Swedish state-owned Svenska Spel fined by regulator, reports mixed Q2 performance

Garance Limouzy September 5, 2024

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Swedish state-owned Svenska Spel fined by regulator, reports mixed Q2 performance

Svenska Spel, Sweden’s state-owned gambling company, has reported its financial results for the second quarter of 2024, showing mixed performance amidst operational changes. While the company’s net gaming revenues slightly declined, profitability improved. These results come alongside a warning and a SEK 2 million (EUR 175.504) fine imposed by the Swedish Gambling Authority, Spelinspektionen, for operating without the proper licences.

Fine for unlicensed operations

Svenska Spel, Sweden’s largest gambling company, was fined SEK 2 million (EUR 176.000) by Spelinspektionen for providing gaming services without the necessary licenses. The breach involved moving “Vegas” slot machines to two locations not covered under the existing licences granted in 2018. This violation led to a formal warning and a monetary penalty. Svenska Spel has since ceased operations at the unlicensed locations and filed for the appropriate license amendments.

Financial overview, Q2 2024

For Q2 2024, Svenska Spel reported net gaming revenues of SEK 1.872 billion (EUR 164 million), down 5 percent from SEK 1.967 billion (EUR 173 million) in the same period last year. According to the company, the decrease in revenue was driven by a slowdown in casino operations and strengthened responsible gaming practices. However, the company’s operating profit grew by 17 percent, reaching SEK 640 million (EUR 56 million), thanks to reduced operating costs following organisational restructuring earlier in the year.

The company’s online sales channel showed robust growth, with an 8 percent increase, contributing 59 percent of total revenues. Meanwhile, net gaming revenues from the Sport & Casino business decreased by 2 percent, while the Tur division, which handles lottery operations, saw a 3 percent increase due to strong Eurojackpot performance.

Despite these operational successes, the closure of two casinos in Malm? and Gothenburg weighed on overall results, with casino revenues plunging by 72 percent.

CEO’s outlook

Anna Johnson (pictured above), who took over as CEO in June 2024, declared that despite external challenges, the company’s ongoing transformation is yielding results. “Now we are seeing the effects of Svenska Spel’s restructuring, with reduced costs and improved profitability,” said Johnson. “This creates room for future investments in growth and sustainability, while our customer base continues to grow.”

She also expressed satisfaction with the positive impact of the company’s focus on responsible gaming, as more customers are maintaining control over their gambling habits. Johnson announced that Svenska Spel would begin reporting the proportion of “sustainable revenues” starting in August, a key metric aimed at ensuring long-term business viability while promoting safe gambling practices.