Title: New Horizons for Finnish Horse Racing: ATG and Suomen Hippos Join Forces
In an exciting development for Finland’s gambling landscape, the Swedish racing authority AB Trav och Galopp (ATG) has partnered with Suomen Hippos, the Finnish equestrian federation, to create a joint venture (JV) in the online gambling domain. This collaboration comes at a pivotal moment as Finland prepares to revamp its gambling regulations.
The newly formed Finnish sportsbook joint venture, which is yet to be named, aims to cater to the growing demands of sports and horse racing enthusiasts, as well as players interested in online gaming. The partnership will see both ATG and Suomen Hippos sharing equal ownership stakes, while the distribution of profits will favor the Finnish side, allotting 60% to Suomen Hippos and 40% to ATG.
This initiative aligns with Finland’s ongoing endeavor to modernize its gambling framework. Recently, discussions within the Finnish Parliament focused on a reform bill that is projected to be approved by summer 2024. If successful, this legislation will herald a new era in January 2027, allowing private companies to penetrate the Finnish online gambling sphere.
Though the state-owned Veikkaus will retain its monopoly on key areas like lotteries and physical gaming machines, the reform will grant private enterprises the freedom to operate online betting sites and casinos. Notably, horse racing betting was added to the bill last year, highlighting the growing importance of this sector.
Stationed in Helsinki, the joint venture aspires to invigorate the Finnish racing scene, with plans to reinvest up to 60% of its profits back into the industry. “Our new venture represents a significant opportunity to shape the future of equestrian sports in Finland responsibly,” stated Minna Mäenpää, CEO of Suomen Hippos.
Mikael Bäcke, who oversees ATG’s operations in Finland, emphasized the long-term impact of this investment. “The evolution of betting licenses will ensure that horse breeding and racing in Finland benefit from a more equitable revenue model, linking them to both Veikkaus and our new betting platform,” he noted.
With reforms set to usher in increased competition, Veikkaus will find itself vying with private operators, including this fresh joint venture. As part of the changes, the state-controlled enterprise will operate a business unit that competes directly with authorized private entities, while retaining exclusivity over retail slot machines and lottery operations.
Veikkaus has experienced a downward trend in revenues in recent years, with a report from early September 2023 revealing disappointing profit margins. Their 2024 full-year results indicated a significant decline in sales, down 7.3% to €956.2 million (approximately $1.02 billion).
Increasing competition from unauthorized online gaming venues poses a substantial threat, with estimates suggesting that illegal activities could account for about €550 million in domestic losses in 2024.
As Finland navigates this transitional period, the joint efforts of ATG and Suomen Hippos might just prove crucial in revitalizing not only the gambling industry but also the horse racing culture that holds a special place in the hearts of Finns.