Svenska Spel revenue falls as Swedish gambling tax hike bites

The Swedish gambling operator’s Q3 revenue was down 9.2 per cent year-on-year.

Sweden.- Svenska Spel has reported revenue of SEK1.78bn (€156.5m) for Q3. That’s a drop of 9.3 per cent year-on-year and comes after Sweden increased gambling tax from 18 to 22 per cent of gross gambling revenue in July.

Online gambling revenue was up for the quarter ending September 30, rising 2.3 per cent, but offline gambling revenue fell by 10.3 per cent and bingo hall revenue fell by 25.6 per cent. Land-based casino revenue fell by 76.3 per cent due to the closure of two of the three Casino Cosmopol venues earlier in the year, leaving only the flagship Stockholm casino.

The Tur lottery division, which remains the biggest segment for Svenska Spel, saw revenue rise by 1 per cent, with the Eurojackpot still doing well. Sport and casino revenue fell by 12.4 per cent and revenue from Vegas gaming halls fell by 25.6 per cent. Operating profit was down 4.1 per cent and net profit 10.2 per cent.

Svenska Spel CEO and president Anna Johnson ascribed the downturn to the rise in gambling tax as well as enhanced responsible gambling measures, which include income checks for players making large deposits and more calls.

She said: “Our strengthened gambling responsibility also affects the group’s revenue negatively. It will continue to do so as we plan more measures going forward. This is a conscious priority because we want sustainable growth – a balance between growth and responsibility. We do that out of concern for our customers.”

The Swedish Parliament is to evaluate a proposal to lower the country’s tax rate on gross gambling revenue following a proposal from Moderate Party MP Carl Nordblom. Gambling tax was increased from 18 to 22 per cent from July 1 in a bid to generate an extra SEK500m in annual tax revenue for the government.

Nordblom argues that rowing back on the tax hike could improve channelisation to licensed online gambling operators. The motion comes as the Swedish gambling regulator published its 2023 report, which estimates channelisation for last year to have been 77 per cent.