Svenska Spel revenues up 9% despite unlicensed competition

Swedish state-owned operator Svenska Spel reported a 9% increase in online revenues for H1, but CEO Lennart Käll said competition from unlicensed operators had a “significant” impact on the firm’s bottom line.

The operator’s H1 online revenues were up 9% to SEK819m (£60.9m) while revenues from mobile across the six-month period increased 56% year-on-year.

But despite the growth Käll estimated that unregulated operators currently account for more than half the entire online market, aided by the regulator’s continued refusal to licence online casino, which Käll said is the largest form of online gambling in Sweden.

Swedish Spel said its online market share was slightly down at approximately 21.6%, although warned this would continue to decline if the market remains in its current state.

Sweden’s re-regulated framework is not expected to go live until 2018 or 2019, following a lengthy consultancy period, and Svenska Spel has been waiting for more than a year on an application made to the regulator to offer online casino, although there has been little indication this will be granted.

Sweden’s unusual marketing laws mean around 75% of total gambling marketing spend comes from firms based outside of Sweden.

Svenska Spel recently terminated a 20-year sponsorship agreement with the Swedish Hockey League.