In a landmark ruling, Svenska Spel, a state-owned Swedish gambling company, has lost its appeal against Aktiebolaget Trav och Galopp (ATG) over the use of the phrase “Trav och Galopp” (Trot and Gallop) in their new racing product.
The Patent and Market Court of Appeal determined that Svenska Spel's usage infringed on ATG's company name rights. This decision follows a lengthy legal battle initiated by ATG in December 2020, which stemmed from a dispute between ATG CEO Hasse Lord Skarplöth and Svenska Spel CEO Patrik Hofbauer.
This loss compounds Svenska Spel's recent challenges, including the planned closure of their Casino Cosmopol venues in Gothenburg and Malmö to curb losses. The closures, which will affect approximately 200 jobs, signify the shrinking presence of land-based casinos in Sweden amid growing online gambling competition.
While Svenska Spel faces these setbacks, ATG reports a flourishing performance in the Swedish market. In their latest financial report, ATG celebrated a double-digit rise in operating profits, underscoring a stark contrast to Svenska Spel's current predicament.
Moreover, the Swedish gambling sector anticipates potential changes with the government's proposal to increase the gambling tax rate from 18% to 22%. This proposal, met with strong industry resistance, particularly from ATG, could impact the market dynamics. Skarplöth has advocated for a differentiated tax structure, suggesting a higher rate for online casinos while maintaining the current rate for sports betting.
