Sweden’s BOS Criticizes ATG’s Call to Hike Gambling Taxes

Gustaf Hoffstedt, secretary general of Sweden’s Online Gambling Trade Association (BOS), has strongly criticized ATG CEO Hasse Lord Skarplöth for urging the government to increase taxes on online gambling operators.

BOS Criticizes ATG

Recently, Skarplöth proposed that Sweden follow the UK’s lead by raising taxes on licensed online gambling operators, while exempting the horse racing sector from the increase. In the UK’s autumn budget last week, the government announced that the remote general betting duty will rise from 15% to 25% in April 2027, and the remote gaming duty will increase from 21% to 40% in April 2026. Interestingly, this decision was also met with similar outcries as the BGC criticized the autumn budget, saying it could directly undermine iGaming, sports betting, and horse racing.

Back to Sweden, Hoffstedt warned that such a move in the country would amount to “self-harm” for the regulated gambling sector. He argued that raising taxes on online casino gaming in a market already burdened by one of Europe’s largest black markets is not a precise measure but rather self-damaging. 

According to Hoffstedt, higher taxes do not reduce risk; instead, they drive players offshore, weaken consumer protection, and shrink the regulated ecosystem. He referenced ATG’s own channelization estimate, which ranged between 74% and 85% in Q3, which is below the government’s target of 90%.

Hoffstedt also questioned the reasoning for targeting online gambling with higher taxes. The BOS recently published research showing that gambling-related harm has not increased since Sweden launched its legal online market in January 2019. Their data indicate that in Q4 2024, 1.3% of Sweden’s population had a Problem Gambling Severity Index (PGSI) score of three or higher, down from 2.2% at the market’s inception, despite the greater availability of online gambling.

Hoffstedt stated that all forms of gambling seem equally harmless for individuals without risk. However, he noted that all types can be harmful for those already struggling with gambling problems, with the lottery segment showing the highest proportion of problem gamblers.

What’s The Alternative?

According to Hoffstedt, the solution for problem gamblers is not higher taxation, but effective regulation, beginning with channelization. He argued that if the objective is to ensure channelization and player safety, widening the gap between licensed and unlicensed operators would run counter to responsible policy.

Hoffstedt also suggested that if Sweden were to contemplate a tax increase, it would be more “rational” to focus on horse racing bets rather than online casinos. He noted that horse betting already enjoys exceptionally high channelization rates, ranging from 98% to 99%.