Sweden’s leading betting operator, AB Trav och Galopp (ATG), has reported a notable dip in revenue for the first half of 2025. This financial setback stems from a decline in horse racing’s popularity, increased gambling taxes, and economic challenges. Despite these headwinds, ATG remains a cornerstone of Sweden’s gambling sector, with loyal customers and efforts to diversify into other betting categories such as sports and casino.
- Background: The Role of ATG and Horse Racing
- ATG’s Financial Performance: H1 2025
- Revenue and Profit Declines
- Horse Racing Revenue Trends
- Segment Performance: A Comparison
- Causes of Revenue Decline
- Higher Gambling Tax
- Economic and Consumer Spending Pressures
- Segment Diversification and Challenges
- Customer Base Stability Amid Challenges
- Conclusion
Background: The Role of ATG and Horse Racing
AB Trav och Galopp (ATG) has long held a pivotal role as Sweden’s premier betting operator, with horse racing serving as its main business segment. For decades, horse racing has not only been ATG’s revenue backbone but has also significantly contributed to funding Sweden’s broader horse industry and related activities. As a result, any drop in revenue directly affects Sweden’s horse racing ecosystem.
ATG’s Financial Performance: H1 2025
Revenue and Profit Declines
In the first half of 2025, ATG reported a 5% dip in net gaming revenue, landing at SEK 2.57 billion (€226 million). Overall revenue also declined, and net profit fell sharply by 22% to SEK 650 million (€57 million). The company acknowledged that its primary revenue driver, horse betting, experienced a significant downturn during this period.
Horse Racing Revenue Trends
Revenue from horse racing saw a notable 5% drop, totaling SEK 1.87 billion (€164 million), compared to SEK 1.96 billion (€173 million) in H1 2024. This decline reiterates the importance of horse racing as the core segment that drives both profitability and revenue streams. Economic and market challenges exacerbated its weakened performance.
Segment Performance: A Comparison
ATG’s diversified portfolio showed mixed results across different segments. While sports betting demonstrated modest growth, casino revenue dropped sharply alongside horse betting.
| Segment | H1 2024 Revenue (SEK, million) | H1 2025 Revenue (SEK, million) | Year-on-Year Change |
|---|---|---|---|
| Horse Betting | 1,964 | 1,869 | -5% |
| Sports Betting | 382 | 393 | +3% |
| Casino | 350 | 304 | -13% |
Causes of Revenue Decline
Higher Gambling Tax
One of the most significant headwinds came from a governmental regulatory change. In July 2024, Sweden increased its gambling tax from 18% to 22%. As a result, ATG’s operational costs surged, with taxes adding an extra SEK 105 million (€9 million) in expenses during H1 2025. ATG labeled this as a cornerstone reason for its reduced profitability.
Economic and Consumer Spending Pressures
The effects of general economic weakness in Sweden also became apparent. Reduced consumer spending led to lower revenues in ATG’s horse betting and casino segments, with customers trimming discretionary gambling expenses. Economic challenges disproportionately affected traditional horse racing, long thought to rely on higher-value wagers.
Segment Diversification and Challenges
- Sports Betting: Amid overall revenue declines, sports betting showed resilience, growing slightly by 3% to SEK 393 million (€34.5 million).
- Casino Revenue: The casino segment recorded a 13% drop, signaling that challenges stretched across multiple betting types.
Customer Base Stability Amid Challenges
Despite financial setbacks, ATG maintained a stable customer base. Active users over the past 12 months numbered 1.4 million, consistent with previous years. This stability reflects a loyal market base, even amidst revenue fluctuations and shifting betting patterns.
Conclusion
ATG’s financial performance for the first half of 2025 underscores substantial challenges stemming from a decline in horse racing revenue, heightened gambling taxes, and broader economic weakness. Horse racing remains the company’s primary revenue driver, and its drop raises critical questions about sustaining the industry’s financial health in a competitive and regulated environment. ATG’s efforts to diversify into sports betting and casino offerings will be key to mitigating future losses.
