Swedish Gambling Industry Opposes Proposed Tax Reform

Unified Opposition Against Proposed Gambling Tax Changes in Sweden

The gambling industry in Sweden has come together to oppose a recent proposal aiming to revise the country’s gambling tax system. The suggested changes would introduce a tax framework similar to the one recently implemented in the UK, which differentiates tax rates across various gambling sectors. However, Swedish operators caution that this shift could weaken protections for consumers and encourage a rise in unregulated gambling activities.

Proposed Tax Changes Favor Horse Racing Businesses

This week, leaders from thirteen major gambling operators appealed directly to Sweden’s Ministry of Finance, urging rejection of the differentiated tax rate proposal. Spearheaded by the horse racing operator ATG, the plan would reduce taxes on horse betting while increasing them on other gambling forms, especially online casinos. This mimics the UK’s approach, which introduced higher taxes alongside certain exemptions.

Currently, a uniform 22% tax is applied to all gambling revenues in Sweden. Under the new suggestion, horse betting would be taxed at a reduced rate of 18%, whereas other gambling segments would face a rise to 26% to balance the fiscal impact. Industry leaders warn that such changes might hinder ongoing efforts to maintain player engagement within the legal betting framework.

The Swedish Online Gambling Industry Association (BOS) coordinated a letter emphasizing the importance of channelization—the practice of keeping players within the licensed market. They highlight that horse betting already achieves exceptionally high channelization rates of approximately 98–99%, whereas online casinos struggle to exceed 80%, even under optimistic assessments.

Concerns Over Fairness and Market Impact

Industry representatives argue that raising taxes on certain gambling sectors would reduce profit margins, shrink promotional offers, and lower odds competitiveness. These conditions could drive more players to unlicensed platforms, which do not provide consumer protections or contribute tax revenues. Sweden has yet to reach its target of 90% channelization, and abrupt tax adjustments could derail progress.

Gustaf Hoffstedt, General Secretary of BOS, expressed strong criticism of the proposal. He stated it would be illogical to grant tax reductions to a sector already excelling in channelization while penalizing others if consumer protection is genuinely the goal. Hoffstedt also noted that all gambling types, including horse betting, carry some level of consumer risk.

Increasing taxes perversely increases the chance that players will turn to unregulated gambling, where consumer safeguards and tax contributions are absent.

Gustaf Hoffstedt, BOS General Secretary

ATG’s active role in pushing the proposal has raised suspicions among competitors, who view it as a strategy to gain a competitive edge under the pretense of policy reform. The Swedish government has not yet declared its stance on the matter. Nevertheless, the united front presented by major operators sends a strong signal emphasizing the need for regulatory stability over risky changes.