Swedish operator ATG has bemoaned the impact of an increase in gambling tax after a difficult first quarter of 2025, after its net gaming revenue (NGR) slipped 8% year on year (YoY).
The company posted NGR of SEK1.2bn (£93.9m) in the three-month period ending 31 March, for its horseracing, sports betting and online casino operations in Sweden and Denmark.
The operator said the decline was due to a combination of the new 22% tax rate, the recession in Sweden and “calendar effects”, which all resulted in a “challenging” first quarter.
ATG’s EBITDA fell from SEK468m to SEK334m while its operating profit also declined by 31% to SEK267m, a steep decrease from the SEK389m posted in 2024.
In turn, its operating margin fell to 19%, down from 26% in the same reporting period of last year.
Of the three verticals, sports betting was the only one to report growth, recording SEK198m in revenue, representing a 14% YoY climb.
In contrast, horseracing revenue slumped 10% to SEK867m. Despite the drop, the segment still contributed the lion’s share of ATG’s topline figure, generating 75% of revenue generated in Sweden.
It was a similar story for ATG’s igaming vertical, which posted a 13% YoY revenue dip, amounting to SEK143m. The decrease was due to several significant jackpot wins.
The division accounted for 9% of ATG’s Swedish revenue, though in Denmark, igaming proved to be the most dominant vertical and was behind 52% of revenue, compared to horseracing (28%) and sports betting (22%).
Active customers for the reporting period sat at 1.4 million.
As of 1 July 2024, Sweden’s gambling tax rate climbed four percentage points from 18% to 22%. The increase has resulted in ATG’s tax expenses rising by SEK51m.
ATG’s bossesd escribed the increase in tax as one of “the main reasons for the sharp decline in operating profit”.
In Q1 2025, ATG paid SEK303m in tax, as it gears up for the first full year of the new rate. That figure made up a significant chunk of the operator’s entire Q1 cost total of SEK1.1bn.
On the responsible gambling front, 226,000 ATG customers self-tested their gambling habits, the highest number in the last five quarters.
The percentage of ATG’s ‘green customers’, a title gained by measuring players’ gambling behaviours and self-test results, remained steady at 89%, while 1.6% of the operator’s customer base was contacted over concerns regarding ‘risky betting’.
Reflecting on the quarter, ATG CEO Hans Lord Skarplöth said: “We have many challenges ahead of us. But we also have something unique: a gaming company with a purpose that extends beyond numbers and balance sheets. We exist for Swedish trotting and galloping sports.
“It gives meaning to everything we do – especially in times when much else feels uncertain. That’s also what makes me feel hope, despite the challenges.
“We have a strong team, loyal customers and an important mission: to create revenue for Swedish trotting and galloping sports – and by extension for the entire Swedish horse industry.”
Shortly after Q1’s conclusion, the Swedish government confirmed it would reduce its influence over ATG after declaring it was “no longer justified”.
Since 1974, the Swedish government has maintained a majority on the operator’s board of directors, but that will come to an end before ATG’s next AGM.
As a result, the government will no longer be able to nominate members to the ATG board. The previous arrangement meant the government it could nominate six of the operator’s 11 board members.
The post ATG cites Swedish tax hike as main reason behind 8% net gaming revenue fall in Q1 first appeared on EGR Intel.
Horseracing operator sees operations hindered by four percentage point increase in gambling tax rate, with its igaming efforts in Sweden also suffer a notable decline
The post ATG cites Swedish tax hike as main reason behind 8% net gaming revenue fall in Q1 first appeared on EGR Intel.