Legal Sport Betting

Date: 11.04.2025

by Jonasz Papuga

Swedish Government Signs New Agreement with ATG to Reduce State Control

The Swedish government has recently signed a new agreement with Svensk Travsport and Svensk Galopp, the owners of Aktiebolaget Trav och Galopp (ATG). The agreement significantly reduces state control over ATG, granting the company more independence.

ATG’s History and Government Involvement

ATG was founded in 1974 to address financial challenges in the trotting and horse racing sectors. The Swedish government initially signed an agreement with ATG, defining each party’s responsibilities. ATG had exclusive rights to offer betting on horse racing, directing surplus profits to the horse racing industry and the National Horse Industry Foundation (HNS). This setup continued for several decades until the re-regulation of the market in 2019, which removed ATG’s exclusive rights. Despite this, the state maintained control over the company.

Niklas Wykman, Minister for Financial Markets, commented on the agreement:

“It is no longer justified for the state to be involved in the way it has been since before. The new agreement gives the company full responsibility for its operations. It provides the opportunity to recruit a board that can develop the company in a good way, increase professionalism and strengthen Swedish equestrian sport for the future.”

Key Changes in the New Agreement

Under the revised agreement and ATG’s updated articles of association, the following changes will occur:

  • The state will no longer appoint six out of eleven board members.

  • ATG will be able to amend its articles of association without government approval.

  • The nomination committee will be required to ensure that the majority of board members are independent.

  • ATG is no longer required to go into liquidation if there is no agreement with the state.

  • The agreement has been streamlined to focus on ensuring the financing model for the horse racing industry.

  • A new provision will ensure that funds will be paid to the National Horse Industry Foundation (HNS), strengthening the foundation’s position.

These changes align with the re-regulation of Sweden’s gambling market. Since ATG no longer holds the unique position it once did, reducing government involvement is now appropriate. This move allows ATG to operate more autonomously while continuing to support the horse racing industry in Sweden.