DGE-Funded Report Sheds Light on New Jersey Problem Gambling Rates

DGE-Funded Report Sheds Light on New Jersey Problem Gambling RatesAccording to a study titled “The Prevalence of Online and Land-Based Gambling in New Jersey,” which was backed by New Jersey’s Division of Gaming Enforcement (DGE), the state’s high-risk problem gambling rate is on a decline and has gone from 6.3% to 5.6%. The results also show that low and moderate-risk gambling has decreased by 2% and now stands at 13%.

The report was conducted by researchers from the Rutgers University School of Social Work, Center for Gambling Studies, and a total of 3,512 individuals from New Jersey were surveyed between December 9, 2020 and April 30, 2021. This is the second such study, with the first one having been conducted in 2017. The questions involved 15 types of gambling activities, including but not limited to slots, lottery, games of skill, live casino games, and sports betting. Of the said activities, participation in lotteries was the most widespread, with 73% of those surveyed reporting that they had purchased lottery tickets.

Attorney General Matthew Platkin stated that the aim of this study was to examine how New Jersey residents partook in gambling, identify the struggles of individuals who are at risk, and formulate programs that could aid those in need.

The Findings

About 61% of the participants answered that they had gambled in the past year, and around one-third of them were individuals with a yearly income of less than $30,000.

Sports betting and online gambling saw an increase, while retail gambling now stands at 49%, which is 27% less than what was recorded in the 2017 report. Additionally, the rates of gamblers who placed bets on online websites and at land-based locations went from 19% to 36%, with respondents citing participation in an average of six gambling activities.

It was found that around 32% of those who partook in mixed gambling were facing gambling problems, and these results were similar to those of the respondents who gambled exclusively online. Overall, the percentage of problem gambling in New Jersey was three times that of the US national average.

The study also highlighted that low-income individuals were overrepresented when it comes to problem gambling, as over 14% of those who reported being high-risk problem gamblers had a household income of less than $15,000.

What Can be Done to Combat Problem Gambling in New Jersey

Despite the promising results of the state-specific decline, the report also found that the rate of problem gambling in New Jersey versus that of the United States average remains concerning, and the state is still facing gambling-related problems overall.

Currently, the DGE and the New Jersey state regulate numerous licensed entities to ensure that all operators follow strict requirements regarding responsible gambling. Lottery-related operations, on the other hand, are regulated by the New Jersey Lottery Commission. Other watchdogs include the Racing Commission, the Casino Control Commission, and the Legalized Games of Chance Control Commission.

The report highlighted how having a variety of regulatory bodies that oversee the operations of gambling activities in New Jersey has led to an exacerbation of the problems tied to how many individuals partake in a variety of gambling activities. Due to this, a recommendation was made for the regulatory entities to develop “uniform regulations,” and urged for the design of a single online portal that users could access in order to utilize responsible gambling tools across various gaming activities. Another recommendation pointed to the necessity of more efforts to assist individuals from vulnerable communities. A need for further measures to prevent problem gambling among minors was also noted to be of utmost importance.

Portugal Generates €205.9M in Online Gambling Proceeds in Q2 2023

Portugal Generates €205.9M in Online Gambling Proceeds in Q2 2023As shown in data provided by Portugal’s Gaming Regulation and Inspection Service (SRIJ), a total of €205.9M in online gaming proceeds was generated over 2023’s second quarter. According to the watchdog, €122M of the money was generated from games of chance, while €84M came from sports betting.

The announcement marks the continued growth of Portugal’s remote gambling sector, as it shows a 41.8% increase compared to the second quarter of 2022 when the revenue had reached €145.2M. The report also highlights how the figure broke last year’s record of €195.3M, i.e., the earnings recorded for 2022’s Q4.

Portugal has thus far issued a total of 30 online gambling licenses, 17 of which were tied to the operation of games of chance, while the rest enabled companies to offer sports betting to Portuguese bettors legally. The llicenses in question have been granted to a total of 17 entities.

The SRIJ’s data also shows that the number of registered users is up by 2.9%, and the total number of accounts at all 17 licensed operators’ websites stood at 3.8M for the second quarter. This number is up by 190,200 compared to Q1’s figure of 3.7M. The vast majority of online players (95.8%) were Portuguese nationals, while the majority of those left were individuals of Brazilian nationality. The Porto district’s residents made up 21.2% of all registered individuals, while the district of Lisbon is home to 20.6% of the country’s online gamblers according to the report.

