Swedish online revenues up 7% in 2015
State-owned Svenska Spel says strong earnings report shows it's ready for re-regulation
Swedish online gaming revenues grew by 7% in 2015 with both licensed and unlicensed operators posting positive numbers, according to preliminary figures from the Swedish gaming regulator Lotteriinspektionen.
The online market was worth around SEK8bn (?650M) in 2015, with state-run operators accounting for 40% of that, after growing at a rate of 8%. Unlicensed platforms accounted for 60% of the online market, with a growth rate of 6%, the regulator estimated.
In total, online gambling made up just under half of the overall Swedish gaming market.
State-owned Svenska Spel, the largest operator in Sweden, posted a profit after financial items and tax of ?390m, up 0.9% from 2014. Its operating margin was 22.6%.
Digital revenue improved 11% to ?140m thanks to a 59% rise in mobile and tablet revenue. However, the firm’s share of the online market was down 2% to 20%.
“After an expected decline in revenue in 2014, when compulsory registration of gaming was introduced, we now see growth,” said Svenska Spel chief executive Lennart K?ll.
“Both revenues and earnings and profitability improved. Svenska Spel is well equipped for the upcoming deregulation of the gaming market,” he added.
In July last year, Svenska Spel posted promising first half profits, but said its bottom line was being undermined by unlicensed operators who were benefiting from the regulator’s refusal to licence online casino, which is reportedly the largest form of online gambling in Sweden.
Meanwhile, horseracing operator ATG posted online sales of SEK1.8bn (?120m) in 2015, an increase of 10%
The latest figures will increase pressure on the government to accelerate its planned re-regulation, which will open up Sweden to licensed foreign operators.
“The inquiry on shifting from a monopoly regulation to a licence system will continue,” Gustaf Hoffstedt, general secretary at the Association of Online Gambling Operators,” told eGaming Review. “It better, because if this one fails as the inquiries in the past, there won’t be much left to regulate. This is the last chance for Sweden,” he added.