Swedish gambling operator ATG delivered a less-than-stellar report card for the fiscal year 2025: net gambling revenue of 5.25 billion Swedish kronor, a decrease of 2.2%; net profit 1.24 billion kronor, a drop of 16.4%. The performance pressure directly triggered a management shake-up—CEO Hasse Lord Skarplöt and the board reached a consensus for his departure, with Chairman Peter Norman stepping in as interim CEO, and CFO Lotta Nelson promoted to Deputy CEO. Simply put, when revenue falls and profits decline, someone has to take the blame. The final straw breaking the performance may well have been the gambling tax increase from 18% to 22% in July 2024. Interested in the latest regulatory and financial dynamics of the European gambling market? PASA's official website keeps track continuously.
All sectors in the red: Horse racing stable, sports betting down, online casinos worst hit
ATG's three main business segments all declined during the fiscal year 2025:
Horse racing betting (core business): Revenue 3.84 billion kronor, a slight decrease of 1%, relatively resilient.
Sports betting: Revenue 764 million kronor, down 2%.
Online casinos: Revenue 639 million kronor, plummeting by 7%, becoming the biggest drag.
Of the total revenue, 4.8 billion kronor came from digital channels, 448 million kronor from retail stores. Operating profit fell to 1.54 billion kronor, down 14.8% year-on-year, with pre-tax profit sliding 16% to 1.57 billion kronor.
Increased tax burden: 22% tax rate directly "eats into" profits
In its annual report, ATG's management admitted facing a "more severe market environment" in 2025, with new competitors entering and the biggest impact coming from taxes—the gambling tax rate was raised from 18% to 22% in July 2024, directly eroding profits. Additionally, the absence of an international men's football championship also affected the heat of sports betting.
Former CEO Skarplöt had called for emulating the UK model by implementing tax relief for horse racing betting, but was rebuffed by Gustav Hofstedt, Secretary General of the Swedish Online Gambling Trade Association, as "self-harm to the market." Hofstedt believes that if taxes are to be increased, they should be imposed on online casinos rather than horse racing, to facilitate channelization rates.
Currently, the channelization rate for Swedish online gambling (the proportion of players betting on legal platforms) is estimated to be between 74%-85%, below the government's long-term target of 90%. High tax rates are pushing players towards unlicensed operators—this is a tough problem for both ATG and regulatory authorities.
Expansion into Finland imminent, can the new leadership turn the tide?
Despite domestic pressures, ATG is still advancing its international strategy. In April 2025, it established a 50/50 joint venture company Hippos ATG with the Finnish Horse Racing Association Suomen Hippos, planning to enter the Finnish market under the ATG brand by 2027, supported by ATG's self-developed platform.
Interim CEO Norman and Deputy CEO Nelson stated that the company ended 2025 "with a stable financial foundation, updated product lines, and a clear direction for development," and will continue to strengthen its long-term competitiveness, providing a stable engine for Swedish horse racing. Whether the new leadership can stabilize their footing amidst high tax burdens and competitive red oceans, 2026 will be a critical test.
————
This article is from "PASA-Global iGaming Leader," a gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
