Sweden to Reassess State Control Over Horse Racing Betting Monopoly
The Swedish government has announced plans to reevaluate its agreement with AB Trav och Galopp (ATG), the company managing horse racing betting in the country. The move is part of a broader strategy to limit state involvement in the gambling sector while securing sustainable funding for horse racing and related industries.
The Changing Role of ATG
The Swedish Ministry of Finance highlighted the need for this review, stating:
“The government therefore intends to review the agreement. The purpose of the review is to limit state control while ensuring long-term funding for the sports of trotting and galloping as well as [the Swedish Horse Industry Foundation’s (HNS)] operations. The sport of trotting and galloping still has its main funding from ATG and HNS receives annual funds from the company.”
ATG, originally established in 1974, was a joint initiative by the Swedish state and two major racing organizations, Svensk Travsport and Svensk Galopp.
The company was formed to address financial challenges in horse racing and ensure that surplus revenue supports the sports of trotting and galloping.
Historical Context and Current Challenges
Before the regulation of Sweden’s gambling market in 2019, ATG operated under a monopoly controlled by the state.
The current framework gives the government significant authority, including appointing the majority of ATG’s board members and maintaining a veto over its articles of association.
However, with the introduction of a competitive licensing model, a 2017 investigation raised concerns about the appropriateness of extensive state control in this new landscape.
If the agreement between the government and ATG were to collapse, Swedish law mandates that the operator must enter liquidation.
The agreement also addresses issues such as the management of racetracks, animal welfare standards, and other social responsibility measures.
Calls for Resolution
The government’s decision follows calls from Svensk Travsport chair Anders Källström to resolve ATG’s structural issues in 2024.
This proposal aligns with a broader government initiative to phase out state-owned land-based casinos and reduce state influence over the gambling sector.
