Svenska Spel welcomes “negative impact” of responsible gambling measures
Sports and casino revenue for Q2 was down by 19 per cent.
Sweden.- The state-run gambling operator Svenska Spel has reported that its Q2 revenue was up by 1 per cent year-on-year from SEK 1,938m to SEK 1,963m (€186.5m). However, operating profit fell by 4 per cent to SEK 1,127m (€106.8m).
The slight increase in revenue was mainly due to the fact that casinos were closed due to Covid-19 countermeasures in 2021. Meanwhile, the drop in profit was mainly due to higher costs, including investment in product development and technology.
However, the company’s focus on responsible gambling initiatives also had a “negative impact on revenue”, it said.
Sport and online casino revenue was down 19 per cent year-on-year, partly due to strong figures last year during the UEFA Euro 2020 football tournament. The land-based Casino Cosmopol and Vegas venues did better, with revenue up 95 per cent since Casino Cosmopol venues were closed in the quarter last year.
Tur remained steady, and the company noted the record numbers achieved for its two draws per week for its Eurojackpot.
Svenska Spel president and CEO Patrik Hofbauer said: “We see a positive development in the share of healthy income as a result of our strengthened gaming responsibility measures. We continue to provide our customers with entertaining gaming experiences in a responsible way, as we want gaming to be a joy for everyone.”
Svenska Spel’s outlook
Looking ahead, Hofbauer predicted possible headwinds due to international financial uncertainty.
He said: “Higher prices are expected in the coming years. It will hit consumption, which is expected to decrease, and we will see a re-prioritization in consumers’ economies. How this will affect the gaming market and consumers’ entertainment wallets in the short and long term is uncertain.
“Despite this, growth is estimated at three per cent for 2022 and two per cent for 2023. Going forward, the trend will continue with online games, fast games and casino games.”
Svenska Spel expressed optimism about the impact of Sweden’s new tougher gaming legislation, which was submitted to parliament in May. The bill aims to introduce more consumer protections and measures against match-fixing and unlicensed betting from July next year.
Meanwhile, Ålands Penningautomatförening (Paf), the gambling operator owned by the regional government of the Åland islands, has proposed that Sweden ban gambling advertising and hike taxes on the industry.
A very different proposal is that of the right-of-centre Moderata Party. It says it will sell off Svenska Spel if it wins Sweden’s general election in September. It has submitted a provisional mandate to Sweden’s national legislature, the Riksdag, proposing the division and sale of the company.
