Svenska Spel President and Chief Executive Partik Hofbauer has called for a ban on lottery betting in Sweden. He is particularly unhappy about the legality of the current business model here, describing it as “incomprehensible”.
In a statement on Svenska Spel‘s website, which was released on 27th November, Hofbauer argued that lottery operators’ business models would be prohibited in other industries. He also used Scandinavian neighbours Denmark as an example of a place where lottery betting is banned.
His comments on the current Swedish lottery landscape were:
“It’s incomprehensible that [lottery betting] may continue. I can’t think of another industry where it’s okay to use competing companies’ products as their own business.”
The Svenska Spel chief also mentioned that he hopes his concerns are addressed by the Swedish Gambling Market Investigation Board (Spelmarknadsutredningen). The body is currently looking at the state of Sweden’s re-regulated online gambling market, which went live at the start of 2019.
In his statement, Hofbauer also claimed that lottery betting is confusing some players. He said that they might not realise that they aren’t just playing the lottery in its own right. It was also perceived back that the Swedish Gaming Act is being violated by lottery brands.
Back in April, Svenska Spel stopped all of its casino advertising.
Much to think about
Throughout other verticals in Sweden, figures within the country have expressed their concerns about current ongoings. Earlier this month, the Swedish Trade Association for Online Gambling warned about the potential damage that regulatory micromanaging could cause. It was argued that increased intervention could serve to bolster the country’s black market, which at the moment makes up 13-15% of the country’s iGaming landscape.
Meanwhile, Kindred Group CEO Henrik Tjärnström said that B2B partners should also have to obtain local licences. He believed that implementing this change would “cull unlicensed operators” from the market.
Sweden’s online gambling revenue in Q3 2019 was its lowest since re-regulating. The total amount was 3.35 billion Swedish Krona (£268.6m), compared to 3.47bn SEK in the previous quarter.