Swedish government considers ATG ownership transfer

[Wolf32]

The Swedish government announced that control of Aktiebolaget Trav och Galopp (ATG) should be transferred to its owners.
As part of its plan to wind down state-owned land-based casinos, the Swedish government has proposed transferring control of the former horse race betting monopoly. Before market regulation in 2019, the government managed betting under its monopoly position.

The government now believes that ATG no longer justifies continued state control.

The Swedish Ministry of Finance mentioned:

The government therefore intends to review the agreement. The purpose of the review is to limit state control while ensuring long-term funding for the sports of trotting and galloping as well as [the Swedish Horse Industry Foundation’s operations.

The sport of trotting and galloping still has its main funding from ATG and HNS receives annual funds from the company.

ATG, owned by Svensk Travsport and Svensk Galopp, was established by the Swedish state in 1974 to address financial challenges in harness and traditional horse racing. The government proposed creating a unified company to manage horse racing betting, with surplus funds directed to support the sports.

An agreement was formed between the state, horse racing bodies, and ATG to outline responsibilities. However, a 2017 government investigation suggested that retaining extensive state control was unsuitable after the introduction of a competitive licensing model.

Currently, the state has significant influence, including appointing most of ATG’s board members, holding veto power over its articles of association, and overseeing share transfers. If the agreement between the state and ATG collapses, the operator must liquidate by law.

The agreement also includes provisions for racetrack management, animal welfare standards, and social responsibility. The government proposal follows a call by Svensk Travsport chair Anders Källström in November last year to resolve ATG’s structure by 2024.