ATG’s Joint Venture with Suomen Hippos Aims to Revitalize Horse Racing in Finland
ATG has partnered with Suomen Hippos, Finland’s local horse racing authority, in a new joint venture set to leverage ATG’s advanced gaming technology while maintaining a distinct commercial identity separate from its Swedish operations, according to CEO Mikael Bäcke.
Bäcke emphasized the negative impact of state monopolies on horse racing betting, pointing to the examples of Veikkaus and Danske Spiel. “They have effectively marginalized the horse racing sector, leading to a decline not just in betting markets but also in the overall interest in horse racing among customers,” he noted. The current situation presents a unique opportunity for both ATG and Suomen Hippos to fill the existing gap in the Finnish market.
The joint venture, termed Hippos ATG, combines Suomen Hippos’ industry expertise with ATG’s extensive betting experience. Bäcke estimates that the potential market for horse racing betting in Finland could reach around €60 million.
This 50/50 partnership was announced earlier this year as both entities seek to navigate the regulated online gambling landscape in Finland. Bäcke, who previously headed ATG’s Danish subsidiary Bet25, brings a wealth of experience to the role.
Utilizing ATG’s Robust Platform
Bäcke revealed that while Hippos ATG will be commercially independent, it will be supported by ATG’s proprietary gaming platform, which is particularly adept at handling horse racing bets. “Our platform is second to none in Sweden when it comes to horse racing, making it an excellent resource for our operations,” he stated.
He further explained that centralizing development allows for greater efficiency and streamlined processes, avoiding the complications of managing multiple separate teams. While the primary focus will be on horse racing, Hippos ATG will also incorporate sports betting and online casino options as supplementary offerings.
Forming a Competent Team
Currently, the joint venture’s team consists of three key personnel, including recently appointed Antti Koivula as chief compliance officer and Joonas Saha as chief commercial officer. Bäcke is actively expanding the team to solidify their operations in Helsinki.
Despite operating as an equal partnership, ATG will retain 40% of the profits, with Suomen Hippos taking 60%. “This structure ensures that both parties are contributing their strongest assets to make the venture competitive, particularly Hippos’ deep roots in the local market and its strong relationships with the community of 200,000 horse racing fans,” Bäcke explained.
Hippos ATG is set to launch on the first day of Finland’s newly regulated online gaming market, anticipated to open in January 2027, thanks to timely progression in the associated regulatory processes.
In a related development, the Swedish government has reduced its oversight on ATG, ending its authority to appoint board members — previously responsible for six of eleven positions.
While ATG remains a dominant player in the Swedish horse racing market, its growth has encountered challenges, particularly following a tax increase on betting to 22% of gross gaming revenue in July 2024. CEO Hasse Lord Skarplöth has advocated for a reassessment of this tax structure to facilitate growth within the sector.