Gaming & Lotteries business area

The Gaming & Lotteries business area accounts for a substantial share of Svenska Spel’s net gaming revenue. In 2010, this amounted to SEK 6,395 million (6,609), representing some 67 % of Svenska Spel’s total net gaming revenue. Net sales from gaming and other operations amounted to SEK 5,370 million (5,547). In 2010, operating profit was SEK 3,554 million (3,710).

The business area is responsible for marketing and developing gaming and lotteries at stores, arenas and at svenskaspel.se. Games sold via mobile phone, subscriptions, associations and corporate sales also represent a significant factor in this business. In addition, the business area includes Svenska Spel’s brand and sponsoring, which is described in the section entitled "Brand Management", and the section "Spelkort customer card". Business development, training and administration of Svenska Spel’s retailers are other features of this business area.

Successful activities contributed to earnings

In autumn 2010, a higher payback on the Stryktipset and Europatipset football coupons from 46 % to 65 % was introduced and was highly appreciated by players.

The superior offering, combined with better risk management, provided a substantial contribution to the Oddset’s net gaming revenues increasing in 2010. During the summer, a successful campaign was conducted for Oddset in connection with the football World Cup. During the most intensive period of the 2010 ice hockey season, Svenska Spel offered Oddset Powerplay and tracked the Elite Series with up to three gaming occasions per week. The number of gaming objects in the Oddset Lången offering was extended from 180 to 198 matches.

For 2010, Lotto’s "Dream Winnings" concept was also a major factor in the increase in the number game category. Advertising for Lotto has been awarded prizes on a number of occasions since the game was launched 30 years ago and during 2010 another diploma from the advertising industry’s "Guldägget" competition was added to the list of awards.

A contract was signed for the Keno draws with TV3, which took over from TV4.

The concept of a Triss lottery ticket as a present has had a favourable impact over the years and the traditional "Give Triss as a Christmas Present" campaign resulted in the highest weekly revenue for Triss tickets since 1997.

Gaming via stores

As of 31 December 2010, Svenska Spel had a nationwide distribution of games via 6,604 retailers (6,758) – retail stores, food stores, department stores, betting agents, tobacco shops, petrol stations and so forth. These accounted for SEK 5,152 million in net gaming revenue (5,313), a decline of 3.0 %. 2,674 retailers (2,751) carry the full range of Svenska Spel’s sports betting forms, number games and lotteries, of which 848 retailers (852) are located in rural areas or are the sole gaming retailer in small towns, and for whom Svenska Spel has a lower profitability requirement. 3,834 retailers sell only lottery tickets (3,860). In addition, Svenska Spel has 96 "checkout" retailers (147) at the ICA chain and Reitan (Pressbyrå and 7-Eleven), where Lotto and Joker tickets are sold at the checkout.

Responsible gaming in stores

The stores have an age limit of 18 for the purchase of lottery tickets and payment of winnings for all Svenska Spel’s gaming forms. The Swedish Gaming Board’s survey of responsible gaming information at 215 retailers during the second quarter of 2010 confirmed that 100 % provided information via displays on the minimum age limit of 18 and that 97 % had responsibility brochures clearly visible for the customers.

Over a number of years, Svenska Spel has checked retailer handling of the age limit by means of test purchases. The results have steadily improved and nowadays the retailers’ handling of identification checks is highly satisfactory across the board. A test purchase means that a person of legal age – who looks younger, and whose identification the retailer should check according to the rules – visits the retailer, buys a ticket and notes whether or not the retailer asks for identification.

The proportion of approved checks has increased each year and is now more than 86 % (80), which clearly shows that the retailers are managing their responsible gaming in a satisfactory manner.

A two-week ban is imposed on retailers who fail two consecutive tests, which affected 10 retailers (27) who failed to carry out the age-limit checks. An additional 12 retailers (5) lost their retailerships with Svenska Spel due to serious breach of contract, of which the reason in nine cases (2) was having illegal gaming machines on the premises.

Extensive training programmes

Svenska Spel works closely with retailers to enhance customer service in stores in the best way possible with modern information technology, for example. The digital information signs launched in 2008 are now installed at some 1,250 retailers (950). The in-store offer and technology are improved continuously.

The Gaming & Lotteries business area has a special section for training retailers, which includes the Retailer School with training premises at Svenska Spel’s Sundbyberg office. Retail personnel receive training in responsible gaming, gaming forms, retailer terminal know-how, the customer encounter and other skills necessary for in-store registration of games. The school also offers the open courses held as required in varying subjects throughout the country, which are open to retailers. In 2010, 387 people (336) attended the Retailer School and 1,872 (2,085) participated in other forms of training.

Retailers also have the svenskaspel.se/retailer website at their disposal, with access to training, information, campaign news, proprietary tools and so forth. In addition, a weekly newsletter, "Spelveckan", is sent to betting agents, while the monthly "Spelnytt" magazine is mailed to all retailers.

