Industry Coalition Challenges Horse Racing Tax Proposal
Trade association BOS has coordinated a joint letter signed by executives from 13 gambling operators in Sweden, calling on the government to reject ATG’s proposal for a restructured tax framework that would lower horse racing betting taxes while raising levies on online casino operations.
ATG has requested that the tax on horse racing be reduced to 18 percent, with the general gambling tax increasing to 26 percent to compensate. The state-owned horse racing operator argues that online casino represents a riskier product category and that horse racing betting provides funding for the broader sector.
Major Operators Voice Opposition
The BOS letter includes signatures from prominent industry executives including Entain CEO Stella David, Betsson Group CEO Pontus Lindwall, and Evoke chief executive Per Widerström. The coalition argues that tax levels directly impact channelization rates—the percentage of customers using licensed operators.
“Horse betting has a channelisation rate of between 98-99 per cent. Online casino, according to the most optimistic estimates, has a channelisation rate of between 72-82 per cent,” said BOS secretary general Gustaf Hoffstedt.
Channelization Concerns at Core of Dispute
The operators contend that raising taxes on online casino would exacerbate existing channelization challenges, pushing more players toward unlicensed operators that offer neither consumer protection nor tax contributions.
“The higher the tax, the greater the risk that the consumer will choose unlicensed gambling, where neither gambling tax nor consumer protection exists,” Hoffstedt explained.
“To then lower the gambling tax for horse betting, which already has a very strong channelisation, and raise it for online casino, which has a very weak channelisation, would be completely incomprehensible. At least for those who prioritize consumer protection.”
Recent Tax Increases and Historical Context
Sweden’s gambling tax rate increased from 18 percent to 22 percent in recent months, affecting all licensed operators. BOS notes that ATG previously paid 35 percent tax on its gambling surplus before the market’s reregulation in 2019.
“The company has therefore de facto already received a significant tax reduction with the reform,” BOS stated in the letter.
The operators are urging the government to maintain current tax structures and focus on improving channelization rates for online casino rather than implementing changes that could weaken consumer protection measures.
Source: BOS
