ATG CEO wants differentiated tax rate for sports betting
The Swedish government has proposed a hike in gambling tax.
Sweden.- The CEO of Sweden’s Aktiebolaget Trav och Galopp (ATG) has urged the Swedish government to consider a differentiated tax rate for sports betting amid proposals to hike gambling tax. He noted that some other countries currently have different tax rates for sports betting and igaming.
The Swedish government has proposed a four-point increase in gambling tax from 18 per cent to 22 per cent. To be implemented from July 1, 2024, the move is expected to generate an extra SEK540m (€45.5m) in annual tax revenue.
ATG CEO Hans Lord Skarplöth has described the measure as a “shock”. Writing in a blog, he urged the government to raise the tax rate for igaming only, keeping the rate for horse betting and other sports betting as it stands.
He wrote: “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 afterwards, the will to fight was awoken; can there be a way forward that fills the treasury, without jeopardising 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.”
The future of ATG governance structure
Anders Källström, chairman of Svensk Travsport (ST), has called for ATG’s governance structure to be reformed in 2024. Svensk Travsport – the Swedish trotting and breeders association, owns a 91 per cent stake in the betting operator.
ATG was founded by the state in 1974 with the objective of providing sustainable funding for Swedish thoroughbred racing and trotting. It is independently owned, with the horseracing authority Svensk Galopp owning the remaining 9 per cent not owned by ST, but the operator’s governance is run by the government.