Another player-related data accounted for how many individuals have excluded themselves from partaking in remote gambling. A total of 181,600 Portugal-based gamblers have self-excluded from online wagering, with 18,100 individuals having been put under temporary self-exclusion, while 163,000 were excluded for an indefinite period and their accounts were closed.

Games of Chance Have the Lead

The sports betting earnings of €84m are a bit lower than Q1 of 2023 (€85.7M), which does not come as a surprise as the data shows that Portuguese bettors spent €357.6M on sports betting over Q2 versus the €441.4m wagered in the first quarter. Thus far, neither the first nor second quarter overtook last year’s Q4 record of €458.7m wagered on sports events. In contrast, spending on games of chance saw an increase, with the 2023 Q2 numbers reaching an impressive €3.24B, which translated to a revenue of €110.7M.

Portugal is a country known for its passion for football, and this is evident when it comes to online betting as well. The SRIJ’s data showed that the majority of bettor funds were spent on football events (68.4%). Tennis is the runner-up, while in third place we have basketball, with the sports making up 20.1% and 7.4% of the total bets made, respectively.

As for iGaming, the data points towards slot machines as being the most popular, given how 82.5% of the second quarter’s bets were placed on slots. French roulette falls second with 7.6%, while in third place, we have blackjack, which accounted for 5.4% of player bets.

Chile’s Enjoy to be Potentially Acquired by Mexican Company Logrand

Chile’s Enjoy to be Potentially Acquired by Mexican Company LograndChilean casino operator Enjoy could be acquired by Mexico’s Logrand Entertainment Group in a potential purchase. These developments follow a failed merger between Enjoy and another large Chilean gambling company, Dreams, as the companies’ plans fell through this April. Enjoy also shared in August that it was looking to sell company assets, and according to anonymous sources that reached out to media outlet Pulso, Logrand is discussing plans to potentially acquire Enjoy.

It seems that Logrand will not acquire the entire Enjoy company, however. Instead, only Enjoy’s Chilean operations will be put under the control of Logrand as part of the potential deal. Logrand has not expressed a desire for the inclusion of other company assets in the acquisition.

Enjoy and Dream’s Planned Merger Was Rejected

Enjoy and Dreams’ plans to merge were first made public in 2022. The first signs of trouble surfaced at the beginning of April 2023, when both Enjoy and Dream faced accusations which alleged that the companies had conducted undisclosed talks via instant messaging application WhatsApp. The app is known for being privacy-oriented and enabling individuals to communicate without being detected, and Enjoy and Dream’s executives were alleged to have used this to their advantage in order to manipulate a tender offer. This prompted Chile’s National Economic Prosecutor (FNE) to launch an investigation.

Moreover, Chile’s National Economic Prosecutor had expressed worries over the merger even before information regarding the alleged secret discussions had surfaced, citing concerns surrounding market competitiveness.

As a result of the investigation, shareholders put a halt to the merger. Had the deal gone through, 64% of the joint entity would have belonged to Dreams’ shareholders, while Enjoy shareholders would have possessed 36%.

Enjoy’s Chilean Operations Have a 40% Market Share in the Country

Enjoy saw significant restructuring changes in 2022, and the creditors tied to the company at the time seized full control of Enjoy’s operations. Currently, Euroamerica is the shareholder with the biggest ownership of Enjoy assets – 15.25%. Enjoy has had its ups and downs since then. The year 2023 was rough for the company, seeing as despite seeing an 8.26% income growth in comparison to 2023, the losses of CLP38.6 billion ($45.2 million) recorded in the first half of 2023 mark a difference of around CLP12.5 billion ($13.9 million) in additional losses compared to the previous year.

In a results presentation to investors, Enjoy had a 37% market share in the country in 2023’s first semester, which was slightly lower than competing company Dreams’ 39%. The tides turned in the fiscal year’s second quarter, however, as Enjoy’s market share grew to 40%, while Dreams’ was lowered to 37%.

Both companies remain the largest casino operators in Chile, and Logrand’s potential acquisition of Enjoy could lead to improvements in the Chilean operator’s situation. Logrand Entertainment Group’s operations are, at the time of writing, strictly focused within the territories of six states within Mexico, but it seems that the company is looking to expand its reach to an international audience, namely Chilean gamblers.

Dream11 Classified as Game of Skill Platform by Bombay High Court

Dream11 Classified as Game of Skill Platform by Bombay High CourtThe High Court of Bombay rejected a Public Interest Litigation alleging Dream11’s business activity fell under the category of gambling. The court classified the games available on the fantasy sports platform as games of skill.

