This can be a really polar topic!
I know guys that have used ATF for years on their sleds. Nope, it's not recommended, but to be honest.. the chaincase is not very picky. As long as it's a thin oil (like ATF) and not thick like 90w, and changed regularly, the chaincase, chain, and sprockets will probably outlast the engine. If ATF can protect the sprockets and chain in my transfer case on my Duramax, it should be able to keep the chaincase happy. JMHO, mind you.
I even had a buddy that had a chaincase problem out on the snow and he lost all his fluid. We got him going using 2-stroke oil, as that was all we had in the truck. His intent was to change it out when he got back home, but he didn't get around to working on it. He left the 2-stroke oil in there for the remainder of the season! During the summer and after about 800 miles, he finally decided to get it repaired correctly. The chaincase was fine. The rest of the sled... well...
This has been a constant debate on a bunch of forums for a bunch of years (even here!) with no real "winner". I use Polaris Synthetic chaincase fluid. But if someone wants to use ATF, it's their sled, their cash. And the guys that I know that run it say that the inside of their chaincase is much cleaner than when they used chaincase fluid, so there is that. too.