Svenska Spel is Trying to Turn its Luck Around
Sweden’s gambling industry was just recently opened up to offshore companies. The country’s government-run gambling company, Svenska Spel, now claims that it’s struggling to compete. This company is working to reverse its current downward trend.
The government in Sweden can’t be happy with the recent revenue declines. Fortunately, it’s still earning money through the other licensed gambling companies now operating here. Let’s look at Svenska Spel’s strategy to turn things around.
Sweden’s Online Gambling Laws, Explained
Gambling has been legal in Sweden since the early 90s. At that time, the country only allowed traditional land-based casino gambling. In 2002, lawmakers here passed a bill that officially legalized online gambling, as well.
For many years, Sweden only allowed a state-run company called Svenska Spel to offer online gambling services in this country. All foreign gambling companies were banned from running here. This led to many complaints from officials within the EU, who called it a monopoly.
Finally, the government here changed its stance. In early 2019, lawmakers officially opened Sweden’s doors to foreign gambling sites. Before long, many of the top online gambling sites in Europe were licensed to operate here.
Of course, there are many regulations set on internet gambling companies in Sweden. Advertising is extremely limited. Companies caught breaking the rules are subject to massive fines.
It now appears that the foreign gambling sites are taking away from Svenska Spel’s revenue stream.
Svenska Spel Claims Results Are “Not What We’re Striving For”
It’s clear that Svenska Spel is not performing the way that it planned earlier this year. The company’s third-quarter gross gaming revenue declined to $478.9 million. This represents a 5% decrease compared to the same time period in 2018.
These revenue figures extend the company’s losing streak to five years. Patrik Hofbauer, president and CEO of this company, commented on the revenue losses to the media this week.
“Even though we have stabilised Svenska Spel’s operations after the changes at year-end, the result is not yet at the level we are striving for,” he said. Our digital business and our customer bases continue to develop positively, but revenue is adversely affected by increased competition and efforts in gaming responsibility.”
Just about all of the company’s gambling options are losing money right now. Svenska Spel is now working hard to turn things around.
Future of Sweden’s Gambling Industry
Based on the current trend, it looks like Svenska Spel is in trouble. The company is not the only gambling option in town anymore. Many of the biggest gambling companies in Europe are now operating here.
The government continues working to lower rates of gambling addiction. Sweden now has some of the of any European country. There’s a chance that if these regulations increase, many companies will leave the market entirely.
Svenska Spel is trying something new. This week, the company announced that it was launching a new online betting platform that allows retailers to offer sports betting odds through self-service betting terminals. Product manager Mathias Johansson claims it will allow bettors to “buy a game from any store, no matter where you are in the country.”
Time will tell how effective this new gambling platform is.
Sweden’s gambling industry is in an unusual position. On one hand, the government is happy to see more companies legally operating in the market. On the other hand, it’s worrisome that Svenska Spel is struggling to generate revenue.
Stay tuned for more Swedish gambling news over the next few months!
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