Sweden’s BOS Disagrees with ATG on Proposed Gambling Tax Hike
Strong Opposition from BOS to ATG’s Tax Proposal
Gustaf Hoffstedt, the secretary general of Sweden’s Online Gambling Trade Association (BOS), has openly expressed strong disapproval of ATG CEO Hasse Lord Skarplöth’s proposal to raise taxes on online gambling operators in Sweden.
ATG’s Call for Higher Taxes and the UK Comparison
Hasse Lord Skarplöth recently suggested that Sweden should emulate the United Kingdom by increasing taxes on licensed online gambling providers, exemting the horse racing industry from the tax hike. The UK’s recent autumn budget announced a planned increase in the remote general betting duty from 15% to 25% by April 2027, while the remote gaming duty is set to jump from 21% to 40% in April 2026. These changes sparked criticism from several quarters, with concerns that the hikes could negatively impact iGaming, sports betting, and horse racing.
BOS Warns of Negative Consequences
In contrast, Hoffstedt cautioned that raising taxes on the online gambling sector in Sweden could be detrimental, especially given the country’s significant black market for gambling. He described such tax increases not as targeted solutions but as harmful measures that risk pushing players towards unregulated offshore options, thereby undermining consumer protection and shrinking the legitimate gambling market.
Hoffstedt pointed to recent estimates from ATG which showed Sweden’s channelization rates between 74% and 85% in the third quarter—falling short of the government’s 90% target—indicating room for improvement in keeping players within licensed frameworks.
Evidence from Gambling Harm Research
Hoffstedt also challenged the logic behind singling out online gambling for higher taxes. Research published by BOS revealed that since the launch of Sweden’s legal online gambling market in January 2019, gambling-related harm has actually decreased. Data from the fourth quarter of 2024 showed that only 1.3% of the Swedish population scored 3 or above on the Problem Gambling Severity Index (PGSI), down from 2.2% at the market’s start, despite easier access to online gambling options.
He emphasized that gambling generally poses little risk to individuals without predispositions but can be harmful to those already facing gambling problems, noting that the lottery sector had the highest share of problem gamblers.
Proposed Alternatives to Tax Hikes
According to Hoffstedt, tackling problem gambling effectively requires better regulation rather than tax increases, with a focus on increasing channelization—encouraging players to gamble within licensed operators. He argued that raising taxes might widen the gap between licensed and unlicensed providers, counteracting responsible gambling policies.
Furthermore, Hoffstedt suggested that if any tax increase is considered necessary, it would be more reasonable to apply it to horse racing bets, which already achieve very high channelization rates of between 98% and 99%, rather than to online casino games.