Svenska Spel has its own gaming shop known as "The Lab" adjacent to its office in Sundbyberg. As well as being a retail outlet and café, the Lab provides a test environment where Svenska Spel can test new games and concepts and have a direct dialogue with gaming customers and retail representatives.

Once annually, Svenska Spel arranges the much-appreciated "Ombudsgala" (Retailers’ Gala). Selected retailers are prized for exceptional input in a number of categories such as "Retailer of the Year", "Climber of the Year", "Sports Betting Retailer of the Year" and so forth. The gala event in 2010 was held at the Globen Arena in Stockholm, to which a few hundred retailers were invited to attend exhibitions, information, dinner and entertainment.

Internet gaming

Svenska Spel estimates that in 2010 the net gaming revenue via the Internet from the Swedish market totalled to some SEK 4,400 million (about 4,180), up by 5.2 % from 2009. On the Internet, svenskaspel.se has a market share of approximately 27 % (29).

Net gaming revenue at svenskaspel.se in 2010 continued to decline, dipping to SEK 1,152 million (1,221). This is partly because foreign competitors on the Internet can offer better terms and market their products in a manner that breaches Swedish legislation, and partly because Svenska Spel’s responsible gaming programmes – such as the obligatory weekly

budget when transferring funds to a gaming account – have a tendency to reduce wagers.

Betting on poker, bingo and lotteries at svenskaspel.se has fallen in line with the general downward trend for these games. However, sports betting, notably Oddset, and number games, especially Lotto and Joker, have increased.

Poker remains the most popular game at svenskaspel.se, which, despite the decline from 2009, reported net gaming revenue (referred to as the rake) of SEK 231 million (305).

Responsible gaming at svenskaspel.se

In contrast to the gaming market as a whole, which is losing players, the proportion of players at svenskaspel.se has increased. In brief, more people are playing but betting lower stakes. This is a positive development given the fact that one of the tasks of svenskaspel.se is to channel players from foreign gaming sites to a safer and more responsible gaming environment. Resources such as Playscan™, which helps players to

gain control over their gaming behaviour; and the obligatory budget, which governs how much time and how large a stake the player is prepared to invest, are some of the responsible gaming measures applied by svenskaspel.se.

The trade magazine "Internetworld" has listed the 100 best sites in Sweden. Svenska Spel was ranked 76th on the basis that svenskaspel.se offered solid gaming services and was also the best in accepting responsibility for the risks involved in gaming.

Gaming via mobile

For Svenska Spel, the mobile phone remains a distribution channel at the inception stage. During 2010, mobile gaming reported net gaming revenue of more than SEK 7 million. In 2010, Svenska Spel launched an application for iPhone that permits the player to link up the mobile with the sports bets placed at svenskaspel.se, using the mobile or with the Spelkort customer card at the retailer. Svenska Spel Målservice (score service), as the application is called, links up the score service with the player’s sports bets. The player personally selects the sport, leagues and matches that are to be monitored and can see ongoing and completed matches, get forecasts, obtain live checking, and find out which time and TV channel that is transmitting the selected match. The service won an immediate response and now has some 50,000 users.

In addition, a version was introduced for the iPhone that permits betting on Oddset, Lången, Mixen and Live. The service also works for iPad and iPod and is customised to function also for Android telephone in the future.

Arena gaming established

Arena gaming commenced in spring 2008 at two ice-hockey arenas on a trial basis. The activity was extended to football grounds and other ice-hockey arenas in the Elite ice-hockey series, except for the Globen/Hovet arenas. In 2010, Svenska Spel also established a permanent gaming site at the Gamla Ullevi facility in Gothenburg. One of the conceptual approaches in the cooperative venture involving arena sports is "Together with the Clubs", which strengthens Svenska Spel links to sport and its proximity to players.

Subscription sales

Subscription is a relatively new service that Svenska Spel offers its customers. At present Svenska Spel has more than 100,000 subscribers (approx. 50,000) and it is currently possible to subscribe to lotteries and Lotto with a Joker number. Customers can order subscriptions through Svenska Spel’s retail outlets, associations and at svenskaspel.se, and via associations.

Sales via associations

As of 31 December 2010, the number of associations with which Svenska Spel cooperates totalled 3,711 (3,346).

The minimum age limit of 18 that Svenska Spel introduced in 2010 for the purchase of lottery tickets adversely affected the associations’ potential to sell Svenska Spel’s lottery tickets in the traditional manner, since checking the age limit is a major challenge when sales do not take place at a fixed sales outlet. As a result, there is a desire to identify new approaches in cooperation with the associations, which now have the opportunity to sell subscriptions. New products and services will continue to be developed in interaction with the associations. Svenska Spel also offers support and advice to the associations in improving their potential to gain higher revenue, greater involvement and know-how in the area of responsible gaming.

Corporate sales

The Gaming & Lotteries business area also has a Corporate Sales function to which companies can turn should they wish to buy games and lottery tickets that they plan to use as prizes in competitions, or as gifts and so forth.