ATG wants horseracing out of Sweden’s proposed gambling tax hikes

Swedish horse racing group Aktiebolaget Trav och Galopp (ATG) has expressed dissatisfaction with the government’s plans to increase gambling taxes. 

In a blog post, ATG CEO Hasse Lord Skarplöth criticised the decision to raise tax rates for operators from 18% to 22% of their total gross gambling revenue (GGR) from July onwards, calling it a ‘shock’. 

In his words, Skarplöth believes the new measures will inadvertently jeopardise the horse racing industry by putting betting on horses in the same bracket as casino games – essentially bringing the already struggling equestrian sport in Sweden to its knees. 

Looking at other EU markets, the CEO noted that only Cyprus, Malta and the Netherlands have a unified tax rate for all forms of gambling. Other European countries choose to tax igaming the highest so that ‘the most problematic game form can pay the most back to society’ – citing the vertical’s generally higher problem gambling rates. 

The ATG is now looking to use the example of neighbouring EU states as a lever to call for a differentiated gaming tax instead of the proposed general increase, demonstrating the advantages of meeting halfway with policymakers. 

Skarplöth further added that the proposal is already generating interest, stating: “The hope is now that our analysis will move legislators from insight to action.”

In wider matters related to Swedish horse racing, at the close of 2023, Anders Källström, Chairman of Svensk Travsport the majority owner of ATG (90% holding), demanded that the government address “the governance structure of ATG” as the totalizer and betting network of Swedish racetracks.

Despite its independent ownership, the governance of ATG is overseen by the Swedish government that oversees a contract between Svensk Travsport and minority-owner Svensk Galopp, and appoints board members of the totalizer.

While addressing Swedish racing stakeholders, Källström revealed that he had reached out to Niklas Wykman, the Minister for Financial Markets, who is responsible for overseeing gambling affairs, to request a review of ATG’s management as part of the government’s gambling reform agenda for 2024. 

As it stands, the Swedish government has outlined that it will settle the gambling industry’s tax deliberation by early 2024, in order to implement changes with new Gambling Act measures adopted on 1 April.