Sweden’s plans to liberalize its online gambling market would best be served by imposing a revenue tax rate of between 15% and 20%, according to a new industry-funded report.

In a report prepared by Copenhagen Economics, the authors note that the Swedish government has tasked a special investigator with coming up with proposals to help implement the country’s planned shift from an online gambling monopoly to a system that licenses multiple private operators.

The report suggests that the goal of this switch must address two main points: convincing enough international operators to apply for Swedish licenses and channeling online gamblers to these Swedish-licensed sites.

Using a formula of ‘tax-rate x channelization x volumes = tax revenues,’ the report says a high channeling rate (90% or above) is achieved at a tax rate of 15% of gross gaming revenue, and will result in “no significant substitution to gambling operators outside the licensing system.”