Dream11 is known to be the first fantasy sports company to launch its business in India. It enables its users to play various fantasy sports including cricket, football, hockey, rugby, basketball, and handball, among others. It holds a leading position in the Indian gaming market, with a user base of more than 180 million customers and a net profit of INR 142 crores as of March 31, 2022.

The court based its decision on the fact that winning on Dream 11’s platform is determined by players’ skills, expertise, decision-making, and attentiveness, rather than chance.

Public Interest Litigation is well-established within India’s judicial system. It serves as a means for creating and enforcing rights, and as such, plays an essential role in the nurturing of democracy.

The Public Interest Litigation against Dream11 was represented by Advocate Sujay Kantawala. He argued that the company actually offered a gambling-related product and aimed to evade tax payments.

Judges Ranjit More and Bharati Dangre heard the case and eventually ruled in favor of the fantasy sports provider, confirming its business activity did not constitute gambling. The allegations were refuted, emphasizing the skill-based nature of the games. The court further highlighted that fantasy games’ outcomes were in no way related to the outcomes of real-life games.

As regards the tax evasion allegations, the court established that such can be claimed provided that the business offered gambling or betting services, which was not the case. Furthermore, the court also censured the petitioner for trying to review an already-settled case.

Indian Tax Department Concerned over Tax Evasion by Fantasy Sports Platforms

Due to concerns over tax evasion by fantasy sports platforms, the Indian Tax Department launched detailed investigations back in the spring. According to the current regulations, taxes are paid on the basis of commissions acquired by the businesses from user contributions.

However, the tax authorities are now considering a change. Instead of levying the taxes on the said commissions, they might be applied to the entry amount for the sports contests. This would eventually negatively affect the businesses and increase the final taxable amount.

Previously, Social activist Avinash Mehrotra also represented a Public Interest Litigation, alleging that fantasy gaming apps promote gambling. Consequently, the case aroused discussions regarding the nature of these platforms and their impact on society.

The Public Interest Litigation against Dream 11 sets a standard to be followed in the future regarding the legal classification of fantasy sports platforms operating on the Indian market, as well as the associated taxes.

Thailand’s Deputy Prime Minister Expresses That the Legalization of More Forms of Gambling Would Be Beneficial for the Country

Thailand’s Deputy Prime Minister Expresses That the Legalization of More Forms of Gambling Would Be Beneficial for the CountryAs Thailand’s fight against illegal gambling continues, the Deputy Prime Minister of Thailand, Somsak Thapsutin, made a statement on Tuesday expressing his support for the potential expansion of legal gambling within the country.

The DPM noted how betting on cockfighting and bullfighting events is a regulated form of gambling within Thailand, yet football betting and other types of gambling are not legal under Thai law. He continued, addressing taxation in particular and how the country and its residents could stand to benefit from the expansion of the country’s regulated gambling sector.

According to the politician, online gambling is especially lucrative. He also said that the profits that could be generated from remote gaming would aid Thai authorities in helping the elderly, Thai individuals with disabilities, and children.

Mr Somsak’s statement was made in the wake of an investigation concerning illegal gambling, which involved the raid of the home of Thailand’s Deputy National Police Chief, Surachate Hakparn. His Bangkok-based home was not the only building to be swept, as the premises of 30 locations in total were subject to the Thai law enforcement’s operation.

The operation resulted in over 20 arrests, but this did not include the deputy national police chief. In a statement following the raid, Mr Surachate claimed that he did not have any grounds to worry about the investigation and that he was certain of his innocence. He would later state that the sweep of his residence was “political” in nature, as the search warrant had been issued without the court being informed that the home belonged to him. He also called for the investigation of the police officers who were involved in the raid, namely regarding their potential involvement in illegal online gambling.

Legal Gambling is Strongly Limited in Thailand

Thailand’s current gambling landscape does not have much to offer when it comes to what gambling operators can provide to individuals who wish to play games of chance or partake in sports betting. Most forms of gambling are prohibited under Thai law, with the national lottery, horse race betting, and wagering on other animal sports being the only types of gambling available to Thai residents. Online gambling of any kind is currently considered to be against the law, and Thai law enforcement has implemented numerous measures in order to bust illegal gambling operators.

