Debates over taxation in Sweden are expected to continue into 2026, as stakeholders remain in direct opposition, echoing the situation in the United Kingdom in 2025.
Aktiebolaget Trav och Galopp (ATG) has approached the Swedish Ministry of Finance, urging it to reject the proposal to introduce a “differentiated gambling tax scheme.”
The initiative was initially rejected by 13 of Sweden’s largest gambling operators after the Swedish Trade Association for Online Gambling (BOS) sent a letter to Finance Minister Elisabeth Svantesson and her deputy Niklas Wykman.
BOS strongly opposed ATG’s proposal to align horse betting taxation with other casino games at 26% (currently 18%), arguing that such changes could have a negative economic impact.
ATG highlighted the potential of the recent tax reforms by the UK Labour government, which raised general gambling taxes but exempted horse racing, calling this approach a model that “Sweden should follow.”
In response, BOS stated: “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 heart of BOS’s argument is the issue of the licensed market share — the portion of gambling conducted within Sweden’s legal market. The association warned that this figure is significantly below the 90% target, currently standing at around 85%, with noticeable differences across game types.
Sports betting maintains a high participation rate in the licensed market — 92–96%, horse betting reaches 98–99%, whereas the online casino segment lags behind at only 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.”
Don’t forget to subscribe to our Telegram channel!
