ATG CEO Advocates for Differentiated Tax Rates in Sweden’s Gambling Industry

ATG CEO Proposes Differentiated Tax Rates in Swedish Gambling Sector

In the face of a Swedish government proposal to increase gambling tax, Hans Lord Skarplöth, the CEO of Aktiebolaget Trav och Galopp (ATG), has called upon the authorities to explore a differentiated tax rate system for sports betting. Skarplöth pointed out that several other countries have implemented distinct tax rates for sports betting and iGaming, highlighting the need for a similar approach in Sweden.

The Swedish government’s proposal suggests raising the gambling tax from the current 18 percent to 22 percent, set to take effect on July 1, 2024. This move is anticipated to generate an additional SEK540 million (€45.5 million) in annual tax revenue.

Skarplöth expressed his dismay at this development, describing it as a “shock.” In a blog post, he implored the government to consider increasing the tax rate exclusively for iGaming, while maintaining the existing rate for horse betting and other sports betting activities.

He stated, “The proposal for a higher excise tax on gambling companies came as a shock. The reaction was a sense of resignation; how would the already hard-pressed horse industry cope with the fact that the contribution from ATG was greatly reduced? Shortly afterward, the will to fight was awoken; can there be a way forward that fills the treasury, without jeopardizing equestrian sport? Strengthened by our research, we have put a lot of energy into demonstrating the advantages of a differentiated gaming tax in Sweden. The hope is now that our analysis will move legislators from insight to action. It is a good starting point for our proposal: keep the tax on horse betting and sports, but raise it on online casinos.”

Reforming ATG’s Governance Structure

Additionally, Anders Källström, the chairman of Svensk Travsport (ST), has called for a reform of ATG’s governance structure in 2024. Svensk Travsport, the Swedish trotting and breeders association, holds a 91 percent stake in the betting operator.

ATG, established by the state in 1974 with the objective of providing sustainable funding for Swedish thoroughbred racing and trotting, operates independently but is governed by the government. Svensk Galopp, the horseracing authority, owns the remaining 9 percent not held by ST. Källström’s call for reform suggests potential changes in ATG’s governance structure in the coming year.