The latest investigation is the one that involved Surachate Hakparn, and it was conducted in order to uncover the officer’s alleged ties to “Betflix”, an illegal gambling ring that is believed to be tied to online gambling. Apart from the September raid, another operation was undertaken in December, and over 30 individuals were found to have operated online gambling websites. May saw another raid, this time of an illegal casino, which led to the arrests of over 80 residents of foreign countries.

Norway Regulator Screens Bank Conformity to the Illegal Payments Ban

Norway Regulator Screens Bank Conformity to the Illegal Payments BanThe Norwegian Gambling Authority, Lotteritilsynet, unveiled it would implement stricter measures concerning the control of transactions to and from unlicensed gambling operators. The regulatory body disclosed it would put under scrutiny nine banks and conduct a thorough inspection of their compliance with the illegal payments ban.

As per Section 5 of the Norwegian Gambling Scheme Act, processing transactions to and from unlicensed gambling operators is prohibited. The ban was introduced in 2010 and consequently, the regulator was empowered to order banks to impede such transactions.

Lotteritilsynet did not communicate the list of the banks whose operations would be carefully monitored. Furthermore, there was no mention that there already was any evidence of failing to comply with legislation.

Each of the banks received a briefing mandating detailed information concerning the internal policies implemented to impede deposits and withdrawals from illegitimate gambling operators. The financial institutions were requested to describe in detail their accepted practices.

Commenting on the forthcoming compliance check, Rannveig Gram Skår, senior legal advisor and data protection officer at Lotteritilsynet, said that it would be the first exhaustive inspection of compliance. He added that the regulatory body has already invested a lot of time in compliance discussions with banks and financial institutions within the country.

The banks under review are supposed to follow up on the briefings within three weeks. Gram Skår added that the regulatory authority expected them to conform to its requirements.

Lotteritilsynet Conducted a Survey into Illegal Payments Ban

Earlier this summer, the Norwegian Gambling Authority conducted a survey transmitted to 170 banks to verify their internal procedures taken to impede payments to and from offshore gambling operators. Furthermore, it aimed to investigate their approach to problem gamblers.

As already mentioned, the ban on illegal gambling transactions was adopted in 2010. However, according to information by Lotteritilsynet, transactions worth nearly NOK6 billion ($628.9 million) were associated with deposits and withdrawals from unlicensed operators. This ultimately propelled the authorization of the regulator to order banks to terminate transactions with illegal gambling businesses.

Based on the findings of the survey, the regulator planned to come up with a more precise plan to curb the negative impact of illegal gambling. Putting the operations of nine banks under scrutiny is a vital step toward the implementation of stricter measures.

The senior legal advisor of the Norwegian Gambling Authority concluded his statement underlining the fact that the ban on transactions associated with unlicensed operators was meant to safeguard the Norwegian gambling monopoly model and forestall any negative impact of gambling.

Despite Norway’s reluctance to abandon the state monopoly model on gambling, the European Gaming and Betting Association (EGBA) has recently prompted the country to reconsider its firm stance and eventually open its market to offshore operators.

Kentucky Sports Betting Spikes, with Wagers Worth $4.5 Million over the Last Two Weeks

Kentucky Sports Betting Spikes, with Wagers Worth $4.5 Million over the Last Two WeeksAlthough legal sports betting at Kentucky land-based operators launched a little more than two weeks ago, proceeds in excess of millions of dollars have already been generated. As per the latest reports, more than $4.5 million worth of bets have been placed over the last two weeks.

Since September 7, when licensed sports betting operators welcomed their first customers in Kentucky, local sports betting enthusiasts have been able to enjoy their favorite pastime without having to pay a visit to a neighboring state where gambling is already legalized. Local punters can now benefit from the convenient proximity of retail betting locations, which eliminates the necessity to travel to Indiana, for example.

Sports betting legalization affected positively local businesses such as Turfway Park Racing and Gaming, based in Florence, Kentucky. Gary Pecorello, Marketing Director at the company, confirmed there was an unseen surge in business ever since the long-awaited legalization of the sector. He further added that the 2023 NFL season and the various associated betting markets took up the lion’s share of wagering activity right now.

Sports Betting Revenue in Kentucky to be Reserved for the State’s Pension Fund and Problem Gambling Facilities

Gambling tax revenue is utilized for a variety of purposes across the states, such as the funding of public programs and services. As previously covered by BonusInsider, according to estimations by state officials, the legal sports betting sector in Kentucky will generate more than $23 million in revenue per year.

