In September, Sweden’s government (Regeringen) announced plans to increase the gambling tax rate in the country from 18% to 22% of gross gaming revenue (GGR). The proposed tax hike is expected to take effect on 1 July 2024. While Regeringen believes this tax increase could generate an additional SEK540.0m (£39.3m/€45.5m/$48.4m) in annual tax revenue, the proposal has faced strong opposition from industry players, including the ATG.
The ATG has voiced its concerns over Regeringen’s plans and suggested maintaining the current tax rate for horse and other sports betting while increasing taxes on online gaming. To support this proposition, the ATG has highlighted examples of other European countries with differentiated gambling taxes, urging Regeringen to reconsider its proposals.
Notably, the ATG is committed to combating illegal gambling in Sweden. Research conducted by the ATG reveals a significant rise in illegal gambling sites in the country since 2019 when legal betting was introduced. This surge in unlicensed gambling platforms has prompted the ATG to advocate for a differentiated tax system. In Q3 2023, regulated online gambling achieved channelisation rates between 70% and 82%, with online sports betting demonstrating a higher rate of 88%. However, the rate dropped to 74% for online casinos. The ATG estimates the value of the illegal market to range from SEK3.4bn to SEK6.7bn annually. Moreover, two groups, Infiniza Limited and North Point Management Ltd, accounted for 60% of illegal gambling visitor traffic in Q3. The ATG aims to address this issue moving forward.
Despite the challenges posed by the illegal gambling market, the ATG continues to thrive in the stable Swedish market. In Q3, gross gaming revenue from Swedish licence-holders remained steady at SEK6.7bn. The largest growth in turnover was witnessed in land-based casinos, experiencing a 30.5% increase year-on-year. As for the ATG, it enjoyed a highly successful quarter ending 30 September 2023, achieving double-digit growth in operating profit and a 4.5% rise in net gaming revenue to SEK1.35bn. This period marked the second-highest figure for the third quarter in the ATG’s history, signifying the company’s resilience despite the slowdown in the Swedish market during H1. Overall, the ATG recorded total revenue of SEK1.53bn, representing a 3.0% YoY increase. The group demonstrated an operating profit of SEK497m, marking a 13.7% YoY growth.
