ATG's Q3 Operating Profit Falls 10% as Its Swedish Business Shrinks and Only Denmark Grows

Sweden's racing-owned operator says casino grew 13% in the third quarter, but the growth came entirely from its Danish subsidiary: in Sweden, horse betting, sports betting and casino all earned less than a year ago. The money that funds Swedish trotting and gallop racing shrank with them.

• AB Trav och Galopp (ATG) reported third-quarter net gaming revenue of SEK1,247 million (approximately $125 million), down 4% from SEK1,296 million, and operating profit of SEK392 million, down 10% from SEK434 million, according to its interim report published on 23 October
• Group horse betting revenue fell 6% and sports betting 9%, while casino rose 13%; in Sweden alone all three fell, and net gaming revenue dropped 7% to SEK1,128 million
• The Danish subsidiary 25syv grew 45% to SEK119 million, and its casino revenue rose from SEK40 million to SEK69 million, more than the whole group's casino gain
• The parent company's result before transactions with its racing owners fell 10% to SEK505 million; acting chief executive Jörgen Forsberg says the higher gambling tax limits what ATG can give the sport
• Hippos ATG, its joint venture with Suomen Hippos, says it was granted a Finnish licence on 19 October for the market opening on 1 July 2027, after Wildz became the first operator to announce one

ATG's Revenue Keeps Falling as Its Swedish Business Shrinks

AB Trav och Galopp, owned by Svensk Travsport (91%) and Svensk Galopp (9%), reported group net gaming revenue of SEK1,247 million for July to September, down 3.8% year on year, and total revenue of SEK1,421 million, approximately $143 million, against SEK1,467 million, according to its interim report. Operating profit fell 9.7% to SEK392 million, approximately $39 million, and the operating margin narrowed to 28% from 30%.

By product, group horse betting revenue fell 6% to SEK902 million and sports betting 9% to SEK156 million, while casino rose 13% to SEK189 million. The quarter had as many Saturdays with V85 or V75, ATG's big pool games, as a year earlier and two more jackpots, the report notes, so the calendar did not work against it.

The split by market, in a note to the accounts, shows where the growth sits. Swedish net gaming revenue fell 7.1% to SEK1,128 million: horse betting fell to SEK869 million from SEK931 million, sports betting to SEK139 million from SEK156 million, and casino to SEK120 million from SEK127 million. 25syv, the Danish subsidiary that trades as Bet25, grew 45% in Swedish kronor to SEK119 million, with casino up from SEK40 million to SEK69 million. Swedish gross horse betting turnover fell 7% to SEK2,818 million.

For the nine months, net gaming revenue fell 3% to SEK3,763 million and operating profit 2% to SEK1,079 million. Gaming tax in the quarter was SEK309 million, against SEK324 million, and operating costs rose to SEK720 million from SEK709 million. Costs of an autumn reorganisation that led to redundancies will fall in the fourth quarter, ATG says. It also discloses a data breach at a subcontractor that exposed personal data, which it has reported to the authorities.

Less Money for the Sport That Owns It

All of ATG's surplus goes to horse racing: it says it financed its owners with about SEK2.3 billion in 2025, and its accounts record a SEK1,615 million group contribution to Svensk Travsport for that year. The parent company's result before transactions with owners, which adds back what ATG pays the sport for racing information, rights and sponsorship, fell 10% to SEK505 million in the quarter and 3% to SEK1,503 million for the nine months. The payments themselves were SEK118 million, against SEK121 million.

Forsberg, acting chief executive since March and also head of Svensk Travsport, wrote that the costs of keeping and training horses are hurting ownership and breeding, with falling numbers at every stage, which he called worrying for the whole industry. The raised gambling tax, up from 18% to 22% since 1 July 2024, limits its room to contribute, a point ATG keeps making to decision-makers. Lotta Nilsson, chief financial officer and deputy chief executive, said in the press release that profitability remained strong but the decline in horse and sports betting requires ATG to strengthen its offer and competitiveness.

On market share, ATG gives no figure. Forsberg wrote that it lost share in sports betting in the first half after a weak late winter, and that third-quarter market data is not yet available. On iGaming Times' calculation, ATG's Swedish net gaming revenue of SEK4,913 million in 2025 was about 17% of the SEK28.2 billion that Spelinspektionen, the Swedish Gambling Authority, records for the whole licensed market. The report links a fall in ATG's Net Promoter Score to minus 16, from plus 1 a year earlier, to dissatisfaction with V85, which it says players see as harder, more expensive and less attractive to small players than V75. V75 returns on 28 November; the report puts no revenue figure on the V85 effect.

Hippos ATG Oy, owned equally by ATG and the Finnish trotting association Suomen Hippos, said on 19 October that it had been granted a licence covering horse betting, sports betting and online casino, and that 60% of its profit will go to Finnish horse sport. iGaming Business reported that Finland's National Police Board had not yet confirmed any award. Anna Romboli, head of Svenska Spel's lottery arm Tur, takes over as chief executive in December.

ATG's Casino Story Is Really a Danish Story

ATG's release leads on casino growth of 13%. The note to the accounts shows that Danish casino revenue rose by SEK29 million while Swedish casino revenue fell by SEK7 million, so the group's entire casino gain, and then some, came from 25syv. In Sweden, which is 90% of group revenue, every vertical shrank. Compare Svenska Spel's third quarter, where Sport & Casino, competing in the same licensed market, grew 6%. The state operator's profit fell because it chose to spend more; ATG's fell mainly because it sold less.

The Tax Argument Is Getting Harder to Separate From the Product Argument

ATG has argued since the tax rise that it squeezes racing's funding, a case it pressed when 2025 results showed the same pressure. The tax is real: SEK309 million this quarter, against SEK392 million of operating profit. But the rate has been 22% since July 2024, so it does not explain why this quarter is weaker than the same quarter last year, and the report's own customer data points elsewhere: a sharp fall in satisfaction tied to a game change, lost sports betting share and Swedish casino in decline. Bringing back V75 is a concession to customers, and the fourth quarter will show whether it brings small players back. Finland could give ATG a second growth market outside Sweden from 2027, but it is a joint venture that sends 60% of its profit to Finnish horse sport, not to Swedish racing.

ATG remains profitable at a 28% margin, and its Danish arm is growing fast. The problem is at home, where every product line is shrinking and the money for Swedish racing shrinks with it.