ATG maintains profitability despite a 22% gambling tax increase in Sweden
Swedish betting company ATG has released its financial results for the third quarter of 2025, showing signs of stabilisation following a challenging first half of the year.
ATG Sweden posts profit of SEK 1.078 billion
Net gaming revenue reached SEK 3.862 billion between January and September. The increase in Sweden’s gambling tax from 18% to 22% had an impact on the operator’s profitability. Still, ATG’s operating profit for the quarter rose 9% to SEK 434 million. Between July and September 2025, the company reported net gaming revenue of SEK 1.296 billion, a slight 1% increase year over year. Total quarterly revenue amounted to SEK 1.467 billion, while profit for the period totalled SEK 428 million, according to ATG’s report.
Financial results reflect quarterly recovery
Operating cash flow stood at SEK 511 million. For the January–September period, net gaming revenue decreased by 3% to SEK 3.862 billion. Nonetheless, the third quarter marked a turning point with a positive trend. The operating margin for the quarter reached 30%, compared to 27% in the same period in 2024.
Operating profit for the nine months was SEK 1.105 billion, according to ATG. Gambling taxes totalled SEK 951 million between January and September, with the four-point increase resulting in an additional SEK 105 million expense during the first half of the year. Operating expenses fell by 3% to SEK 2.328 billion, though this figure included around SEK 20 million in costs related to a lost trademark dispute.
Horse racing and sports betting performance
Horse racing, ATG’s core business, remained stable, though below last year’s levels. During the third quarter, this segment increased by SEK 2 million year-on-year, accounting for 77% of net revenue in Sweden. Swedish horse racing betting volume totalled SEK 3.045 billion, while international volume reached SEK 859 million, according to ATG’s report.
Sports betting kept gaining momentum in the third quarter, rising 6% to reach SEK 171 million in net revenue from July to September. Over the first nine months of the year, the segment grew 4%, totalling SEK 564 million. In contrast, casino gaming lost ground, slipping 9% during the same period.
Digital channels generated SEK 1.187 billion in the third quarter, representing 92% of total revenue. Physical retail outlets contributed SEK 109 million. Danish subsidiary 25syv added SEK 82 million in net revenue during the quarter, with casino games accounting for 49% of gaming revenue in Denmark.
Expansion strategy in emerging markets
In June, ATG established a joint venture with Suomen Hippos in Finland called Hippos ATG OY. The partnership aims to position both organisations for the regulatory liberalisation of the Finnish market expected in January 2027. Currently, Finland operates under a state monopoly, but proposed legislation will allow licensed operators to enter the market.
Responsible gambling standards remain high
About 89% of ATG’s customers are considered “green” after finishing their self-assessment tests. These players were responsible for 83% of total betting activity in the third quarter. Since 2019, around 238,000 customers have completed a self-assessment, and by September 2025, ATG’s Net Promoter Score for the quarter was 1.
In October, the Swedish Gambling Authority and ATG’s disagreement was decided by the Administrative Court of Appeal. In contrast to the regulator’s first assertion, the court chose to cut the penalties in half to SEK 3 million while pointing out flaws in ATG’s anti-money laundering protocols. ATG is considering filing an appeal, according to its report.
This article was first published in Spanish on 5 November 2025.
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