Sweden’s ATG going its own way as government relinquishes control

The Swedish government has relaxed its control over AB Trav och Galopp (ATG), which operates horse racing betting in the country, and is still adjusting to market liberalisation.

Sweden’s Ministry of Finance announced the development on 10 April, stating that market conditions mean its tight ownership and control over ATG is no longer needed or appropriate since re-regulation in 2019.

ATG was established in 1974 as one of two state-owned operators, the other being Svenska Spel which operates the national lottery, sports betting and casinos – though the land-based elements of the latter have been gradually shut down over recent years.

Following the introduction of a mulit-licence market and the need of the monopoly in 2019, however, the government feels that the current market situation no longer justifies strict state control over ATG.

“It is no longer justified for the state to be involved in the way it has been in the past. With the new agreement, the company will have full responsibility for the operations,” said Minister of Financial Markets, Niklas Wykman.

“It provides the opportunity to recruit a board that can develop the company in a good way, increase professionalism and strengthen Swedish equestrian sports for the future.”

Can independence help ATG flourish?

In 2019, ATG found itself going up against new competitors in the form of Swedish-founded enterprises like LeoVegas, and its sportsbook expert, as well as Betsson, Bethard and Kindred Group. It also now faces international competition in the likes of William Hill and bet365, among others.

The government believes that by reducing state control ATG will be able to take advantage of greater independence to better support the development and professionalism of Swedish horse racing and other equestrian sports.

Under the terms of the state’s agreement with ATG ownership, the government will no longer be able to make nominations to its board of directors, the company’s articles of association can be changed without government approval, and the majority of board members will need to be independent.

The agreement comes at an interesting time for ATG, which is beginning to spread its wings internationally. The company recently partnered with Suomen Hippos, the Finnish Trotting Association, in a deal around horse racing in the latter country ahead of expected market reforms in 2026 which will see Finland drop its state betting monopoly – like Sweden did in 2019.

Back at home, however, ATG still has some reservations about the progress of Sweden’s regulated market. The operator published a recent report which put the Swedish channelisation rate at between 69%-82% in Q4 2024, a concern also shared by the Swedish Gambling Inspectorate, the Spelinspektionen.