The agreement follows a competitive tender process, with Kambi's track record of excellence in regulated markets, cutting-edge technology and powerful operator empowerment capabilities helping secure its selection.
The multi-year deal comes as Sweden prepares to adopt a new regulatory framework on 1 January 2019, one which will give ATG the ability to complement its horse racing product with a full sports betting offer for the first time.
Kambi believes the addition of its premium Sportsbook to ATG's popular horse racing and trotting product will deliver a market-leading experience to ATG's established customer base.
Confirmation of the deal comes after Kambi last month announced the two companies were taking part in final stage commercial discussions.
While the deal will have no impact on Kambi's 2018 revenues, the partnership is expected to have a moderate effect on income in 2019, but one which will grow in future years.
Kristian Nylen, Kambi Chief Executive Officer, said: "Since launching in 1974, ATG has become a leading brand within its home market of Sweden and is a company which has, over time, built a vast and loyal customer base. So as the operator prepares for its next phase of growth in a re-regulated Swedish market, Kambi is proud to have been chosen as ATG's multi-channel Sportsbook provider and we look forward to forming a strong partnership."