Aktiebolaget Trav och Galopp (ATG), the former horse racing monopoly in Sweden, is expressing dissatisfaction with the government’s proposed tax hike. Hasse Lord Skarplöth, the CEO of ATG, stated that the company was taken aback by the proposal and is calling for a differentiated tax system that would protect the racing sector.
The Swedish government plans to raise the tax rate for operators from 18% to 22% of their GGR, with the measure set to go into effect on July 1, 2024. However, industry representatives believe that the tax hike would have negative ramifications.
ATG argues that the tax increase would inflict significant financial strain on the racing industry, potentially resulting in million-dollar losses annually. As a result, ATG is advocating for differentiated tax rates to provide some relief to the horse racing sector.
In a blog post, Skarplöth expressed his dismay and concerns regarding the proposal, highlighting the difficulties the racing industry is already facing and the additional burden the tax hike would impose.
Skarplöth proposed implementing differentiated tax rates, citing other European countries with higher iGaming tax rates due to high problem gambling rates within the vertical. He emphasized the potential benefits of differentiated gambling tax in Sweden and hopes that lawmakers will consider the proposal to alleviate the racing industry’s challenges.
ATG is engaging in discussions with politicians to address the issue. Skarplöth noted that political figures have shown an understanding of the industry’s struggles and the exacerbation that would result from increased tax rates, with some lawmakers expressing interest in the idea of differentiated tax rates.
Skarplöth is optimistic that these discussions will prompt politicians to take action in support of differentiated tax rates, ultimately safeguarding the racing industry from further financial hardship.