ATG sees signs of recovery in tough economy

Swedish betting and gaming operator AB Trav och Galopp (ATG) has reported a 3% decline in total revenues for the first nine months of 2025, totaling approximately €382 million. The downturn reflects the broader impact of Sweden’s slowing economy, which has weighed heavily on consumer spending and discretionary entertainment.

Despite this reduction, ATG remains resilient. The company’s net gaming revenue (NGR)—a key indicator of operational performance—fell by a modest 3% year-on-year, reaching €339 million. The figures indicate that, while macroeconomic challenges persist, the operator continues to demonstrate financial discipline and operational stability.

ATG’s report highlights a mixed performance across its verticals:

• Horse betting revenue decreased by 3%, reflecting a decline in wagering activity among Swedish punters.
• Casino revenue fell more sharply, down 9%, due to increased competition and tighter consumer spending.
• Sports betting, however, provided a positive note, recording a 4% increase, largely driven by higher engagement around major sporting events.
• Overall, the group’s revenue contraction was matched by strict cost control measures that helped mitigate the financial impact.

Focus on operational efficiency and cost management

To counteract declining turnover, ATG implemented several efficiency measures throughout 2025. Operating expenses, excluding gambling tax, were reduced by approximately 3%, bringing total operating costs to about €200 million.

The company attributed this reduction to better procurement management, digital optimization, and continued focus on automation across administrative and marketing processes. These savings helped ATG sustain a solid operating profit of €96 million, corresponding to an operating margin of around 25%—a notable achievement given the economic environment.

However, the gambling tax burden remained significant at around €83 million, further constraining profit margins. Sweden’s regulated gaming market continues to impose high taxation levels, and ATG has repeatedly emphasized the importance of a balanced regulatory framework to ensure sustainable growth for licensed operators.

A year of challenges in the Swedish betting landscape

The first nine months of 2025 have been characterized by a combination of economic uncertainty, reduced consumer confidence, and intense competition among licensed betting operators. Inflationary pressures and rising household costs have reduced disposable income, leading to lower participation in gambling entertainment.

In addition, Sweden’s regulatory environment has remained stringent, with increasing oversight from Spelinspektionen, the national gambling authority. The government’s ongoing efforts to strengthen consumer protection and curb problem gambling have introduced new compliance obligations, particularly around marketing and player affordability checks.

While these measures serve important social goals, they have also added operational complexity for licensed operators such as ATG. Nonetheless, the company continues to express strong support for a well-regulated market that ensures player safety and fair competition.

Customer activity and market engagement

ATG reported that it had 1.3 million active customers during the January–September 2025 period, compared to 1.4 million a year earlier. The modest decline of roughly 7% is attributed mainly to reduced jackpot events in horse betting and overall economic caution among Swedish players.

Despite fewer large jackpot offerings, ATG observed encouraging signs of customer loyalty and steady engagement in its digital platforms. The operator’s focus on data-driven personalization, enhanced mobile functionality, and live-streaming services has helped maintain interest among its core audience.

The slight rebound in third-quarter NGR, which increased by 1% compared with the same quarter in 2024, underscores the company’s ability to adapt to shifting market conditions.

Commenting on the company’s financial position, Lotta Nilsson, CFO of ATG, stated:

“2025 has been a challenging year but for the third quarter we see that the group’s net gaming revenues stabilised, they increased by 1% compared with the same quarter previous year.”

Nilsson’s remarks reflect cautious optimism that ATG may be entering a phase of stabilization following a difficult start to the year.

Product innovation and digital transformation

Looking ahead, ATG continues to invest in product innovation and technology upgrades to sustain its competitiveness. One of the most anticipated developments is the upcoming launch of the V85 product, which aims to combine entertainment and data analytics to improve user engagement and attract a broader audience.

The company has emphasized that the V85 initiative is designed not only to enhance customer experience but also to strengthen cross-channel integration between online betting, mobile platforms, and retail outlets.

Digital transformation remains at the heart of ATG’s long-term growth strategy. The operator has made substantial investments in improving user interface design, betting algorithms, and responsible gaming tools, ensuring that its platforms meet both regulatory requirements and player expectations.

