ATG Gains Autonomy as Swedish Government Eases Oversight

The Swedish Government has agreed to reduce state control of the betting company Aktiebolaget Trav och Galopp (ATG).

The reduction in state control over the company has been described as a “natural continuation” of the 2019 gambling market reform. The 2019 reform saw Sweden transition from a state-owned horse racing monopoly model to an open, licensed market.

Key Changes in the ATG Agreement

The new agreement between the government and ATG includes the following changes:

• The state will no longer be responsible for appointing six of ATG’s eleven board members.
• ATG’s articles of association can be amended without state approval.
• The nomination committee must now follow guidelines requiring most ATG board members to be independent. 
• ATG will no longer be required to liquidate if there is no agreement with the state.
• The agreement is streamlined to focus on the financial model for the horse racing industry.

An additional complexity is added with regards to the relationship to the Swedish Horse Industry Foundation (HNS), the organization that works “with and for” the Swedish equine sector.

As a result of the renegotiated agreement, the payment amount to the HNS will be indexed for adjustments, and a donation agreement will be created to reinforce the foundation’s position and ensure a consistent flow of funding to improve the country’s equine ecosystem. 

ATG was established in 1974 to address the financial challenges facing harness and thoroughbred racing. 

The solution put forward by the state was to establish a joint betting company, whose surplus revenue would be allocated to the racing industry. As a result, ATG was granted exclusive rights to horse betting, As previously mentioned, ATG lost its monopoly in 2019 although the state retained significant control. 

“It’s no longer justified for the state to be involved to the extent it has been,” explained Niklas Wykman, Financial Markets Minister.”With the new agreement, the company assumes full responsibility of its operations.” 

He continued: “This allows for the recruitment of a board that can effectively develop the company, increase professionalism and strengthen Swedish horse sports for the future.” 

Continued Gambling Shake-Up in Sweden

The news of the state’s divestment from ATG comes less than a week after the Riksdag voted to discontinue brick-and-mortar casino gambling under the state’s exclusive license model. 

The change will see retail casino locations effectively outlawed in Sweden by 2026. 

Only Casino Cosompol in Stockholm remains, the last of four state-run casinos operated by the former monopoly Svenska Spel. Casinos in Sundsvall, Gothenburg, and Malmo have already been shuttered due to dwindling revenue and the company’s clear pivot to digital gambling channels.