Betting Blues for Swedish Gaming Giants: Are Swedes Chasing Bets Elsewhere?
Swedish ATG and Svenska Spel's initial quarter earnings spark concerns
Let's dive into the recent results reported by Swedish gaming behemoths Svenska Spel and ATG, and consider the possibility that Swedish punters are feeding their gambling habit on unregulated platforms.
ATG's Slip in the Stretch
ATG, Sweden's leading horse racing betting operator, flags a disappointing beginning this year. As revealed in their Q1 report, gross gaming revenue dipped 8%, totalling SEK 1.2 billion. Horse racing bets bore the brunt of the downturn, slipping 10% compared to the same period in 2024.
Quoting Lotta Nilsson Viitala, ATG's CFO, the economy's malaise, escalating gaming tax costs, and peculiar calendar effects combined to create a challenging opening quarter. Easter's late arrival shook up the usually prosperous V75 period, and lower jackpot frequency sapped performance. Although the number of customers grew across all gaming verticals, the decrease in average weekly bet amounts wiped out potential revenue growth.
A Finnish Fiasco: Clash between Veikkaus and ATG
Things might get tougher in the second quarter. A quarrel over contract renegotiation between Finnish titan Veikkaus and ATG suspended coverage of Finnish harness racing in Sweden, effective April 1, 2025. Since then, Swedish fans have lost their betting advantage on races from Finland - a revenue loss that promises to make revitalization a struggle in the coming months.
Svenska Spel's Closing Act
Svenska Spel, Sweden's state gaming group, shares a similar tale of woe, reporting a 4.1% drop in gross gaming revenue from SEK 1.956 billion in Q1 2024 to SEK 1.876 billion in the same period of 2025. The company attributes the decline to only one casino being operational this quarter, in contrast to three partially running casinos the previous year. The Swedish Parliament's decision to close the last operating casino, Casino Cosmopol in Stockholm, means that Svenska Spel's gaming mission will conclude in 2026.
Swedish Government's Iron Fist
Regardless of operator protests, the government upped the gaming tax from 18% to 22%, effective July 1, 2024. This increase boosted the government's tax take from an already profitable sector. In addition, the Swedish government imposed stringent regulations with a focus on enhancing player protection and lifting operators' performance standards. For Anna Johnson, Svenska Spel's CEO, the subpar results are partially explained by "strengthened responsible gaming measures."
Even though the statistics seem disappointing, both ATG and Svenska Spel stand behind their initiatives and highlight progress in other areas. For instance, 89% of the 226,000 Swedish customers who completed the self-test displayed responsible gambling behavior. Moreover, a massive 82% of bets originated from responsible players.
Yet, a doubt lingers amid the numbers: are Swedes actually spending less on gambling, or have they migrated to platforms outside the regulatory net? Whether this trend adversely affects the channelling rate, which measures the use of regulated platforms, remains a question closely monitored by authorities.
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As you ponder the state of Swedish gaming, remember that tighter regulations for licensed operators, such as increased costs and credit card bans, might steer some players towards unregulated platforms. On the flip side, Sweden's concerted efforts to raise the channelization rate and enforce regulations may counter this trend.
- Despite challenging circumstances, ATG's CFO attributed the 8% drop in their Q1 gross gaming revenue to economic struggles, increased gaming tax costs, and unconventional calendar effects.
- The ongoing disagreement between Veikkaus and ATG has resulted in the suspension of Finnish harness racing coverage in Sweden, potentially leading to a decline in revenue in the second quarter.
- Svenska Spel, the state gaming group in Sweden, announced a 4.1% drop in gross gaming revenue for Q1 2025, primarily due to only one casino being operational compared to the previous year's three partially running casinos.
- Swedish authorities have imposed stricter regulations on gaming operators to improve player protection and enhance performance standards, which may have contributed to the subpar results reported by ATG and Svenska Spel.
- While the statistics suggest that responsible gambling behavior is increasing among Swedish customers, concerns remain that Swedes might be migrating to unregulated platforms, potentially affecting the channelling rate.
- With tighter regulations for licensed operators, such as increased costs and credit card bans, some players might turn to unregulated platforms, but Sweden's efforts to raise the channelization rate aim to counter this trend.
