Swedish government loosens grip on ATG ownership
The Swedish government has made the agreement with Svensk Travsport and Svensk Galopp, both of which share ownership of ATG. The state announced on 10 April that the agreement reduces government control over ATG.
ATG was first founded in 1974 to oversee and correct financial problems faced by equestrian sports at the time. Svensk Travsport and Svensk Galopp were in financial difficulties and the state decided it would be best to form a joint venture for horse betting. Any profits were intended for trotting and galloping sports and the Swedish horse industry national foundation.
The new agreement sees the Swedish government give up part of its controlling powers over ATG. As a result, it will no longer nominate ATG board members. Previously it had the power to appoint six of the 11 board members.
Moving forward, the board’s nomination committee has been instructed that independent members should represent a majority. ATG’s articles of association can also be changed without the government’s sign-off.
Additionally, an increase in the amount ATG pays to the national foundation for the horse industry is being introduced.
State calls time on ATG as parliament votes to close land-based casinos
The state has argued that the reduction of its involvement in ATG is a “natural continuation” of its plans to reform the gambling market through regulation.
It follows a parliamentary vote on 2 April to abolish land-based casino gaming in the country as the final state-owned Svenska Spel venue will be shuttered shortly.
“It is no longer justified for the state to be involved in the way it has been in the past,” Sweden’s minister of financial markets Niklas Wykman said in a statement.
“With the new agreement, [ATG] will have full responsibility for the operations. It provides the opportunity to recruit a board that can develop the company in a good way, increase professionalism and strengthen Swedish equestrian sports for the future.”
Hoffstadt questions state’s remaining control in ATG
The secretary general of the Swedish trade association for online gambling, Gustaf Hoffstedt, welcomed the agreement in a statement to iGB. Hoffstedt has been campaigning for the government to relinquish control gambling monopolies ATG and Svenska Spel for a number of years.
Hoffstedt said that ATG had a “strange setup”, as the government appointed the majority of the board and chairperson for a private company in a competitive market.
He noted that while the government had said in its statement it was reducing control over ATG, it was not clear if it was leaving the company completely.
“It is more difficult to interpret whether the government is completely leaving the company. If there are any remaining special agreements between the government and ATG that do not apply to other gambling companies in the Swedish gambling market, it is of course our opinion that these should also be phased out,” Hoffstedt said.
“We believe that it will [benefit] the gambling market [if] ATG becomes a normal gambling company side by side with its competitors, all regulated by the same rules,” added Hoffstedt.
ATG calls for lower taxes, eyes Finnish market
ATG has grown in the last 12 months but not without impact from regulation and tax increases.
ATG CEO Hasse Lord Skarplöth urged the government once again in February to drop its gambling tax increase on betting.
Swedish operators faced an 18% to 22% tax increase on their gross gaming revenue in July last year.
In ATG’s full-year results for the 12 months to 31 December 2024, it reported revenue of SEK6.19 billion (£459 million/€551 million/$577 million), up 2.5% on the previous year. Net gaming revenue was largely flat, up 1.7% to SEK5.36 billion.
Operating profit grew 1.4% to SEK1.81 billion for the 12-month period. After also including financial items, pre-tax profit was up 1.8% to SEK1.87 billion.
Looking to expand into neighbouring markets, ATG and Finnish equestrian association Suomen Hippos formed an online gambling joint venture ahead of Finnish gambling reforms earlier this month.
The sportsbook will provide betting on sports, racing and igaming in the Finnish market. Under the venture, ATG and Suomen Hippos will hold a 50/50 ownership split. However, profits will be distributed 40% to ATG and 60% to Suomen Hippo.