ATG has reported a decline in revenue for the first half of the year, while rising gambling taxes and weaker casino performance further weighing on results. 

The group said net gaming revenue came in at SEK 2.6bn (£190m), a 5% drop compared to the same period in 2024. Operating profit came in at SEK 671m, down SEK 170m, with margins falling from 27% to 23%.

Horseracing – ATG’s core business – also slipped 5%, while casino fell by 13%. Sports betting offered some relief, climbing 3% year-on-year. Overall revenue for the group was SEK 2.9bn, also down 5%, while the active customer base remained stable at around 1.4 million.

The group’s CFO Lotta Nilsson said the rise in gambling duty had been the single biggest factor behind the weaker numbers – with the impact of taxation a common theme throughout various European companies H1 reports this summer

“Reduced revenue and significantly increased costs for increased gaming tax are the strongest contributing factors to the deteriorated result,” Nilsson explained.

Costs rise and margins narrow

ATG’s tax bill reached SEK 627m in the first half of the year, up sharply from the previous year following Sweden’s decision to increase gambling duty from 18% to 22%. Nilsson said this alone added SEK 105m in extra costs.

Total expenses for the group stood at SEK 2.2bn, 1% higher than in 2024. Excluding tax, costs were actually reduced by SEK 47m which were attributed to efficiency drives. 

Nilsson noted that ATG is continuing to invest in product development despite tighter conditions. The company is also preparing for the launch of a multi-licence gaming market in neighbouring Finland, which could unlock a valuable new revenue stream.

“The way forward is about having growth in revenue while at the same time keeping costs tight to increase ATG’s profit,” she said, pointing to the upcoming launch of V85, a new Saturday horse racing game, as a key addition for later this year.

Responsible gaming and the wider market

ATG also underlined its focus on safer gambling, pointing out that more than 230,000 Swedish customers have now completed its voluntary self-test. The operator said 89% of those were rated as “green”, with 83% of total turnover falling into the same low-risk category.

Across Sweden, licensed operators are facing the challenge of higher betting duties, which came into force in mid-2024. 

Some in the industry feared the higher tax rate might encourage players to drift towards offshore operators. Even so, Sweden’s licensed market continues to be substantial and competitive. 

Online betting and casino products remain popular, and operators are working to keep pace by adding new games and tools designed to retain customers despite tighter margins.

A Finnish fortune for ATG?

As mentioned above, developments in neighbouring Finland are also catching the attention of many Swedish companies. Finland is set to abandon the monopoly held by state-owned Veikkaus Oy, ushering in a new open market era.

ATG’s new joint venture with Finland’s Hippos horseracing group, Hippos ATG Oy, made its first senior hires this week as it moves to become fully operational in the country.

Antti Koivula joins as Chief Compliance Officer, while Joonas Saha takes on the role of Chief Commercial Officer. Both started their positions this week, marking a key step for the business as it prepares for Finnish market launch.

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