation and accessibility—be it through mobile gaming, localized content, or the increasing reach of esports. In 2025, I see India making significant strides toward becoming a global gaming powerhouse, with several key trends driving this transformation.

Firstly, the widespread adoption of AI and immersive technologies like AR/VR will not just elevate the quality of gaming experiences but also create new opportunities in areas like education, fitness, and community building. Secondly, as regulatory clarity improves, particularly around real-money gaming, the industry will see increased investor confidence and a more robust ecosystem. Finally, the emergence of cross-sector partnerships between gaming, entertainment, and e-commerce will redefine monetization models, creating sustainable growth for developers and platforms alike.

As we look ahead, our focus as an industry should be on nurturing talent, fostering innovation, and ensuring inclusivity in gaming to truly unlock India’s potential on the global stage. The journey has only just begun, and the best is yet to come.”

Jetapult, a strategic investment company, is at the forefront of this revolution. By employing an “Invest & Operate” model, Jetapult aims to help scale gaming studios across emerging markets and was the first international company to make an investment worth $4.5m in the Saudi Arabian gaming studio space, in 2024.

“Reflecting on 2024, one thing is clear: the future of gaming will be defined not by geography but by exceptional talent paired with the right strategic support. At Jetapult, we’re actively partnering with studios, not just deploying capital but helping them scale globally through hands-on collaboration.

Our $4.5M investment in Saudi Arabia’s vibrant gaming ecosystem highlights our commitment to the ‘Invest & Operate’ model, providing end-to-end support across development and publishing. As the gaming industry nears $200 billion, success requires more than funding—it demands expertise, infrastructure, and global access. With our deep understanding of the inherent challenges in game development and our platformized approach, we’re helping studios scale sustainability and compete on the world stage,” said Sharan Tulsiani Co-Founder & CEO Jetapult.

Indian developers are also making waves with their innovative creations. Felicity Games, founded in 2023 known for its immersive experiences and unique storytelling, the company has launched over 10 games in its first year, attracting more than a million users across 14 countries. Anurag Choudhary – Founder & CEO – Felicity games said, “The Indian gaming industry has undergone a transformative journey, emerging as a global force driven by innovation, talent, and a rapidly expanding audience. At Felicity Games, we’re proud to be part of this revolution. In just one year, our focus on building hybrid casual games that combine global appeal with immersive gameplay has enabled us to launch over 10 titles and engage over a million players across 14 countries. This rapid growth is a testament to India’s ability to create world-class gaming experiences. As we step into 2025, we see immense potential for Indian developers to set new benchmarks, pushing boundaries in creativity and technology, and establishing India as a powerhouse in the global gaming ecosystem.”

The backbone of this growth is India’s talent pool, with over 450,000 professionals skilled in game design, programming, and animation (source: NASSCOM). Gaming studios are thriving in metropolitan hubs like Bengaluru, Mumbai, and Hyderabad, attracting international attention. India’s low production costs, paired with high-quality output, have further made it a preferred destination for global gaming giants.

Investments in the Indian gaming ecosystem have skyrocketed, with $2 billion poured into the industry in 2023 alone, a 55% increase from the previous year (source: Venture Intelligence). This financial influx is fostering a vibrant ecosystem of startups, mid-size studios, and large-scale developers. The convergence of talent, technology, and capital is setting India on a trajectory to become one of the top five gaming markets in the world. As developers and investors continue to join forces, India is not just catching up—it is redefining the rules of the game.

The post India Levels Up: Emerging as a Global Gaming Powerhouse in 2024 appeared first on European Gaming Industry News.

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Nazara Publishing Announces Android Beta Release Date for FAU-G: Domination

Published

1 day ago

December 20, 2024

George Miller

Reading Time: 2 minutes

Nazara Publishing, the publishing arm of Nazara Technologies has announced that the Android beta for its upcoming Made-in-India military shooter, Fearless and United Guards (FAU-G): Domination will be available from December 22, 2024.

Developed by Mumbai based Dot9 Games, the first-person shooter game recently wrapped up in-person playtests with game design college students at Ecole Intuit and KJ Somaiya.

Players participating in the beta will have the chance to experience the game’s full suite of maps, modes, weapons, and playable characters ahead of its official launch. This version of FAU-G: Domination will include all core shooter gameplay elements, alongside new features refined through community feedback from earlier playtests. Updates include map optimizations, sound enhancements, weapon balancing, and more.

How to Play the FAU-G: Domination Beta:

1. Sign up for the waitlist by completing the form

2. Check your email for the beta access link.

Participants in the beta will receive one-of-a-kind exclusive cosmetic items to cement their status in shaping FAU-G: Domination. These items will not be available post-launch. Additionally, a select number of lucky players will win unique, limited-edition FAU-G: Domination merchandise.

Depending on demand, access to the game may be delayed. Players can stay updated via the official Discord channel and social media handles of Dot9 Games on Instagram and Twitter.

A week ago, Dot9 Games and Nazara Publishing held its latest playtest enroute to the FAU-G: Domination release date at Ecole Intuit and KJ Somaiya. The audience consisted of the next-generation of Indian game developers and creators. Here’s what they thought of the game:

Nearly 80% of players highlighted the Indian environments and themes in-game as standout features.
55% of players preferred the Team Deathmatch, followed by the Kiss of Death (one shot one kill mode) at 30%.
Approximately 75% of players rated the gunplay in the range of ‘good’ to excellent’.
10% of players reported device overheating, showcasing areas for further optimisation.

