Swedish Gambling Executives Push Back Against Proposed Tax Hike Favoring Horse Racing

The Swedish Trade Association for Online Gambling (BOS) has formally appealed to the government to reject a proposal by state-owned operator ATG to raise the general gambling tax while reducing the tax burden on horse racing. The appeal comes in the form of a letter signed by 13 senior gambling company executives along with BOS Secretary General Gustaf Hoffstedt, underscoring growing industry concern over the potential impact of the measure on channelisation and consumer safety.

Industry warns of risks to channelisation and player protection

In the letter submitted today, BOS and the signatory executives argue that the level of gambling taxation is directly linked to channelisation—the share of consumers who choose to gamble within the licensed and regulated market. According to the association, Sweden is already facing challenges in keeping certain verticals within the legal framework, particularly online casino.

“Horse betting has a channelisation rate of between 98–99 percent. Online casino, according to the most optimistic estimates, has a channelisation rate of between 72–82 percent,” Hoffstedt stated. “The higher the tax, the greater the risk that the consumer will choose unlicensed gambling, where neither gambling tax nor consumer protection exists.”

The signatories stress that lowering taxes for a vertical with already high channelisation, such as horse betting, while increasing them for online casino—where channelisation remains comparatively weak—would be counterproductive. From their perspective, such a move could incentivize players to migrate to unlicensed operators, undermining Sweden’s regulatory objectives.

“To then lower the gambling tax for horse betting, which already has a very strong channelisation, and raise it for online casino, which has a very weak channelisation, would be completely incomprehensible,” Hoffstedt added. “At least for those who prioritize consumer protection.”

The appeal places consumer protection at the center of the debate, urging policymakers to consider the broader market dynamics before endorsing tax changes that could, according to the industry, weaken the effectiveness of Sweden’s licensed gambling system.