Swedish horse racing and betting operator AB Trav och Galopp (ATG) has entered into a significant partnership with Suomen Hippos, the governing body for Finnish trotting and horse breeding. The two entities have signed an agreement to establish a joint venture that will introduce a new betting company in Finland. This move aligns with Finland’s forthcoming gambling market reforms, which are set to take effect on January 1, 2027.

The joint venture, whose name is yet to be disclosed, will be headquartered in Helsinki and will focus on providing betting opportunities for horse racing, sports, and online casino gaming. The ownership of the company will be evenly split between ATG and Suomen Hippos, although profit distribution will see Suomen Hippos receiving a 60% share, while ATG will claim the remaining 40%.

Finland’s Regulatory Overhaul Paves the Way for New Entrants

Finland’s current gambling landscape operates under a state monopoly, with Veikkaus as the sole licensed operator. However, the government has opted to transition toward a licensing system akin to those in Sweden and Denmark, aiming to boost consumer protection, enhance market competition, and increase the channelization rate for legal gambling services.

Under the new regulatory framework, Veikkaus will retain exclusivity over lotteries, scratchcards, and physical slot machines. Private operators, including the new ATG-Suomen Hippos venture, will be permitted to offer online betting and casino games. The Finnish Parliament has been actively discussing these reforms, with final approval anticipated by the summer of 2025.

A Bold Move for ATG and Suomen Hippos

ATG sees this initiative as a major step forward in expanding its presence beyond Sweden. Mikael Bäcke, ATG’s head of Finnish operations, emphasized the strategic importance of the venture as reported by Keskisuomalainen, citing the company’s press release, “This is a significant and forward-thinking investment for ATG. By partnering with Suomen Hippos, we gain a strong and experienced ally in Finland. Together, we are building an appealing new betting company that benefits both customers and the horse racing industry.”

For Suomen Hippos, this partnership represents a milestone for Finnish horse racing. CEO Minna Mäenpää expressed optimism about the venture’s potential to strengthen the industry: “This is a crucial step for Finnish horse racing. Nordic collaboration in trotting is essential and will become even more critical in the future. Our new Finnish betting company provides the best opportunity to actively shape the future of the horse industry in a responsible manner.”

A key advantage of the partnership is its financial model, which prioritizes reinvesting in Finland’s horse racing sector. The new company’s revenue distribution ensures that 60% of profits flow directly back into the industry, mirroring the support previously provided by Veikkaus.

A New Era for Finnish Gambling

With the regulatory shift on the horizon, the Finnish gambling industry is on the brink of a transformation. ATG and Suomen Hippos are taking a proactive approach, ensuring they are well-positioned when the market liberalization takes effect. Their joint venture promises to bring innovation, responsible gaming practices, and increased financial support to Finland’s horse racing community.

As Finland prepares for this change, the new betting company stands poised to become a major player in the evolving landscape, offering consumers a fresh alternative while reinforcing the sustainability of the country’s horse racing industry.