The gameplay trailer of FAU-G: Domination was unveiled by Bollywood actor Shri Akshay Kumar earlier this year. Under his mentorship, this game is dedicated to Bharat Ke Veer. Bharat Ke Veer Trust gives homage and support to India’s Bravehearts. To support the families of India’s Armed Forces Martyrs, Nazara donated Rs. 25,00,000 to Bharat Ke Veer and FAU-G: Domination will also feature specific cosmetic items such as badges, of which 100 percent of the proceeds will go towards Bharat Ke Veer.

FAU-G: Domination Pre-Registration Details and Exclusive Offers

Pre-registrations for FAU-G: Domination are now live on the Google Play Store for Android with pre-registrations on the App Store for iOS and iPadOS to follow soon. Pre-registering now gets players the Beast Collection.

The Beast Collection is a limited edition set of in-game cosmetics inspired by the ferocity of the Tiger — India’s national animal.

These include six accessories: frame, banner, avatar, sticker, spray, and charm, as well as six-gun skins: sawed-off shotgun, USP, Scout rifle, M4, Uzi, and Kabar.

The Beast Collection will only be available for players that pre-register and will not be available after launch.

The post Nazara Publishing Announces Android Beta Release Date for FAU-G: Domination appeared first on European Gaming Industry News.

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Week 51/2024 slot games releases

Published

1 day ago

December 20, 2024

George Miller

Reading Time: 4 minutes

Here are this weeks latest slots releases compiled by European Gaming

PG Soft has released its epic samurai saga, Geisha’s Revenge. Set among Japan’s opulent teahouses, the game follows leading light Ayane on her quest to seek justice for her family by the ruthless samurai. Geisha’s Revenge is a video slot presented within a framework that has five reels, the first of which has five rows and the next four have six rows.

3…2…1… Get ready for blastoff in Wild Moonsters, the latest intergalactic slot adventure from in-demand studio, Silverback Gaming. Players go on a cosmic thrill tide as they navigate a hexagon game grid to create stellar clusters of 4+ matching symbols to form wins. They also need to keep their eyes out for the Wild symbol, which shoots excitement, and big win potential, into the stratosphere.

TaDa Gaming has released its latest slot game, Lucky Jaguar. With three rows, three reels and five fixed play lines, this fast gameplay slot delivers wild bonuses and multiplier bonuses alongside the TaDa Extra Bets and Lock and Respin features. The wealth of the Aztec empire is waiting in Lucky Jaguar in both the main game and the bonus game, which can trigger randomly at any time to deliver the Lock and Respin feature.

ICONIC21, the in-demand provider of live content, continues to push boundaries with the addition of slots to its growing game portfolio. The provider’s slot games will combine classic mechanics, engaging narratives and fun characters offering players an interactive experience throughout. The first slot titles to go live will be Solar Sands, Vitamin Joy, Tortuga Fortune and Juicy Coins: Hold & Win with ICONIC21 planning to launch one slot per month in 2025. The slots are high volatility ones, with max wins ranging from x300 to x36,000. Wild & Scatter Symbols, Hold & Win, Bonus Rounds, Multipliers and Free Spins ensure the games have a fluid, entertaining gameplay.

BGaming takes the concept of the ever-popular premium rubber duck stores and swings open the doors to its own slot version in Lucky Ducky X-Mas Edition. This quacky festive title features the popular MergeUp™(patent pending) mechanic with nine levels, Free Spins with multipliers up to x128, and both the Buy Bonus and Chance x2 buttons.

Evoplay has launched Sea of Wealth, an underwater adventure combining engaging visuals and innovative features. The game features a 3×3 reel layout with symbols inspired by marine life and hidden treasures. Poseidon serves as the Wild symbol, while his Trident activates the Bonus Game when paired with Bonus symbols. With Trident Magic, Poseidon’s Trident collects values from Bonus symbols, while Trident Shot can trigger a transformation of random symbols on reels 1 or 3 into Bonus symbols, increasing the likelihood of activating the Bonus Game.

Nolimit City returns to the most profitable sweatshop in the business in Outsourced: Payday. Workers have been replaced by claws who never call in sick! This Labs-branded slot takes the Outsourced theme to the next level. This is yet another experimental game that changes the way players enjoy Nolimit City’s slots.

Battle the beast and claim untold riches in Jolly Roger Wild Kraken! This high-seas pirate expedition takes players deep into the Kraken’s lair, where treasures await those brave enough to face the fury of the legendary Wild Kraken. Play’n GO’s latest release brings back Captain Red Roger in an all-new nautical escapade. Having braved countless dangers in search of treasure, Roger now sets his sights on Kraken Deeps – a perilous archipelago shrouded in mystery and riches.

PopOK Gaming announced the launch of Papai Noel da Fortuna, the latest holiday-themed slot game. Just in time for the season of joy, this exciting release captures the magic of Christmas and New Year with festive fun, dazzling rewards, and immersive gameplay. Step into a winter wonderland where Santa Claus himself takes center stage, filling the reels with sparkling ornaments, golden bells, and overflowing gift bags. With Papai Noel da Fortuna, every spin is a celebration of holiday cheer and fortune.

ELA Games, a modern and trailblazing game development studio, announces the release of its latest game, Wealth of Legends. The slot aims to attract players of various audiences with its unique format, exciting graphics and captivating features. The 5×5 game pays all ways, giving players plenty of opportunities to win during the base game, keeping the playing experience engaging. Landing a coin symbol in the special zone triggers the Hold & Win feature, which begins three free re-spins. Collect special jackpot coins for a lucrative win!

The post Week 51/2024 slot games releases appeared first on European Gaming Industry News.