SBC News Voice of the Sports Betting Industry
Sweden’s AB Trav och Galopp (ATG), the operator of horse racing betting in the country, has signed a deal with one of Finland’s leading racing bodies ahead of gambling market regulation in the latter country.
The Swedish firm has partnered with Suomen Hippos, the Finnish Trotting Association, to launch a new joint gaming venture to target the anticipated multi-licence Finnish betting market expected to launch next year, legislative changes pending.
Ownership of the new firm will be split 50/50 between the two organisations, but the Finnish stakeholder will benefit from a 60% dividend while ATG will get the remaining 40%. The reasoning behind this is that the duo want to see the new company, a name for which has not yet been chosen, make a long-term contribution to Finnish horse racing.
“This is a big step for equestrian sports in Finland. Nordic cooperation in trotting is important and will become even more important in the future,” said Minna Mäenpää, CEO of Suomen Hippos.
“This new Finnish betting company gives us the best opportunity to actively influence the future of the horse industry in a responsible way. The fact that we also receive the majority of the dividend strengthens our ability to develop the sport.”
New era, new opportunities
Finland stands out as one of Europe’s last gambling monopolies, along with its neighbour Norway. Betting in the country is strictly limited to the state-run company of Veikkaus Oy, as well as the regional firm PAF which is active on the island of Åland.
However, policymakers and Veikkaus itself have become increasingly concerned about the low channelisation rates in Finland and the number of consumers accessing unlicensed offshore companies. This has prompted legislators to look at liberalising the market, a prospect even Veikkaus is vocally supportive of despite the competition this would bring.
In a major development last month, the government finally introduced legislation to the Finnish parliament which, if approved, could see a multi-licence system adopted in 2026. The most likely framework will see Veikkaus retain monopoly over lotteries and gaming, with private licences issued for sports betting companies.
ATG is clearly keen to get its foot in the door, and the company’s own experience of navigating a monopoly-to-multi-licence regulatory transition – which Sweden experienced in 2019 – may come in useful for its new Finnish partner.
It is worth noting that ATG had previously been in negotiations with Veikkaus itself around the creation of a new horse racing betting proposition for Finns. Negotiations abruptly ended in March, with Veikkaus stating that it was surprised by the development – the reason for this may now be clear.
“The reregulation is a big step forward for Finnish equestrian sports,” added Mikael Bäcke, CEO of ATG. “From our new betting company, just as much rights revenue goes back to the sport as from the state-owned betting company Veikkaus.”
