ATG Sweden Defies Revenue Dip: Efficiency Drives Half-Year Profits in 2026

The latest financial results for Swedish gambling giant Aktiebolaget Trav och Galopp (ATG) for the first half of 2026 illustrate a significant discrepancy between revenue trends and profitability. While total revenue for the first six months fell to SEK 2.9bn (approximately US$ 304.5m), representing a one percent decrease compared to the same period last year, the company surprisingly managed to increase its operating profit. This growth of SEK 16m to a total of SEK 687m highlights that internal cost-saving measures and process optimizations are yielding results, even as the market environment becomes more challenging.

The second quarter in particular did not go according to plan for the operator. After a start to the year described as stable, development in late spring and early summer fell short of expectations. While the company management is satisfied with the profit development, it remains critical of the stagnant or slightly declining net gaming revenue. The fact that profit margins are growing despite falling sales is a clear signal to competitors about the importance of strict cost management during times of increasing regulatory pressure.

Numbers and facts

A detailed look at ATG's segments shows a heterogeneous development. While the casino segment recorded a significant 15 percent increase compared to the previous year, the company's traditional pillars struggled with losses. Sports betting revenue fell by seven percent, and the largest segment, horse racing, recorded a four percent decline. This is particularly noteworthy as ATG is historically rooted in the Swedish trotting and galloping culture.

Total net gaming revenue (NGR) fell by two percent to SEK 2.5bn. A decisive factor for the financial burden was the increase in gambling tax in Sweden, which was raised from 18 to 22 percent in July 2024. Nevertheless, the customer base remains stable: with around 1.4 million active customers, the reach is on par with the previous year. The company's CEO, Hasse Lord Skarplöth, emphasized the importance of market leadership and commitment to the Swedish horse industry.

"We are not satisfied with the revenue development, but it is positive that despite lower net gaming revenue, we can improve the result. This in turn is a result of the efficiency work that we are conducting." - Lotta Nilsson, CFO at ATG

Background

ATG operates in a Swedish market characterized by state regulation and high taxation. The four percentage point increase in tax on gross gaming revenue (GGR) in 2024 has put noticeable pressure on the industry. ATG had warned early on that this could weaken the domestic horse industry, which benefits significantly from the company's revenue. To compensate for these effects, the group is increasingly focusing on digitalization and international expansion, such as the new "Hippos ATG" joint venture in Finland, which is being prepared for the market launch there in January 2027.

Why it matters for German players

For German players operating in the local regulated market, the developments in Sweden serve as an interesting case study. In Germany, the market is strictly controlled by the State Treaty on Gambling 2021 (GlüStV 2021) and the Joint Gambling Authority of the States (GGL). Similar to Sweden, there are strict tax regulations and stake limits of one euro per spin for online slots. The monthly deposit limit of 1,000 euros via the LUGAS system also ensures high player protection but simultaneously limits operator flexibility.

The fact that a large provider like ATG remains profitable despite regulatory hurdles offers hope that GGL-licensed providers in Germany can also operate stably in the long term. German customers should strictly ensure they only play with providers listed on the official GGL whitelist. Only there is it guaranteed that strict German requirements for player protection and fairness are met, whereas unlicensed providers from Malta or Curacao offer no legal protection in case of disputes.

What it means for GGL-licensed casinos

ATG's results show that cost efficiency and diversification beyond pure sports betting are essential. German online casinos must also prepare for rising operating costs due to compliance requirements. The success of the casino segment at ATG could be an indicator that virtual slot machines can drive growth even in strictly regulated markets, provided the offering remains attractive. For GGL-licensed operators, this means they must optimize their internal processes to remain competitive despite the high tax burden in Germany (5.3 percent on stakes for slots and poker).