ATG reports falling revenues as higher gambling tax bites
Swedish betting operator ATG has reported a fall in both revenues and profits for the first half of 2025, blaming a tougher tax regime and weaker consumer spending.
Revenues down despite stable customer base
ATG said net gaming revenues for the second quarter fell 2% to 1,358 million SEK (120 million EUR), while total revenues were down 2% to 1,540 million SEK (136 million EUR).
For the first half of the year, net gaming revenues decreased 5% to 2,566 million SEK (226 million EUR). Net profit over the six months dropped 22% to 650 million SEK (57 million EUR).
ATG pointed to Sweden’s higher gambling tax, which rose from 18% to 22% on 1 July 2024. “The higher gambling tax alone increases costs by 105 million SEK (9 million EUR),” the company commented.
Despite the financial squeeze, customer loyalty has remained steady. “1.4 million customers have played with us during the past 12 months. A level that is stable compared with the same period last year,” ATG reported.
Sports betting grows, casino contracts
The company’s core horse betting segment fell 5% over the six months, reaching 1,869 million SEK (164 million EUR) compared with 1,964 million SEK (173 million EUR) last year. Sports betting, however, posted modest growth of 3% to 393 million SEK (35 million EUR), while casino revenues fell sharply by 13% to 304 million SEK (27 million EUR).
ATG noted that last year’s football European Championship had boosted sports betting revenues in the second quarter of 2024, making year-on-year comparisons weaker. On casino, it said: “Several big wins within ATG Casino Jackpot at the beginning of the year contributed to net gaming revenues decreasing by 13%”.
The report emphasised that ATG “is still the largest gambling company in sports betting on the Swedish licensed market”.
Leadership pledges tighter cost controls
Chief executive Hasse Lord Skarplöth admitted the environment remains challenging but said ATG would continue to focus on efficiency. “ATG has had an extra strong cost focus since autumn 2022 when it became clear that tougher times for household wallets were expected,” he said.
He added: “General cost control, consultant replacement and a restrained marketing budget have meant that ATG during the first half of 2025 has 50 million SEK (4 million EUR) lower total costs excluding gambling tax than in the first half of 2022.”
Looking ahead, he warned: “Since growth has been absent during the first half of 2025, ATG will further review costs to ensure good profitability going forward”.
Despite the cautious tone, Skarplöth underlined the company’s commitment to the sport it supports. “Together we will do everything to strengthen trotting and gallop sport and the entire Swedish horse industry”.
Major developments during the period
The half-year saw several significant events for ATG. In June, it launched a new joint venture in Finland with Suomen Hippos, the Finnish trotting federation. “The goal is to offer a world-class gaming experience on the Finnish market in connection with Finland deregulating its gambling market,” ATG stated.
The company also faced setbacks, including a court ruling in January against ATG in a trademark dispute. “ATG was ordered to compensate the opposing parties for legal costs. The cost of a total of 20 million SEK (2 million EUR) has burdened the company’s results,” the report confirmed.
In May, ATG was hit by a technical fault that “made it possible to play and win money without a stake on certain casino games. The games have been annulled… and affected customers have been contacted about repayment of incorrectly paid winnings”.
Another major shift came at board level. Since ATG’s formation in 1974, the Swedish state had held a majority on the company’s board. But in April, the government announced it would give up its seats. The new board, elected in May, now has seven members, four of whom – including the chairman – are independent.
ATG acknowledged that wider economic pressures remain a drag on performance. “Recession and high household costs, a persistent effect of previously high inflation, negatively affect the leisure wallet which in turn affects spending on gambling,” the report said.
But the company reiterated its long-term mission. “ATG’s mission is to be the engine of the horse industry and the compass of the gambling industry”.
