Tensions rise in the Nordic horse betting scene as Finnish and Swedish operators clash over market control. The breakdown in negotiations between Veikkaus and ATG has sparked concerns about the future of horse racing bets in Finland.
Key Takeaways:
- Veikkaus accuses ATG of attempting to build a virtual monopoly in Finnish horse betting
- Disagreement centers on contract length and market changes expected in 2027
- Failure to reach an agreement could impact revenues for the horse racing industry
Veikkaus Voices Concerns Over ATG’s Market Strategy
Finland’s state-owned gambling operator Veikkaus has expressed alarm over what it perceives as an attempt by Swedish gaming company ATG to dominate the Finnish horse betting market. The concern stems from the recent collapse of negotiations between the two entities regarding coverage of harness racing events in Finland.
Jarkko Nordlund, director of betting and online casino at Veikkaus, stated in a blog post that the Finnish company’s offer for a new agreement was ‘millions of euros higher’ than the previous deal. Nordlund added, ‘We would even be willing to compensate ATG for losses due to the fact that our Finnish customers win more than Swedish players.’
Contract Length Dispute Amid Regulatory Changes
The core of the disagreement appears to be the contract duration. Veikkaus reportedly sought an agreement lasting until 2030, a timeframe ATG found ‘unreasonable’ given the impending changes to Finland’s gambling landscape. Patrik Brissman, ATG’s chief corporate communications officer, pointed out that the Finnish government plans to transition Veikkaus’ gambling monopoly into a multi-licensing system by 2027.
‘There are still many unanswered questions about what the market will look like,’ Brissman told InterGame. He further criticized Veikkaus’ approach, stating, ‘We believe this is a questionable course of action – especially coming from a state-owned monopoly as Veikkaus – and one that could, both in the short and long term, undermine revenues for the horse industry and interest not only in Finnish trotting but in Nordic trotting as a whole.’
Implications for the Horse Racing Industry
The standoff between Veikkaus and ATG raises concerns about the potential impact on the horse racing sector. Nordlund emphasized Veikkaus’ desire to remain a ‘significant player’ in horse betting, offering a wide range of events from various countries. However, he also noted that the company must now prepare for a scenario where cooperation with ATG may not be possible.
The situation highlights the delicate balance between maintaining a competitive market and ensuring the sustainability of the horse racing industry. As regulatory changes loom on the horizon, operators are jockeying for position in what promises to be a transformed betting landscape.
Looking Ahead
Despite the current impasse, Veikkaus maintains hope for a resolution. ‘Veikkaus’s intention is to find a long-term and mutual contractual solution with ATG for high-quality Finnish and Swedish horse betting sites,’ Nordlund stated. However, he also acknowledged the need to explore alternatives should an agreement prove elusive.
As the Nordic horse betting market faces this period of uncertainty, industry observers will be watching closely to see how the situation unfolds and what implications it may have for the broader gambling sector in the region.