Kentucky ranks among the states with the most underfunded public employee pension funds. Therefore, the state has decided to direct the sports betting tax revenue toward its pension program. The state pension plan is running more than $24 billion short of the money needed to pay in full the retirement benefits of its citizens.

Besides the state’s pension fund, the tax proceeds will be used to support the problem gambling facilities in the state. Gary Schneier, a national board member of Stop Predatory Gambling, a non-profit organization based in Washington, D.C., shared his thoughts in relation to the state plans to set aside 2.5% of the gambling tax revenue to problem gambling. He said that this move is a “reaction to the problem”.

Once himself addicted to gambling, Schneider has now dedicated his life to helping others cope with the compulsive desire to gamble. He went on to share his hopes that more resources would be directed to gambling prevention, especially to educating young individuals in schools. He further added that keeping them aware of gambling’s possible risks and harms is of essential importance.

While retail betting in Kentucky has been running and operational for more than two weeks now, the first online wagers in the state will be placed within three days, on September 28. Kentucky sports betting app preregistration is already live on approved online betting apps.

Fantasy Sports Operators in Florida Warned to Cease and Desist Operations

Fantasy Sports Operators in Florida Warned to Cease and Desist OperationsUnderdog Sports LLC, SidePrize LLS, and Betr Holdings Inc. were issued cease-and-desist letters by the Florida Gaming Control Commission (FGCC). The warnings concern alleged betting games that were offered within the operators’ fantasy sports applications illegally, and each company was accused of operating an illegal lottery and accepting bets from Florida-based gamblers. If the operators fail to act on the orders, they could face legal repercussions.

“Parlay-prop-style” offers, in particular, are the subject of concern due to their similarity to sports betting. According to emails that were acquired by the News Service of Florida, the letters may also affect season-long fantasy sports.

In the letters issued by FGCC Executive Director Louis Trombetta, he demands that the operators cease and desist the offering of skill-based bets to Florida residents. It is also stated that wagering on contests based on skill is forbidden under Florida law, and the prohibition includes sports betting. Operators found guilty of offering sports betting could face felony charges. Trombetta also wrote that under state law, the only form of sports betting that is deemed legal is that of gambling companies operating under a tribal-state gaming compact.

As shown in documents obtained by Legal Sports Report, Underdog Sports LLC and SidePrize LLS faced similar accusations in Wyoming this June. Namely, both companies were warned to immediately halt alleged illegal operations within Wyoming by the state’s Gaming Commission. The warnings were once again centered around the offer of sports bets within fantasy sports applications.

The Allegations are Another Result of the FGCC’s Continued Fight Against Illegal Gambling in Florida

Currently, the three operators are the only gambling companies to be issued cease-and-desist warnings by the FGCC as part of the fantasy sports crackdown. FanDuel and DraftKings, two of the largest operators that offer fantasy sports contests in the US, have thus far not faced accusations of offering fantasy sports bets illegally in Florida. However, Florida’s gambling commission has recently conducted other operations that targeted illegal gambling businesses within the state.

An arcade in St. Lucie County was subject to a raid by Florida law enforcement this month, which resulted in arrests, the seizing of gambling equipment, and the establishment’s closure. Another raid, this time undergone by the Manatee County Sheriff’s Office, closed the Spin City Arcade of Bradenton following a search warrant. As a result, dozens of slot machines and computers were seized, and the business was shut down.

The FGCC’s crackdown on illegal gambling is happening amid a long-running legal battle tied to the Gambling Compact signed in April 2021. According to the deal, operations concerning online sports betting would be conducted strictly by the Seminole Tribe. Craps and roulette games were also a part of the deal. When it comes to fantasy sports contests, however, the legislation would allow for them to be conducted by non-tribal gambling operators.

Oklahoma Casino Golden Mesa to Celebrate Expansion on September 22

Oklahoma Casino Golden Mesa to Celebrate Expansion on September 22The Golden Mesa is among Oklahoma’s most iconic casinos, and it is going to undergo a $70 million expansion. The occasion will be celebrated on the casino’s premises on Friday, September 22.

Owned by the Shawnee Tribe and managed by Global Gaming Solutions, the casino’s location makes it popular among gaming enthusiasts in both Oklahoma and the states neighboring the Oklahoma Panhandle. The expansion will result in the addition of around 400 electronic games to Golden Mesa’s roster of casino products, thanks to the fact that the gambling floor will be twice its current 20,000-square-foot size once constructions are complete. Other major enhancements will include a hotel with 100 rooms, a recreational vehicle (RV) park, and a brand new restaurant.

