AB Trav och Galopp (ATG), the prominent Swedish gambling operator, has announced the resignation of its CEO, Hasse Lord Skarplöth, amid a fiscal downturn in 2025. Peter Norman, the current Chair, has stepped in as interim CEO, while Lotta Nilsson, the Chief Financial Officer, has been appointed deputy CEO. The decision, reached through mutual agreement with the board, comes as ATG reports a decline in its financial performance, marking a challenging period for the company in a competitive market.
In its financial disclosure for 2025, ATG revealed a 2.2% decrease in net gaming revenue, amounting to SEK5.25 billion, with overall revenue decreasing by 3.6% to SEK5.97 billion. This financial setback was mirrored in the company’s operating and net profit figures. The downturn impacted all three of ATG’s core sectors, with horse race betting revenues dropping 1% to SEK3.84 billion, sports betting falling 2% to SEK764 million, and online casino revenues decreasing by 7% to SEK639 million. The majority of revenue, SEK4.80 billion, was generated via digital channels, while SEK448 million came from retail operations.
Adding to its domestic challenges, ATG is preparing to venture into the Finnish market through a joint venture with Suomen Hippos, which is set to launch in 2027. This move aims to diversify ATG’s market presence, leveraging its in-house gaming platform under the Hippos ATG brand, but it also underscores the need to navigate regulatory frameworks and market dynamics in a new jurisdiction.
The financial difficulties faced by ATG in 2025 are attributed to several factors, including a rise in Sweden’s gambling tax from 18% to 22% of gross gaming revenue in mid-2024, which affected profitability. Additionally, the absence of major international men’s football events further strained revenue generation, highlighting the vulnerabilities of operators reliant on specific sporting events for income.
Norman and Nilsson have noted the increasingly competitive landscape in Sweden, which poses continued risks for ATG. Despite these hurdles, they affirm the company’s commitment to maintaining stability and competitive edge in supporting Swedish trotting and galloping sports. The leadership remains focused on strategic initiatives that will ensure the company’s long-term resilience and contribution to the national sports ecosystem.
Former CEO Skarplöth’s proposal to reform Sweden’s gambling tax system, advocating for an exemption similar to the UK’s approach for horse racing, was met with skepticism within the industry. Gustaf Hoffstedt of the Swedish Trade Association for Online Gambling criticized the proposal, arguing that increasing taxes specifically on horse race betting would be more rational for channelization and consumer protection. Concerns about channelization persist, with estimates showing a decline in compliance rates, falling short of the government’s 90% target.
Looking ahead, ATG’s leadership transition and strategic shifts will be closely watched as the company navigates regulatory and competitive challenges. The focus will likely be on implementing changes that bolster ATG’s market position while addressing the regulatory environment’s demands. The execution of Skarplöth’s tax propositions remains uncertain, and its potential implications for the Swedish gambling market continue to be debated. The coming months will be critical for ATG as it seeks to stabilize its operations and leverage new opportunities in a dynamic industry landscape.
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