Sweden Takes a Step Back: Government Hands Over Control of ATG to New Independent Board
In a significant shift, the Swedish government has decided to lessen its grip on the racing monopoly, ATG (Aktiebolaget Trav och Galopp), by entering into a new agreement mandating a fully independent board of directors. This move, finalized with the collaboration of Svensk Travsport and Svensk Galopp—joint proprietors of ATG—was publicly announced on April 10.
Established in 1974, ATG arose in response to the financial turmoil affecting Sweden’s equestrian sports, particularly addressing the struggles faced by Svensk Travsport and Svensk Galopp. Initially, the partnership aimed to resolve these issues through a unified platform for horse betting, with profits designated to support trotting and galloping sports as well as the national foundation for the Swedish horse industry.
The recent pact signifies a notable reduction in state oversight. Under the old system, the government had the authority to appoint six out of eleven board members. Now, however, ATG will take the reins in selecting its governing body, with a mandate that independent members must hold a majority. Furthermore, amendments to the organization’s governing documents can be undertaken without needing governmental approval.
In addition to the governance changes, the agreement stipulates an increase in financial contributions from ATG to the national foundation supporting horse racing.
State Reduces Role in ATG Following Land-Based Casino Closure
Sweden’s government has characterized its reduced involvement with ATG as a logical progression in its efforts to refine the gambling landscape through effective regulation. This comes on the heels of a parliamentary decision, finalized on April 2, to discontinue land-based casino operations, marking the closure of the final state-run venue, Svenska Spel.
“The state’s previous level of involvement is no longer justifiable,” remarked Niklas Wykman, Sweden’s minister of financial markets. “With this new agreement, ATG assumes complete operational responsibility. This opens avenues for recruiting a board capable of propelling the organization forward, enhancing professionalism and bolstering Swedish equestrian sports for the future.”
Concerns Arise Over Remaining Government Influence
Gustaf Hoffstedt, the secretary general of Sweden’s online gambling trade association, expressed cautious optimism about the agreement in his remarks to iGB. Having long advocated for diminishing governmental oversight of gambling monopolies like ATG and Svenska Spel, Hoffstedt acknowledged that ATG’s governance structure was perplexing, given the government’s historically significant role in appointing a majority of board members for a private entity competing in a regulated market.
Hoffstedt pointed out the ambiguity surrounding whether the government was fully disengaging from ATG, emphasizing the need for transparency. He noted, “It remains unclear if the government is completely stepping away from ATG. If there are any enduring agreements between ATG and the state that confer advantages not available to other operators, those should also be eliminated.” He concluded that allowing ATG to operate independently, alongside its competitors under uniform regulations, would enhance the integrity of the betting sector.
ATG Seeks Tax Relief and Eyes Expansion into Finland
Despite experiencing growth over the previous year, ATG faces hurdles due to regulatory pressure and increased tax rates. CEO Hasse Lord Skarplöth has reiterated pleas to the government in February to consider lowering gambling taxation on betting operations, which spiked from 18% to 22% in July of the prior year.
In its financial report for the year ending December 31, 2024, ATG announced a revenue increase to SEK 6.19 billion (£459 million/€551 million/$577 million), marking a 2.5% rise from the previous year. Operating profit saw modest growth as well, reaching SEK 1.81 billion, while pre-tax profit also showed a slight increase.
Looking ahead, ATG is positioning itself for expansion into neighboring markets. In anticipation of Finnish gambling reforms, the organization has entered into a joint venture with the Finnish equestrian association, Suomen Hippos, aimed at launching an online gambling platform. Under the terms, both entities will share ownership equally, while profits are set to be distributed with a 60/40 split favoring Suomen Hippos.