Golden Mesa has over 600 electronic games currently, while its selection of classic casino products comprises six table games in total. As for the casino’s amenities, a restaurant dubbed The Copper Cantina, along with the Silver Saddle gift shop and the Gold Spur bar, are what guests will find available within the establishment.

Golden Mesa’s opening ceremony was held in 2019, making it the lone casino in the Oklahoma Panhandle at the time, and it continues to be the only land-based gambling establishment in the region. The casino also contributed over 170 job positions to the state. Gambling enthusiasts who reside within this region of Oklahoma, along with those located in Texas, New Mexico, Colorado, and Kansas counties that are near the Oklahoma Panhandle, do not have many close locations to choose from when it comes to games of chance. This allows Golden Mesa to essentially dominate the region and entertain a large number of guests.

Oklahoma’s Gambling Industry Has Come a Long Way

While there is a notable scarcity of casinos in the immediate area around Golden Mesa, the state of Oklahoma as a whole is no stranger to gambling establishments. There are currently more than 140 casinos and gaming centers in Oklahoma, making it one of the top states when it comes to brick-and-mortar gambling locations.

The current situation is in a stark contrast to the Oklahoma gambling scene from around two decades ago. Up until 2004, the only form of tribal gambling that was legal within Oklahoma was horse race betting. Years of persistent lobbying and hard work from the state’s tribes, however, resulted in the passing of Senate Bill 1252 in 2004, which legalized the tribal operation of electronic games within Oklahoma.

Now, Oklahoma’s gambling scene continues to see improvements. In addition to the Golden House’s upcoming expansion, a new Osage casino is under construction and set to open this October. The gambling establishment will be the replacement of Pawhuska’s current casino. In addition, the month of May saw the Iowa Tribe’s announcement that a new Harrah’s casino would be constructed between Oklahoma City and Tulsa. The casino resort will be run by Caesars Entertainment, and it will house hundreds of slot machines.

Sweden Government Plans 4% Gambling Tax Rate Increase Starting July 2024

Sweden Government Plans 4% Gambling Tax Rate Increase Starting July 2024An increase of the current gambling tax rate from 18% to 22% of gross gaming revenue (GGR) is envisaged by the Sweden government. That would generate an extra SEK540.0 million ($48.4 million) of tax revenue per year. Provided that the government sanctions the proposed tax raise, it is expected to enter into force as of July 1, 2024.

Gambling in Sweden is legal and regulated by the state-owned Spelinspektionen. As of January 1, 2019, Sweden abandoned the state-run gambling monopoly model and opened its market to offshore operators. Four years into the liberalization of the gambling industry, Sweden’s government believes that the industry should have already achieved balance.

In addition to the expected stabilization of the market, Sweden’s government is apprehensive about the current rate of channelization, or the proportion of properly regulated gaming. According to a report, published in March 2023 and provided by the Swedish Trade Association for Online Gambling (BOS – Branschföreningen för Onlinespel), the current channelization rate stands at merely 77%.

It is in stark contrast to the expected rate of 90% channelization, which the government said would be achieved by the proposed increase of the gambling tax rate.

According to governmental officials, the progress in terms of market stabilization and channelization over the last four years, would not be affected by the proposed tax increase. The additional tax revenue would be directed toward the financing of various government activities.

Furthermore, as of July 1, 2023, the Parliament adopted new measures to curb illegal gambling and match-fixing. As per the amendment to the Gambling Act (2018), all legal gambling operators are supposed to cooperate with Sweden’s Police Authorities in their fight against gambling-related offenses. This would eventually promote a fair and transparent relationship between the license holders and the law enforcement authorities.

BOS Expresses Concerns Over Planned Tax Increase

The unveiled plans did not remain unnoticed by BOS, the Swedish Trade Association for Online Gambling. Gustaf Hoffstedt, the organization’s Secretary-General, immediately expressed his concerns over the tax increase. He disapproved of the proposal insisting that the government should reevaluate it.

As already mentioned, the report by BOS revealed the rate of current market channelization stood at 77%. The report indicated that some gambling verticals, such as online casinos, showed market channelization as low as 72%.

The Secretary-General went on to add that this rate might decrease even more if the proposed tax rate of 22% came into effect. It would eventually reduce the market channelization to levels valid before Sweden liberalized its gambling market in 2019.

The current gambling tax rate of 18% is already comparatively higher compared to other EU countries. All in all, the governmental proposal is yet to be discussed.