Swedish Operators Unite to Oppose Differentiated Gambling Taxes
Thirteen major gambling companies have jointly urged Sweden’s finance ministry to reject a plan to split gambling tax rates by vertical.
LISTEN TO THIS ARTICLE:Senior executives from 13 leading operators – coordinated by the Swedish Online Gambling Industry Association (BOS) – delivered a unified letter this week warning that a proposed tax reshuffle would harm regulated market channelization and consumer protection. The initiative under scrutiny, supported publicly by horse racing operator ATG, would cut taxation on horse betting while increasing levies on other products, notably online casino games.
Sweden currently charges 22% of gross gaming revenue (GGR) across all verticals. Under the ATG-backed proposal, horse betting would be taxed at 18%, with other segments taxed at 26% to offset the revenue impact. Proponents point to recent UK reforms as a model, where policymakers applied higher rates overall while making specific carve-outs for certain activities.
Industry leaders counter that the suggested split would upset the balance that keeps players within licensed operators. BOS estimates horse betting already achieves channelization rates of roughly 98-99%, while online casino channelization remains closer to 80% at best. Operators say increasing tax on weaker-channelized verticals risks shrinking margins, reducing consumer-facing offers such as bonuses and competitive odds, and ultimately driving players into unregulated offshore markets.
"If consumer protection is the real objective, it would make no sense to reward a segment that already has near-total channelization while penalising the verticals that still need support. Higher taxation on online casino will reduce operators' ability to offer safer, regulated alternatives and will simply hand market share to illegal operators who do not provide consumer safeguards or contribute tax revenue.
ATG has defended its plan as a targeted measure to reflect the particular economics of horse racing and to preserve funding for racing and associated welfare initiatives. "Our position is about sustainability for the sport and recognising that horse betting operates very differently from other gambling products", said an ATG spokesperson. "We believe a differentiated rate can be designed to protect both consumers and the industry long-term."
Critics within the sector, however, say ATG’s intervention looks self-interested and could distort competition. Several operators argue the proposal would create a structural advantage for horse-racing firms while leaving casino operators and bettors with fewer protections in practice.
Related: Sweden to Abolish Land-Based Casinos by Beginning of 2026
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Policymakers face a narrow trade-off: raising taxes to meet fiscal priorities versus preserving the regulated market’s attractiveness. Sweden has a stated channelization target of at least 90%; industry groups warn that abrupt tax reallocation risks reversing gains toward that goal. Regulators and finance ministry officials have not publicly committed to a position, and sources indicate the proposal is still under internal review.
Analysts say the debate taps broader European questions about how to tax digital betting fairly while keeping bettors inside licensed systems. The UK’s recent tax changes are frequently cited as an instructive precedent, though outcomes there have been mixed and remain the subject of ongoing review.
Parliamentary debate is expected before any legislative move. For now, operators are pressing a coordinated political and public campaign aimed at persuading lawmakers that stability, not vertical experimentation, is the safer route to protecting consumers and preserving tax receipts.
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