ATG Opposes Swedish Tax Hike, Calls for Differentiated Tax Rates
Sweden’s former horse racing monopoly, Aktiebolaget Trav och Galopp (ATG), is speaking out against the country’s plans to increase the tax rate for operators. Chief Executive Officer Hasse Lord Skarplöth expressed shock at the proposal and called for differentiated tax rates to protect the racing sector.
The proposed tax hike would raise the rate for operators from 18% to 22% of their GGR, with an effective date of July 1, 2024. Industry representatives, including ATG, believe that this measure would have detrimental effects on the racing industry.
According to ATG, the tax hike would result in multi-million-dollar losses for the racing industry annually. As a result, the operator is advocating for differentiated tax rates that would provide relief to the horse racing sector.
In a blog post, Skarplöth emphasized the need for differentiated taxation. He pointed to other European countries that have higher iGaming tax rates due to high problem gambling rates in the vertical. Skarplöth also underscored that only Cyprus, Malta, and the Netherlands have equal tax rates across verticals.
Skarplöth outlined the potential benefits of implementing a differentiated gambling tax in Sweden and appealed to lawmakers to consider this approach in order to support the struggling racing industry.
ATG is actively engaging with politicians in Sweden to discuss the issue. Skarplöth noted that some political figures have shown an understanding of the challenges faced by the horse racing industry and the potential exacerbation of these issues with increased tax rates.
As a result of these discussions, some lawmakers have shown interest in the concept of differentiated tax rates. Skarplöth expressed hope that these conversations will prompt politicians to take action in support of the racing industry.