ATG CEO Hasse Lord Skarplöth has hit back at criticisms of his tax differentiation proposal, claiming they are “based on a picture of reality that is no longer correct”.
For the past two years, Skarplöth has called for a carve-out for horseracing in Swedish gambling tax policy, an opinion which he reiterated last month in the wake of the UK Autumn Budget.
The government opted to raise remote gaming duty from 21% to 40%, with remote sports betting duty also jumping to 25%. However, taxes on land-based betting and horseracing will remain the same.
Last week, the Swedish Trade Association for Online Gambling (BOS) called on the Swedish government to dismiss Skarplöth’s proposals.
Since July 2024, tax on gross gaming revenue (GGR) for all forms of gambling in Sweden has stood at 22%.
The ATG boss has suggested putting horseracing back to 18%.
BOS sent a letter, co-signed by the bosses of Entain, evoke, LeoVegas Group, Betsson and ComeOn Group, to the Swedish Ministry of Finance which warned that ATG’s suggestions could lead to worsened channelisation.
Now, Skarplöth has responded, claiming the channelisation argument holds less weight than it used to.
He said: “The problem is that the criticism is based on a picture of reality that is no longer correct.
“BOS believes that the channelisation rate should outweigh all other considerations and thus exclude differentiated tax rates. But the Gaming Act is designed to weigh several goals against each other.
“In addition, available data shows that channelisation for online casinos has improved since the gaming tax was increased; this does not mean that taxes alone can explain the development – but it does mean that the claim that higher taxes automatically worsen channelling no longer holds.
“When reality changes, the arguments must also do so.”
Skarplöth went on to assert that thousands of jobs and dozens of local economies and “regional structures” were dependent on horse betting.
The ATG CEO also reiterated his approval of UK policy, adding: “When the British government recently presented its budget, it increased the tax on online casinos and online betting from 21% to 40%, explicitly motivated by ‘higher harm’.
“At the same time, the taxation of horse betting was left unchanged. The tax burden was directed where the risk of gambling problems was considered to be greatest.
“In an ideal scenario, a lower gambling tax would have included all forms of gambling. However, such a reform appears to be politically unrealistic.
“Against this background, the proposal for differentiation should be seen as a pragmatic way of dealing with conflicting goals within the framework of current gambling policy.”
Responding to Skarplöth’s latest comments, BOS secretary general Gustaf Hoffstedt said that carve-outs for horseracing would go against EU law around selective tax breaks.
He remarked: “The uncomfortable but necessary conclusion for ATG is therefore clear. You cannot both maintain the current special status for horse betting and at the same time introduce a differentiated gambling tax for horseracing without coming into conflict with the EU’s state aid rules.
“If ATG wants a differentiated tax, the market must also be opened up so that more companies can compete on equal terms.”
ATG holds the monopoly on horse betting in Sweden. It was founded in 1974 to secure the long-term stability and development of the country’s horseracing industry.
The post ATG CEO claims channelisation argument on tax policy “no longer holds” first appeared on EGR Intel.
Hasse Lord Skarplöth doubles down on his call for a tax break on horse betting, as BOS argues carve-out would go against EU rules
The post ATG CEO claims channelisation argument on tax policy “no longer holds” first appeared on EGR Intel.