Tax and economic headwinds have dragged behind year-end results for Swedish horse racing betting operator, AB Trav och Galopp (ATG).
The latest financial report from the company shows a YoY decrease across all key business segments – a combination of Sweden’s changing gambling landscape and national economic recovery throughout 2025.
Operating profit took the biggest hit, going down by 15% compared to FY24 results for a total of SEK 1.5bn (£123.1m). Net gaming revenue dropped by 2%, with SEK 5.2bn generated at the end of 2025. Operating margin was 26% compared to 29% in the year prior.
Betting on horse racing, ATG’s largest product, inched close to the baseline with only a 1% decrease compared to the year prior. Sports betting followed with a 2% drop, while casino was the hardest product hit with a 7% YoY decline.
Total revenue stood at SEK 6bn (down 4% YoY), total number of customers came in at 1.4 million, while operating expenses – excluding gambling tax – were down by 1% YoY to SEK 3.1bn.
Meanwhile, gambling tax paid for FY25 came in at SEK 1.3bn, which is a 7% increase from the amount paid in 2024.
Lotta Nilsson, CFO at ATG, commented: “2025 was a weaker year in terms of results. The prolonged recession pressured revenue while the increased gaming tax increased our costs.
“Both the lower revenues and the increased gambling tax directly affect the return to our owners and thus weaken the financing of horse racing. It is a development we are taking seriously.”
Gambling taxes in Sweden were increased in 2024, with the baseline going up from 18% to 22%. As a result, companies like ATG had to withstand the burden of increased taxation costs throughout 2025.
On top of that, Sweden entered a recession back in 2023, driven by high inflation, interest rates increasing, and growing unemployment. However, the economy has now stabilised, with experts predicting that GDP will grow by 2.6% in 2026.
Lastly, 2025 was significant for ATG in one other way – the government began loosening its control of the organisation in April. The Ministry of Finance stated at the time that state control over the operator was no longer approbate due to the changes in market conditions since the re-regulation of 2019.
ATG to change direction with new CEO
In light of the results, the ATG Board of Directors confirmed that Hasse Lord Skarplöth will be stepping down from his role as CEO. According to a company release, the decision was taken as a mutual agreement due to contrasting views about ATG’s direction going forward.
Hasse Lord Skarplöth leaves the company after more than 13 years at the helm, overseeing ATG’s rapid expansion across horse betting, sports betting, and iGaming.
His role will be filled on an interim basis by current Board Chairman Peter Norman, while Lotta Nilsson will move from CFO to Deputy CEO. The appointment of a permanent CEO is already underway.
Norman said: “Hasse has run the company in an exemplary manner that has also included international expansion. During this time, ATG has developed into a professional gaming company that rests on three pillars – horse betting, sports betting and casino.
“The board would like to thank Hasse for his great contributions to ATG over the years and wish him all the best in the future.”
Skarplöth also commented on his departure from ATG, adding: “It has been a fantastically rewarding time and I have appreciated every day I have gone to work. Together, with committed and loyal employees, we have had an unprecedented growth journey.
“I am proud of what we have achieved and of the position the company has today. I wish ATG all the best in the future with all my heart.”
With the situation in Sweden tenuous given high taxes and economic circumstances, salvation may lie beyond the country’s borders for ATG.
The company is a partner in Hippos ATG, a joint venture with Finland’s horse sports body Suomen Hippos created to target the forthcoming Finnish betting market, which is set to open in July 2027.