Swedish ATG and Svenska Spel’s Q1 results raise questions
Svenska Spel and ATG, the two giants of the gambling industry in Sweden, have just released their Q1 results. While the results are not disastrous, they fall short of the anticipated performance. Does this signal a decline in Swedish interest in gambling, or have bettors simply turned to other (unregulated) platforms?
ATG reports a decline in horse betting
ATG, Sweden’s leading horse betting operator, delivered disappointing results. According to the published today, 24 April, the net gaming revenue decreased by 8% in the first quarter of 2025, dropping to SEK 1.2 billion. The main reason for the decline appears to be a drop in horse racing bets: the segment, which is central to the company’s business, experienced a 10% decrease compared to the same quarter in 2024.
“The weak economy, sharply increased gambling tax costs, and calendar effects have contributed to a challenging first quarter,” declared Lotta Nilsson Viitala, ATG’s Chief Financial Officer.
The CFO also pointed to the late Easter holiday, which disrupted the usually lucrative V75 period, and a lower frequency of jackpots as additional reasons behind the slump. Even though ATG noted a slight increase in customer numbers across all gaming verticals, these customers bet less per week, which diluted overall revenue growth.
Finnish trotting off the table: Veikkaus-ATG dispute
Recent developments could further dampen these results in Q2: a dispute between Finnish gaming giant Veikkaus and ATG regarding the renegotiation of a contract led to the termination of Finnish harness racing coverage in Sweden. As of 1 April 2025, Swedish horse racing enthusiasts can no longer place bets on Finnish races, a loss of revenue that will make it even more difficult for the company to improve its performance in the near future.
Svenska Spel and the last-standing casino
Svenska Spel, the state-owned gambling group, also faced a 4.1% decrease in net gaming revenue, down to SEK 1.876 billion, compared to SEK 1.956 billion in Q1 2024.
“This is primarily due to only one casino being open during the quarter, compared to three casinos being open for parts of the quarter last year,” explained the company in its , adding: “On 2 April, the Swedish Parliament decided on a legislative change which means that from the beginning of the year, state-owned land-based casinos will no longer be allowed to operate. Meaning that the last casino, Casino Cosmopol in Stockholm, will be closed down, and this part of Svenska Spel’s public mission will end in 2026.”
Swedish government’s regulatory approach to the gaming industry
As of 1 July 2024, despite protests from operators in the country, the gambling tax was raised from 18% to 22%. A decision that will enable the government to extract additional revenue from an industry that generates significant earnings.
On top of this increased tax rate, the Swedish government has implemented some of the strictest regulations in the industry. Its approach has been centred on protecting players and continuously requiring operators to improve their efforts in this area. According to Anna Johnson, President and CEO of Svenska Spel, the weak economic results are partly due to “strengthened responsible gaming measures.”
Despite economic results that fell short of expectations, ATG has demonstrated a clear understanding of government expectations and highlights its ongoing efforts in other areas. “Of the 226,000 Swedish customers who have completed the self-test, 89 percent are green in their gambling, and the proportion of green turnover is 82 percent,” the company proudly announced.
The question, however, remains: Are Swedish players reducing their gambling expenditure, or are they simply shifting away from state-regulated operators? The impact of recent changes on the channelization rate, closely monitored by the regulator, will likely to provide some answers.
