Swedish Horseracing Faces Continued Decline Despite ATG Growth
Despite a 2% increase in net revenues to SEK 5,361m (€471.7m), Swedish horseracing continues to decline for the fourth consecutive year. This decline raises concerns about the long-term health of the sport.
Horseracing Income Decline
ATG’s horseracing income has steadily decreased year-over-year. The figures show a consistent downward trend: from SEK 4,200m in 2020 to SEK 3,894m in 2024. This represents a worrying pattern for the sport’s financial stability.
Totalizator Handle Decrease
ATG’s totalizator reports a fifth consecutive year of decline in racing handle. The handle has dropped from SEK 16,500m in FY 2020 to SEK 15,834m in FY 2024. This marks a total decline of 5% over the period.
Growth in Other Segments
Corporate growth has been fueled by ATG’s secondary segments. Sports betting revenue rose by 7% to SEK 778m, and online casino revenue increased by 8%, reaching SEK 689m. These segments are offsetting the decline in horseracing revenue.
Strategic Initiatives and Partnerships
In 2024, ATG upgraded its sportsbook capacity with Kambi Group and relaunched its online casino platform.
These initiatives introduced 600 new game titles. ATG also reported an increase in active customers to 1.4m, mainly due to enhancements in its online offering.
Financial Performance and Tax Implications
ATG reported operating profits of SEK 1,812m (€156m) in 2024, a 1% increase from 2023. Profit for the year also rose by 1% to SEK 1,480m.
However, ATG paid SEK 1,210m (€106.48m) in gambling tax, reflecting the Swedish government’s tax increase from 18% to 22% in July 2024.
Funding for Svensk Travsport
Despite setbacks, ATG increased its annual contribution to Svensk Travsport. The contribution rose to SEK 1,624m (€142.91m) in 2024, a 1.75% increase of SEK 28m (€2.46m).
This funding is crucial for supporting Swedish horseracing.
CEO’s Perspective
ATG CEO Hasse Lord Skarplöth stated:
“A turbulent environment has continued to affect ATG during the year. Our customers’ average spending has decreased, but we are pleased with customer growth to 1.4 million (1.3). This shows that our offering of exciting, fair, and smooth gaming experiences is strong. Net gaming revenue increased by 2 percent to SEK 5,361 million.”
Future Negotiations and Expansion
In 2025, ATG will negotiate with the Swedish government to reform its board structure. Racing stakeholders seek to end government involvement in ATG’s board.
ATG is also exploring expansion into Finland, partnering with Suomen Hippos should Finland liberalise its gambling market in 2026.