The Ministry of Finance of Sweden has been urged to reject a plan by Aktiebolaget Trav och Galopp (ATG) to introduce a “differentiated gambling tax scheme”. 

The plan was rejected by 13 of Sweden’s biggest gambling licences, who sent the letter to Finance Minister  Elisabeth Svantesson and Deputy Niklas Wykman under the banner of the Swedish Trade Association for Online Gambling (BOS).

BOS and its members have voiced fierce opposition to ATG’s proposal that horse betting should be taxed at 18%, with other gambling products, including online casino, raised to 26%.

Opposition brands ATG’s plan as economically unsound and damaging to consumer protection, warning that it would undermine the core goals of Sweden’s gambling policy.

ATG, the former state-controlled monopoly that still dominates the country’s horse racing industry, argues that betting on horses is vital for the financing of Swedish equine sports and should therefore benefit from a reduced rate. 

The company cited the UK Labour government’s recent tax reforms — which raised general gambling taxes but exempted horse racing — as a model “Sweden should follow.”

BOS’s response leaves no room for doubt. “Such a hypothetical initiative by Sweden would be inconsistent with the main purpose of our gambling policy,” the association wrote. 

“The government states this goal by saying: ‘The negative consequences of gambling should be reduced’ and ‘Gambling for money should be covered by strong consumer protection.’”

At the centre of BOS’s argument lies the question of channelisation — the share of gambling that takes place within Sweden’s licensed market. The trade body warned that the country’s overall channelisation rate has fallen well below its 90% target, currently hovering around 85%, with stark differences between product types.

While betting maintains a high channelisation rate of 92–96%, and horse betting reaches 98–99%, the online casino segment lags far behind at 72–82%, BOS noted. 

“The level of the tax rate is not the only aspect influencing whether consumers choose to play within the licensed market or outside it,” the letter continued. “But this is a critical variable, particularly for high-volume players, because the tax rate directly influences the price of the gambling product.”

BOS warns of wider consequences

In this context, BOS argued, ATG’s proposal would destabilise the regulated market, eroding consumer protections and undermining efforts to reduce gambling harm. 

“To lower the tax burden for horse betting — which has no problem with channelisation — at the expense of online casino, which faces major challenges, would be reckless,” the letter states.

BOS also rejected ATG’s cultural and economic argument for a lower horse-betting tax. “This may of course be true for the horse industry,” it said, “but that is not the purpose of Sweden’s gambling policy. The goal of the gambling policy is primarily the protection of the consumer.”

The letter further reminded the Ministry that ATG has already benefited from the 2019 re-regulation, which cut its tax burden from 35% to 22%. “The company has therefore already received a significant tax reduction with the reform,” BOS underlined.

Among the signatories are Stella David (CEO, Entain), Ian Ince (Chief Compliance Officer, Playtech), Pontus Lindwall (CEO, Betsson AB), and Francesco Postiglione (CEO, Casumo) — alongside other industry leaders from LeoVegas, Evoke, Paf, Glitnor, ComeOn, and Enlabs — together representing the vast majority of Sweden’s online gambling turnover and workforce.

In its closing remarks, BOS reaffirmed its position: “We therefore urge the government to refrain from differentiating the gambling tax. Even though it may appear tempting to advocate for an increase in the tax on horse betting, this is not something we support. When gambling tax is levied, we back Sweden’s position of one and the same level for all forms of gambling.”

BOS Secretary General, Gustaf Hoffstedt, said the association’s stance is about fairness and long-term stability: “Sweden needs to safeguard consumer protection through a level and competitive licensing system, not a one-sided split in the market,” he said.

“A differentiated tax would send the wrong signal — that Sweden’s gambling policy can be bent to protect one sector over another.”

The intervention comes as BOS prepares its members for a transitional 2026, a year that will bring major regulatory adjustments, including a nationwide ban on gambling with credit cards, enhanced enforcement powers for Spelinspektionen, the national gambling regulator, and updated licensing remits for advertising, responsible gaming, and data transparency – changes that have been approved and designed by Finance Deputy Niklas Wykman.

BOS warned that fragmenting the tax framework amid such sweeping reforms would inject unnecessary instability into a market still adapting to regulatory change.

“The focus must remain on unified, effective regulation that maximises channelisation and protects Swedish consumers,” Hoffstedt concluded.