ATG eyes Finland JV to offer sports and igaming in newly regulated market
ATG’s Finland sportsbook JV, still to be named, will offer betting on sports and racing and igaming to players in the competitive Finnish gambling market. Under the JV, ATG and Suomen Hippos will maintain a 50/50 ownership split, but profits will be distributed 40% to ATG and 60% to Suomen Hippos.
The move follows Finland’s push for a liberalised online gambling market. Parliament debated Finland’s gambling reform bill last month, and it is expected to be approved in the summer. If passed, the bill will open up Finland’s online gambling market to private operators starting in January 2027.
Under the new model Veikkaus will maintain its monopoly over lotteries, scratchcards and physical gaming machines. Private operators will be allowed to offer online betting and casino, as well as horse racing, which was a late addition to the bill in November.
The JV will be headquartered in Helsinki, Finland and will aim to support the racing industry in Finland. Up to 60% of the profit made via the JV will be reinvested into the racing industry.
“We believe that our new joint Finnish company gives us the best opportunity to actively and responsibly influence the future of the horse industry,” Suomen Hippos CEO Minna Mäenpää said in a statement issued today (1 April).
“Nordic trotting cooperation is and will continue to be even more important in the future and this solution strengthens our ability to develop the sport and the operating conditions of the horse industry further.”
ATG and Suomen Hippos joint venture equestrian dividends
ATG’s Finnish operations manager, Mikael Bäcke, said the JV was an “important” investment for the group.
“Changes in the betting licensing market mean that Finnish horse breeding and trotting will in future receive an equal share of betting revenues from both Veikkaus and their new own betting company through data and image agreements,” Bäcke said.
Finland gambling reform boosts competition
Finland’s gambling reform will see Veikkaus come into direct competition with private operators, such as the fledgling sportsbook joint venture.
Gambling reforms will see Veikkaus granted a licence to run a separate business unit that will be in competition with private licensees. However, Veikkaus will retain its retail slots and lottery arm exclusivity.
The gambling monopoly has been in decline for the past few years. In its H1 2023 earnings released on 2 September, group managing director Olli Sarekoski noted a lower than anticipated profit margin.
In its 2024 full-year results (published on 5 March), Veikkaus posted a sales revenue decrease of 7.3% year-on-year to €956.2 million ($1.02 billion/£800.1 million).
A contributor to that decline is illegal sites and offshore operators. H2 Gambling Capital data estimated that domestic spend on illegal games was €550 million in 2024.