Recently, the UK government announced a differentiated adjustment plan for gambling taxes in its autumn budget, which has caused quite a stir in the Swedish gambling industry across the Atlantic. Hasse Lord Skarplöt, CEO of the Swedish horse racing monopoly operator ATG, publicly called on his government to learn from this "brave and wise" tax reform approach of the UK, and to stop taxing all forms of gambling "equally".
UK Plan: Risk-Based "Precise" Taxation
What exactly is the new policy of the UK? Simply put, from 2026 and 2027, the government will increase the general betting tax from 15% to 25%, but horse racing betting, self-service betting terminals, etc., are exempted. At the same time, the remote gaming duty (mainly targeting online casinos) will also be significantly increased from 21% to 40%.
Although this plan has been heavily criticized within the UK industry, Skarplöt greatly appreciates it. He believes that the UK's policy is "based on risk assessment and social benefits", reflecting political courage. He explained: "The UK understands that gambling policy cannot be handled with a 'big hammer'; it needs precision. The motivation is clear: horse racing is not only about gambling, it also supports the entire industry—from breeding, training, racecourses to employment and cultural heritage. Online casinos, on the other hand, do not. The UK has directed the tax burden towards the more problematic, socially less contributive fast online games. If the horse racing industry is heavily taxed, the government is 'biting its own tail'."
Swedish Dilemma: "One-Size-Fits-All" Tax Burden Impacts Horse Racing Industry
Skarplöt is so excited because Sweden is deeply troubled by the "one-size-fits-all" tax system. Last July, Sweden unified the gambling total revenue (GGR) tax from 18% to 22%, which he vehemently opposed, calling it a "horse tax". He warned that this tax increase has already reduced ATG's annual contribution to the horse racing industry by 200 million Swedish Krona (about 21.3 million US dollars), which is a huge impact on an industry that encompasses about 350,000 horses and supports nearly 40,000 jobs.
"The Swedish government faces the same choices as the UK," he warned, "either continue to pretend all forms of gambling are the same, or tax according to actual risks and benefits." His specific proposal is: to adjust the tax rate on horse racing betting back to 18% to protect consumers and revive industry confidence; meanwhile, the tax rate on online casinos could be increased to 26% as a "financial compensation", which he sees as both reasonable and responsible.
Reform Opportunity: The Call and Hope for Differentiated Taxation
Skarplöt's core argument is that statistical data show that online casino betting causes more harm than horse racing betting. Although he admits that the Swedish government has been reluctant to implement differential tax rates in the past, he holds "hope" for the future.
He cited examples that Sweden has already implemented differentiated tax rates on products such as alcohol and tobacco based on risk (such as alcohol concentration). "If the country itself acknowledges that different products have different risks, therefore they should be taxed differently, then it's hard to defend still implementing a uniform tax rate for the gambling industry," he pointed out.
Moreover, he believes that efforts to combat the unlicensed gambling market have been effective, and the presence of more licensed operators now provides an excellent opportunity and logic to implement differentiated tax rates. For in-depth analysis of global gambling regulations and policy dynamics, follow PASA's official website for more information.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel:https://t.me/pasa_news
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