Swedish horse racing monopoly AB Trav och Galopp (ATG) enjoyed solid top and backside line development in Q2 however warned the authorities’s “illogical” playing tax hike can delight in a disproportionate influence on the operator.
On 1 July, heinous gaming income (GGR) tax for playing operators in Sweden elevated from 18% to 22%. The authorities estimates this hike will generate more than SEK500m (£37.4m/€43.9m/$forty eight.6m) in additional tax income each year.
Nonetheless, the decision has ended in criticism from exchange teams and operators alongside with ATG.
After publishing its outcomes for the three months ended 30 June, ATG reiterated its opposition to the tax hike. Chief govt Hasse Lord Skarplöth mentioned the elevated price would negatively influence the country’s horsing racing exchange.
“Based totally on ATG’s mission from the grunt – to be sure long-term development for the sport of trotting and galloping in Sweden – the tax amplify is, to put it mildly, illogical,” Skarplöth mentioned.
The tax will disproportionately influence ATG, Skarplöth explained. Of that SEK500m in additional tax income, he expects round SEK200m to attain abet from ATG.
“In varied words, it [is] a horse tax,” he mentioned, that approach the operator will contribute much less funding to Sweden’s racing sector.
“The horse tax will lead to an amplify in prices for ATG. This in turn affects the funds for our householders and the total Swedish horse exchange and outcomes in the erosion of ATG’s mission.”
ATG wished better tax for online casinos
Skarplöth went on to recount the Swedish authorities ought to easy as a replace delight in applied a better tax price to online casinos. ATG beforehand advocated keeping the 18% GGR tax on having a wager and racing whereas elevating the levy for online on line casino to 26%.
This, Skarplöth mentioned, would delight in generated more funds than the authorities’s amplify.
“The proposal would now not easiest mean a decrease tax burden for a sport currently struggling against elevated prices and high passion rates,” he mentioned. “It can maybe also add extra cash to the treasury than the authorities’s contain proposal.
“Add that we too would delight in better public health as online on line casino is the procure of playing that is most associated with playing complications.”
He pledged to proceed lobbying the authorities for a swap in ability.
How did ATG procure in Q2?
Skarplöth’s feedback attain in the wake of a definite Q2 for ATG. For the duration of the three months to 30 June, total income elevated 2.6% year-on-year to SEK1.57bn.
Of this, gain gaming income accounted for SEK1.39bn, a upward thrust of 3.3%. This came no topic a dip in horse racing having a wager income, which slipped 1.0% to SEK996m, mainly as a result of sooner running of the SpringRace match in Sweden.
Nonetheless, this decline turned into offset by development in totally different places. Sports actions having a wager gain gaming income turned into 15.6% better at SEK207m, helped by Euro 2024, which started in mid-June. Along with, on line casino income elevated by 16.6% to SEK183m in Q2.
When it comes to channels, online operations generated SEK1.26bn of all gain gaming income, a upward thrust of 7.2%. On the flip aspect, retail income turned into down 23.4% to SEK131m.
Receive profit edges up 4.7%
Running prices were a small of decrease year-on-year at SEK832m. This intended operating profit elevated 5.9% to SEK452m.
Profit sooner than tax turned into also 3.8% better at SEK460m in Q2. ATG paid SEK13m in tax and likewise well-known a SEK1m sure influence from translation variations, leaving a wholesome gain profit of SEK448m, up 4.7% from the outdated year.
File H1 for ATG
Searching at H1, success proper thru the hole two quarters ended in gain gaming income hitting a file SEK2.69bn, a upward thrust of 6.2%. Total income turned into up 5.6% to SEK3.07bn, with ATG seeing development in all exchange segments.
Running prices were marginally decrease at SEK1.65bn, with operating profit rising by 13.0% to SEK841m. Pre-tax profit topped SEK860m, a upward thrust of 12.6%.
ATG paid SEK26m in tax and accounted for a SEK1m loss from faraway places swap. As such, it ended H1 with a gain profit of SEK833m, up 13.2% year-on-year.
Source: iGamingBusiness
