BOS Head Calls for Svenska Spel Divestment to Protect Market Neutrality
Gustaf Hoffstedt, Secretary General of the Swedish Trade Association for Online Gambling (BOS), has once again brought up the issue of the Swedish government owning Svenska Spel, the state-run gambling company. Hoffstedt claims that state ownership in a competitive market means government can’t be neutral and creates a conflict of interest.
State Ownership Undermines Trust and Fairness
In an interview with Dagens industri, Hoffstedt said that the state can’t run a gambling company and regulate the industry at the same time. He pointed out that this means the state can’t be trusted as a neutral rule enforcer.
The BOS secretary general also questioned Svenska Spel’s track record, pointing out that the fines issued by Sweden’s gambling regulator, Spelinspektionen, was over 100 million SEK ($9.19 million) in 2023. He said that these fines undermines the credibility of state owned companies as role models for private competitors.
“Svenska Spel belong to a handful of state holdings that are particularly unsuitable for the state to own,” Hoffstedt stated.
Hoffstedt warned that a big scandal with Svenska Spel could damage the government’s reputation severely. He mentioned the recent irregularities in the Swedish gambling market, illegal advertising, as an example of vulnerabilities that could lead to big problems.
Privatization is the way to neutrality and growth
Hoffstedt thinks privatizing Svenska Spel would benefit both the government and the gambling industry.
He criticized Svenska Spel’s influence on public debate on gambling regulation, saying that the company sets the agenda for the government instead of following it.
Both the Moderate Party and the Sweden Democrats, part of the government, have earlier supported privatization of Svenska Spel.
Hoffstedt agrees with them, saying that divestment would free the government to focus on what they should do best: making laws and ensure compliance.
He also mentioned that the proceeds from the sale could be used to fund critical infrastructure and public services.
“There is no reason to wait any longer with the divestment of Svenska Spel. It would be a win-win for everyone,” Hoffstedt asserted.
Responsible gaming in a privatized market
While acknowledging Svenska Spel’s role in promoting responsible gaming, Hoffstedt said that private operators can do the same under a good regulatory framework.
He said that divestment would make the Swedish gambling industry more in line with free market principles while keeping consumer protection strong.
