Sweden.- The Swedish Parliament is to evaluate a proposal to lower the country’s tax rate on gross gambling revenue following a proposal from Moderate Party MP Carl Nordblom. Gambling tax was increased from 18 to 22 per cent from July 1 in a bid to generate an extra SEK500m in annual tax revenue for the government.

Nordblom argues that rowing back on the tax hike could improve channelisation to licensed online gambling operators. The motion comes as the Swedish gambling regulator published its 2023 report, which estimates channelisation for last year to have been 77 per cent.

Published on October 2, Nordblom’s motion reads: “The majority of operatorshave warned that the degree of channelisation, the level of gambling that takes place in the Swedish licensed gaming market, is decreasing. The consequence of this is that Swedish players turn to foreign gambling companies without a Swedish gambling licence.”  

ATG has been particularly critical of the tax hike. Hasse Lord Skarplöth, the CEO of Sweden’s horse racing betting operator, described the hike as a “horse tax”, claiming that it would have a disproportionate impact on ATG’s operations and would negatively affect horse racing as a result. He said around SEK200m of the extra tax revenue would come from ATG.

He said: “Based on ATG’s mission from the state – to ensure long-term development for the sport of trotting and galloping in Sweden – the tax increase is, to put it mildly, illogical”.

He added: “The horse tax will lead to an increase in costs for ATG. This in turn affects the funds for our owners and the entire Swedish horse industry and leads to the erosion of ATG’s mission.”

ATG had argued that instead of increasing the tax rate on all gross gambling revenue to 22 per cent, the government should have introduced a differentiated tax rate for online casino gaming. It suggested increasing the tax on online casino gaming to 26 per cent and leaving the 18 per cent rate for betting. Skarplöth has said that he will continue to lobby for this change.