BOS: Swedish government must divest Svenska Spel’s betting and casino arms

Gustaf Hoffstedt, secretary general of Swedish trade body Branschföreningen för Onlinespel (BOS), has urged Sweden’s government to sell the betting and online casino arm of Svenska Spel.

Hoffstedt made the call in an op-ed for Swedish daily newspaper Dagens Nyheter, stating the BOS’ viewpoint is that Svenska Spel, which primarily offers lottery products under its Tur division, holds no remit to participate in commercial gambling while being government-owned.

Hoffstedt remarked that the government, elected last year, should finalise the country’s regulatory framework that requires a “fundamental distinction between being the legislator and rule setter”.

Svenska Spel, which is the leading operator in Sweden with around a third of the market, has been allowed to operate in both commercial and monopoly markets since 2019 when the country re-regulated gambling. Svenska Spel was formed in 1997 following the merger of three businesses.

However, Hoffstedt argued that the operator’s presence is detrimental to Sweden’s safer gambling objectives, as licensed operators need to spend more on marketing to compete against the state-owned firm.

He said: “No one who has followed developments in the Swedish gambling market can claim that there is too little competition between the 70 companies that operate in competitive gambling. Competition is fierce and would remain so even in the absence of the state as a commercial casino operator and bookmaker in betting.”

Hoffstedt drew comparisons between Svenska Spel to the sale of state-owned alcohol firm Vin & Sprit AB, encompassing Absolut, which was sold for SEK55bn in 2008 to Pernod Ricard, with the government at the time recognising its involvement in commercial operations was not in line with its objectives.

Hoffstedt also argued the Swedish centre-right coalition government, which was formed in November 2022, can’t ignore its demands for the break-up of Svenska Spel.

In July, the Moderate Party called for the divestment of the operator, with Hoffstedt now pushing for Prime Minister Ulf Kristersson to follow up on this proposal.

Hoffstedt remarked: “The Moderates have long advocated a divestment of Svenska Spel Sport & Casino, as have the Swedish Democrats. The voters who have given the centre-right parties the power to rule Sweden have very reasonable expectations that the government will now move from words to action.

“It is now high time that our own contemporary anomaly, the state role as casino operator and bookmaker, found an end,” he concluded.

Svenska Spel posted revenue of SEK1.9bn in its latest set of results (Q3 2022), down 0.9% year on year.