The Swedish gaming market

Svenska Spel is facing increasingly stiffer competition in a market undergoing rapid change. The Company’s future depends largely on how Sweden’s political authorities plan to regulate and control the overall gaming market nationwide.

In June 2007, the Government presented a directive for a "Future gaming regulation" inquiry. At the end of May 2008, a supplementary directive was presented for the purpose of surveying the conditions for the sale of some of Svenska Spel’s operations. The final report was presented on 15 December 2008 and was submitted to the parties concerned for their consideration. At this point in time, it is not known whether or when the Government will take action regarding the issue.

Two years have past since Svenska Spel submitted its response. Among other points, it was noted that current market legislation is not being observed and that judicial authorities do not prioritise legal action against infringements.

Regulated and unregulated actors

According to Swedish law, it is essentially illegal to organise gaming for monetary gain. However, the State has granted exemptions for a number of gaming companies whose operations are strictly controlled through, for example, the Lotteries Act. The Swedish Gaming Board (LI) has overall responsibility for the control and supervision of gaming and lottery activities.

The confirmed Swedish gaming market consists of regulated and unregulated gaming companies. The wholly State-owned company Svenska Spel; the horse racing organisation, AB Trav och Galopp (ATG); and others (including the games Bingolotto, Bingo and PostkodLotteriet) are the major regulated actors. These also include private operators of restaurant casinos, which, however, have only a very small portion of the market.

There are hundreds of Internet gaming companies targeting Swedish players, such as Ladbrokes of the UK and Unibet, Expekt and Betsson, which are based in Malta. Foreign Internet companies are not covered by the legislation and regulations that apply to regulated actors. Using their Internet gaming sites, they compete with the regulated gaming companies using similar gaming forms: poker, horse racing, bingo, sports games, number games and lotteries. Moreover, those who can connect to the Internet have a vast number of casinos readily accessible from their home. Some of the new companies, such as Mr Green and Bonniers Vinnarum, specialise in Internet casino games. There is a wide offering of slot machines and roulette tables, meaning gaming forms that, in the regulated market, are strictly reserved for restaurant casinos and Svenska Spel’s casinos and Vegas VLTs.