Calls for Privatisation of Svenska Spel Intensify
The debate over the state’s role in Sweden’s gambling market has reignited as Gustaf Hoffstedt, secretary general of the Sweden Trade Association for Online Gambling (BOS), urges the government to sell Svenska Spel. In an op-ed for Dagens Industri, Hoffstedt argued that privatising the state-owned gambling operator would enhance regulatory impartiality and foster fair competition.
Parallels with Other Privatisations
Svenska Spel currently maintains a monopoly in the lottery sector through its Tur business and operates a range of other gambling services, including sports betting and online gaming. The company also runs the Casino Cosmopol brand, with a single operational casino in Stockholm after closures in Gothenburg and Malmö earlier this year.
Hoffstedt drew comparisons to the government’s recent sale of the state-owned vehicle inspection company Bilprovningen to TÜV Rheinland. Sweden’s finance minister, Elisabeth Svantesson, had justified the sale by stating that the state should focus on regulation rather than ownership. Hoffstedt believes this rationale applies equally to Svenska Spel.
He stated:
“Bilprovningen and Svenska Spel belong to a handful of state holdings that are particularly unsuitable for the state to own, in that the state companies operate in a competitive market alongside several normal private companies, where the state has the role of regulating both its own company but also all others.”
Concerns About Market Fairness and Trust
Since the Swedish gambling market opened to competition in 2019, operators have voiced concerns about the perceived advantages Svenska Spel holds due to its lottery monopoly and state backing. Hoffstedt highlighted the potential conflict of interest in the state owning a company within a regulated sector. He noted:
“No matter how much responsibility is distributed among various functions and authorities within the state, such an arrangement is set up to erode trust in the state’s role as a neutral judge.”
He warned of reputational risks, adding:
“Every day the state is owner of Svenska Spel, the government is exposed to this risk.”
The Case for Immediate Action
Hoffstedt urged the government to act swiftly, suggesting that the sale of Bilprovningen demonstrates a readiness to move beyond rhetoric. He wrote:
“There is no reason to wait any longer with the privatisation of Svenska Spel. In fact, the state’s role as an impartial judge is probably even more important in the gambling market than in the car inspection industry.”
Hoffstedt also argued that proceeds from the sale could fund significant public investments, such as infrastructure development.
Financial Challenges and Performance
Svenska Spel’s Q3 results underscore challenges in the current gambling landscape. Revenue fell 9.3 per cent year-on-year to SEK1.78bn (€156.5m), affected by a gambling tax increase from 18 to 22 per cent in July.
While online gambling revenue rose by 2.3 per cent, offline gambling revenue declined 10.3 per cent, and bingo hall revenue fell 25.6 per cent.
Land-based casino revenue plummeted 76.3 per cent following the closure of two Casino Cosmopol venues.
Political Stance and Future Prospects
Leading Swedish political parties have previously supported calls to privatise Svenska Spel but have yet to take concrete steps.
Hoffstedt’s renewed advocacy seeks to turn this sentiment into action, presenting privatisation as not only a solution for market fairness but also an opportunity for strategic government investments.
Whether the government will heed this call remains uncertain, but the debate is likely to continue shaping Sweden’s gambling market landscape.