Responsible gaming and regulatory compliance

As one of Sweden’s most established gaming operators, ATG continues to maintain a strong commitment to responsible gambling and ethical business practices. The company has expanded its responsible gaming initiatives by introducing new tools for self-assessment, deposit limits, and voluntary exclusions.

These measures are aligned with the company’s broader mission to promote healthy gambling behavior and support individuals at risk of developing gaming-related harm.

ATG also actively collaborates with Spelinspektionen and other industry stakeholders to shape a safe and transparent betting environment. Its leadership has consistently advocated for a level playing field between licensed operators and offshore companies that operate outside Sweden’s regulatory framework.

The impact of macroeconomic trends

Sweden’s overall economic performance in 2025 has presented headwinds for most entertainment sectors, including gaming. Rising energy costs, interest rate hikes, and persistent inflation have curtailed consumer discretionary spending.

ATG’s results, while weaker than the previous year, demonstrate relative resilience within this context. The operator’s diversified product offering—spanning horse racing, casino, and sports betting—has enabled it to cushion the effects of the downturn and maintain a steady customer base.

Industry analysts note that ATG’s focus on operational efficiency, combined with prudent investment in innovation, has positioned the company well for a rebound once the macroeconomic environment improves.

Outlook for 2026 and beyond

While the company remains cautious, ATG’s management expresses measured optimism for 2026. The planned rollout of the V85 product and continued refinement of its digital infrastructure are expected to support gradual revenue recovery.

ATG also aims to expand its presence in complementary digital markets and strengthen its collaboration with sporting organizations to enhance brand visibility.

The company’s disciplined approach to cost management and its emphasis on responsible gambling are expected to remain core pillars of its strategy. If economic conditions stabilize and consumer confidence improves, ATG may achieve moderate growth in both customer activity and net gaming revenue over the coming year.

Conclusion

ATG’s latest financial update paints a picture of a company navigating a difficult yet manageable economic landscape. While revenue declined slightly due to a weaker Swedish economy and shifting consumer behavior, the operator has demonstrated solid financial control and operational resilience. Its disciplined cost management, commitment to responsible gaming, and investment in digital innovation have provided stability in a volatile market.

The modest rebound in third-quarter net gaming revenue, coupled with the anticipated launch of the V85 product, suggests that ATG is positioning itself for renewed growth in 2026. Though challenges remain, particularly in taxation and regulatory compliance, the company’s strategic approach appears prudent and sustainable. If economic conditions improve, ATG’s balanced model across horse racing, sports betting, and casino gaming may enable it to regain momentum and continue serving as a leading name in Sweden’s regulated gaming sector.

FAQs

What is ATG?
ATG, short for AB Trav och Galopp, is a Swedish gaming operator that offers horse betting, sports betting, and casino games under a regulated national license.

How did ATG perform financially in 2025?
ATG reported a 3% decline in total revenue to approximately €382 million for the first nine months of 2025 due to economic challenges in Sweden.

What contributed to the revenue decline?
Lower consumer spending, fewer jackpot events, and a slowdown in the Swedish economy were the main reasons for the decrease in revenues.

Which segment performed best for ATG?
Sports betting showed resilience, growing by 4% compared with the previous year, supported by major sporting events and online engagement.

How many customers does ATG currently have?
ATG recorded 1.3 million active customers during the first nine months of 2025, down slightly from 1.4 million in the same period last year.

What did CFO Lotta Nilsson say about the results?
She noted that despite a challenging year, ATG’s net gaming revenues stabilized in the third quarter, increasing by 1% compared to 2024.

What is the V85 product that ATG plans to launch?
The V85 is a new betting product designed to enhance player engagement and attract a wider audience through innovative digital features.

How is ATG addressing responsible gambling?
The company offers advanced self-exclusion tools, spending limits, and collaboration with regulators to ensure a safe gaming environment.

What are ATG’s main priorities for 2026?
ATG plans to focus on innovation, digital upgrades, cost efficiency, and sustainable growth while preparing for gradual market recovery.

What are the key risks ATG faces going forward?
Economic uncertainty, regulatory pressures, and competition from unlicensed operators remain the main challenges for ATG’s continued growth.