Unlicensed Operation
Svenska Spel, Sweden's largest lottery company, has been fined 2 million Swedish Kronor (176,000 euros) by Spelinspektionen for providing gambling services without the necessary licenses. The violation involved relocating "Vegas" slot machines to two locations not covered by the license granted in 2018, leading to a formal warning and a financial penalty. Svenska Spel has ceased operations at unlicensed locations and has applied for the necessary license changes.
Financial Overview for Q2 2024
In the second quarter of 2024, Svenska Spel's net gambling revenue was 1.872 billion Swedish Kronor (164 million euros), a 5% decrease from the previous year's 1.967 billion Swedish Kronor (173 million euros). The company stated that the revenue rebound was primarily due to reduced operating costs following organizational restructuring at the beginning of the year, leading to a 17% increase in operating profit, reaching 640 million Swedish Kronor (56 million euros).
The company's online sales channels performed strongly, growing by 8% and accounting for 59% of total revenue. Meanwhile, net gambling revenue from sports and casino operations fell by 2%, while the Tur division responsible for lottery operations saw a 3% increase in revenue due to strong Eurojackpot performance.
Despite some successes, the closure of casinos in Malmö and Gothenburg had a negative impact on overall performance, with casino revenue plummeting by 72%.
Outlook
The new leader, Anna Johansson (as shown in the image above), who took office in June 2024, stated that despite external challenges, the company's transformation is yielding results. "We are now seeing the effects of Svenska Spel's restructuring, with reduced costs and improved profitability," she said. She also noted, "This creates space for future growth and sustainable investments, while our customer base continues to grow."
She expressed satisfaction with the company's positive impact on gambling, noting that more customers are able to control their gambling habits. Starting in August, Svenska Spel will begin reporting the proportion of 'sustainable revenue,' a key metric aimed at ensuring long-term business viability while promoting safe gambling practices.
