Concerns loom over ATG’s performance

Garance Limouzy October 2, 2024

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Concerns loom over ATG’s performance

In an analysis published in Travronden and relayed by the Swedish regulator, Rickard Hansson, columnist and reporter, sheds light on the challenges facing the Swedish horse betting operator ATG (Aktiebolaget Trav och Galopp). ATG’s performance in the third quarter of 2024, spanning July to September, is already raising concerns, especially following what was described as a “really tough” summer period. ATG is still to release its third-quarter report.

Established in 1974 to secure the future of Swedish horse racing, the company has since broadened its offerings to include different types of sports betting and casino games. Hansson notes that while it typically requires more than a single quarter’s data to draw conclusions, current indicators suggest that ATG may not fare well in its upcoming report. He recalls how the company benefited during the pandemic years of 2020-2021, complicating comparisons with prior performance metrics. Last year, ATG was buoyed by growth in sports and casino games, but this year, the situation appears more precarious.

Horse racing

Horse racing, ATG’s cornerstone offering, saw a decline of three percent in net gaming revenue, equating to a loss of 12 million euros. Hansson argues that the company is grappling with several factors, including criticism of jackpot funding, IT issues affecting major events like V75 (the largest horseracing pools in the world), and disappointing payout levels. This has, in his opinion, contributed to a decrease in interest, as evidenced by the absence of major jackpot wins over the past eight months.

Sports betting

The analysis further indicates that ATG’s growth in sports betting has slowed, a reversal after a period of rapid expansion in market share. Hansson predicts that the third quarter will likely be the weakest for horse betting in many years, noting that despite the absence of clear factors that could mitigate the downturn, the current trends are alarming.

Economic landscape

Hansson also explains that the economic landscape, influenced by global events like Russia’s invasion of Ukraine and a recent recession, has likely impacted consumer spending power. The recent increase in gaming taxes, effective July 1, is also projected to burden ATG with an additional 9 million euros in costs for 2024.

Despite the gloomy outlook, Hansson expresses cautious optimism regarding potential recovery in horse betting, citing that the previous year’s comparisons and the influx of jackpot funds could still yield growth. However, he warns that the reliance on these artificial boosts may be risky in the long run.