iGaming Association Rejects Higher Casino Tax Proposal in Sweden
Sweden's online gambling trade body says raising casino taxes would damage the regulated market and push players offshore.
LISTEN TO THIS ARTICLE:BOS, the Swedish Trade Association for Online Gambling, has publicly opposed calls to impose a higher tax rate on online casino activity in Sweden after AB Trav och Galopp (ATG) chief executive Hasse Lord Skarplöth urged policymakers to follow the UK model of differentiating casino from horse-racing betting. Skarplöth praised the UK government's approach as showing "courage" and "precision" in treating casino gaming as higher risk and therefore more heavily taxed.
Gustaf Hoffstedt, secretary general of BOS, countered that the proposal would amount to "self‑harm" for Sweden's regulated sector.
"Raising the tax on online casinos in a market with one of Europe’s largest black markets is not precision, it’s self‑harm. Higher taxes don’t reduce risk; they push players offshore, weaken consumer protection, and shrink the regulated ecosystem. The right policy levers are regulation and stronger channelisation, not punitive tax increases that widen the gap between licensed and unlicensed operators."
BOS pointed to recent channelisation figures to underline its concern. ATG’s own estimate for channelisation in Q3 ranged between 74 and 85 per cent – below the government’s 90 per cent target – while Spelinspektionen, the Swedish gambling regulator, put channelisation at about 85 per cent in 2024, down from 86 per cent in 2023. Hoffstedt warns that reducing the attractiveness of licensed providers will make it harder to steer customers into a supervised market.
The debate in Sweden mirrors a larger policy conversation played out in Westminster. In the UK’s Autumn Budget, Chancellor Rachel Reeves announced that Remote Gaming Duty on online casino play will rise from 21 per cent to 40 per cent from April 2026, while remote general betting duty is due to increase from 15 per cent to 25 per cent from April 2027. Horse racing betting has been explicitly exempted from the UK increases, a carve‑out that horseracing stakeholders welcomed.
Back in Sweden, the government raised gambling tax to 22 per cent across verticals in July 2024, a move ATG has criticised as harming the horse‑racing sector. ATG argues that the sport’s cultural role and its funding relationship with racing justify a preferential rate. Hoffstedt rejects that logic: he says horseracing betting already achieves very high channelisation – estimated at 98 to 99 per cent – and therefore could tolerate a higher rate without driving players to unlicensed operators. "If the goal is channelisation and safety, then increasing the gap between licensed and unlicensed operators is the opposite of responsible policy", Hoffstedt said.
More Regulation News
Regulation
AGCO Moves to Revoke Southside Johnny’s Liquor Licence After Stolen Stock Probe
Dec 10, 2025
Expert Take and Data
Hoffstedt also disputed the premise that online casino products inherently create more harm. He cited research and national monitoring that show no overall rise in gambling‑related harm since Sweden re‑regulated online casinos in January 2019. According to surveillance using the Problem Gambling Severity Index (PGSI), the share of the population scoring three or higher fell from 2.2 per cent in 2019 to 1.3 per cent in Q4 2024. "All forms of gambling appear equally harmless for those without risk", Hoffstedt said. "But all types of gambling appear to be dangerous for those who already have gambling problems, with the highest share of problem gamblers found within the lottery segment. That suggests targeted regulation and player protection measures, not blunt tax hikes, should be the priority."
Industry groups in the UK, including the Betting and Gaming Council, have also urged governments to reassess the revenue assumptions underpinning tax rises, arguing higher rates could underperform against forecasts if players migrate to unregulated sites. Swedish policymakers face a similar trade‑off: higher taxes can boost short‑term yields if channelisation holds, but they risk expanding the black market and undercutting consumer safeguards.
As debates continue in Stockholm and London, regulators and operators will be watching channelisation metrics closely. The policy choice ahead for Sweden is whether to prioritise revenue alignment with the UK model or to focus on bolstering the licensed market through regulation, enforcement and incentives for channelisation. The outcome will shape the industry's commercial landscape and the practical reach of consumer protection measures across 2026 and beyond.
RELATED TOPICS: Regulation
Latest News
Regulation
AGCO Moves to Revoke Southside Johnny’s Liquor Licence After Stolen Stock Probe
Dec 10, 2025
Business
1spin4win and SOFTSWISS Share What It Takes to Break into the Top Slot Rankings
Dec 09, 2025Most Read
UKGC Tightens Oversight of Adult Gaming Centres as Funding Boost Targets Illegal Gambling
Dec 04, 2025Bulgarian Parliament Rejects Proposal to Centralize Gambling Under State Control
Dec 04, 2025Phased Rise in Brazil’s Gaming Tax Set to Start in 2026 Under Senate Compromise
Dec 04, 2025Nevada Official: Steve Wynn Agreed to $10 Million Fine After Witness List Included Ex‑Wife
Dec 08, 2025Must Read
Interviews
Exclusive Interview: Levon Nikoghosyan Shares AffPapa Winning Formula for Successful iGaming Events
Dec 03, 2025
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for iGaming Association Rejects Higher Casino Tax Proposal in Sweden