Sweden’s gambling sector has united in opposition to a proposal that could redraw the country’s tax landscape. A new initiative is pushing for an updated tax framework similar to the recent UK reforms that introduced differentiated gambling tax rates. Swedish industry representatives argue that even if well-intentioned, the change risks undermining consumer protection and accelerating the drift toward unlicensed play.
The Changes Would Favor Horse Racing Operators
Earlier this week, senior executives from 13 high-profile operators sent a joint letter to the Ministry of Finance asking lawmakers to reject calls for differentiated gambling tax rates. The initiative, supported by horse racing operator ATG, would lower the tax burden on horse betting while raising it on other verticals, particularly online casinos. This approach mirrors the UK’s recent overhaul, where higher tax rates were paired with carve-outs for certain activities.
Sweden’s gambling tax currently sits at22% of gross gaming revenue, applied evenly across all verticals. Under ATG’s proposal, horse betting would drop to an 18% rate, with other gambling products rising to 26% to compensate. Industry leaders argue that such a shift would sabotage Sweden’s ongoing efforts to keep consumers within the regulated market.
The letter, coordinated by the Swedish Online Gambling Industry Association (BOS), places channelization as a primary concern. The letter argues that betting products already enjoy impressive channelization, with horse racing in particular reaching an estimated 98–99%. Meanwhile, the online casino vertical struggles to push beyond 80%, even under optimistic estimates.
Industry Representatives Argue the Proposal Is Unfair
Operators believe that a tax hike will result in tighter margins, fewer bonuses, and less competitive odds, making consumers more likely to pivot toward unlicensed sites. The letter emphasizes that such illegal operators operate outside Swedish consumer protection and do not contribute any taxes. Sweden has yet to meet its long-stated goal of at least 90% channelization, and a sudden change could disrupt these ambitions.
BOS general secretary Gustaf Hoffstedt did not sugarcoat his opinion. He argued that allowing tax relief for a segment that leads in channelization while punishing the one that does not would be “completely incomprehensible” if consumer protection is truly the priority. The group noted that harm exists across all products, including horse betting.
The higher the tax, the greater the risk that the consumer will choose unlicensed gambling, where neither gambling tax nor consumer protection exists.
Gustaf Hoffstedt, BOS general secretary
ATG’s involvement in the debate has also drawn scrutiny. Critics within the industry see its latest proposal as an attempt to secure a market advantage under the guise of public policy. Meanwhile, the Swedish government has not indicated its position. The unified response from operators sends a clear message that stability matters more than experimentation.