ATG CEO blasts political inertia over Swedish gambling tax increase
Hasse Lord Skarplöth claims Sweden’s decision makers disagree with the tax increase that he has suggested could cripple an industry “already on its knees”
ATG CEO Hasse Lord Skarplöth has criticised politicians in Sweden for not taking a more active stance against the gambling tax hike in the country.
The tax increase came into effect on 1 July, which saw GGR tax increase four percentage points from 18% to 22%.
The Swedish government has estimated the tax hike could bolster state coffers significantly, bringing in SEK539m (£39.8m) more each year from 2025.
Conversely, the tax increase means the horseracing industry would miss out on more than SEK200m in funding from ATG, according to Skarplöth.
The CEO has suggested that Swedish politicians have privately spoken of their disagreement with the tax hike, and may intervene if the increase has negative ramifications.
However, despite these reported private concessions, the ATG CEO has argued the industry doesn’t have the luxury of time.
Skarplöth said: “The fact is that politicians we spoke to find it difficult to argue that an increase in the gambling tax, which directly affects ATG’s contribution to the horse[racing] industry, is unproblematic.
“On the contrary, they hasten to add ‘if the increase is too large and has negative consequences, we will have to reconsider’. But the industry is already on its knees and unfortunately does not have the margin to ‘wait and see’.”
ATG representatives attended Sweden’s annual political event Almedalen Week, hosting a panel to discuss the tax hike issue further.
Skarplöth continued: “Speaking of politicians, we were also asked why no politician agreed to participate in the panel. My honest answer is that I don’t know, because we’ve probably asked, but no one has picked up. And as always, whoever doesn’t have the answer starts speculating.
“Could it be that the question is uncomfortable? That it is difficult for a politician to defend how a supposed income justifies pulling the rug out for an entire industry?”
The ATG head further doubled down on his insistence the tax hike will serve to benefit the black market in the Nordic nation.
He said: “We see how unlicensed gambling is continuously increasing, and the unlicensed gambler does not bring any revenue to the state.
“The scissors thus risk cutting at both ends, the horses lose funding, and the state loses revenue. The unlicensed companies remain as winners,” Skarplöth concluded.
Following the introduction of the tax increase, prominent figures in the horseracing industry spoke out against the proposal as part of a organised open letter drive in major Swedish publications.
Skarplöth himself has previously suggested that the government may be open to amending the tax increase in the near future.