Svenska Spel boosts payouts as profits edge up
Swedish operator receives government backing to increase pay outs as year-to-date profits rise 4%
Svenska Spel has boosted pay outs on fixed-odds sports betting in an attempt to stay competitive with foreign operators active in Sweden.
The operator received permission from the Swedish government to raise pay outs, having previously removed bonuses and discounts in an attempt to combat problem gambling in the nation.
Different odds scales will now be applied, however total reimbursement from games is still capped at 85% over a defined financial period.
“A reduction in our overall market share continues as we lose customers and revenue to foreign companies operating without permission,” Lennart Käll, Svenska Spel CEO, said.
Käll has previously spoken out against unlicensed operators in the past having called upon the Swedish government to take action against them last year after noting that its market share had continued to fall.
Svenska Spel’s market share is now estimated to be around 48%, falling 1% on last year’s figure with the nation expected to begin issuing online gambling licences after the country’s general elections next year.
The state-controlled gambling company has also said the higher pay out percentage will result in greater variety in sports betting, strengthening its overall offering.
The announcement comes as the operator recorded a 4.3% year-on-year increase in operating profit to SEK3.799 billion (£367m) for the nine-month period ending September 2013, despite gross gaming revenue (GGR) remaining largely flat.
GGR for the period stood at SEK7.132 billion (£690m), rising just 0.3% year-on-year.