Easing gambling regulations may help the Swedish economy, a new research claims. According to Branscheforenigen för Onlinespel (BOS), lifting certain regulations may increase tax revenue and create new jobs.
Dr Sanandaji Believes There Is a Significant Unrealized Potential
Dr Nima Sanandaji compiled compelling evidence about how Swedish gambling can become better and more contributing to society. To that end, certain restrictions need to be lifted, the specialist insists. He argued that licensed online gambling cannot reach its full potential as things stand now.
Dr Sanandaji explained that the regulations force certain players to turn to unlicensed operators, which undermines the taxes the Swedish government receives and hurts the licensed gambling industry.
To illustrate his point, the researcher said that the legal market adds a billion dollars to Sweden’s GDP a year. Meanwhile, unlicensed operators will earn about $2.1 billion between 2021 and 2025, according to estimates. Therefore, it is crucial to limit the impact of offshore operators and funnel players towards the legal alternative. Dr Sanandaji believes the best way to achieve this is to make the legal market more appealing than its unlicensed counterpart.
The Bonus Ban Is Hurting the Swedish Economy
Dr Sanandaji predicts that if channelization to the legal gambling market increases from 80% to 90%, it would increase Sweden’s GDP by around $109,000. Furthermore, it would see the creation of hundreds of new jobs, the specialist insists. Right now, 4,200 people are working in the industry. Dr Sanandaji believes this number may increase by at least 460 more.
The report went into detail about gambling bonuses, claiming that they are the key to channeling players towards licensed operators. Currently, companies can offer only a single startup bonus offer per player.
While many regulators frown upon bonuses as they sometimes trip bettors into compulsive spending. However, restrictions encourage bettors to turn to the black market, which is why Dr Sanandaji believes some rules are harmful. He condemned the ban:
Sweden pays a high price for that regulation in terms of lost players who instead choose unlicensed play.
Dr Nima Sanandaji
Gustaf Hoffstedt, the secretary-general of BOS added that the Swedish market hides a huge unrealized potential. He added that he hopes the current report will make people more interested in how gambling contributes to the country.
During the pandemic, Sweden’s regulator introduced a deposit cap to prevent online bettors from harmful behavior. However, the authority was inconclusive on whether its regulations had the intended effect.