Svenska Spel has an attractive customer offering. Responsiveness to customers’ needs and wishes are crucial for developing operations and the offering in the right direction. Customers value responsibility but first and foremost demand exciting and new experiences. Experiences and responsibility go hand-in-hand to create a positive total experience. As part of being where customers are, Svenska Spel has a well developed service and distributes games throughout Sweden.
Svenska Spel should be customers’ first choice. Customers are offered a complete experience, whereby gaming enjoyment builds on an attractive customer offering and taking substantial responsibility. Gaming should feel stable, safe and secure with Svenska Spel. The customer offering should strengthen Svenska Spel’s competitiveness through an enhanced image, satisfied customer index, responsibility and market shares.
The customer satisfaction index (CSI) for 2013 was 62% (66). Every quarter, Svenska Spel measures the percentage of Swedes that are expressly positive to the company, which is known as its image rating. In 2013, that rating was 62%, which was up one percentage point compared with the preceding year. Svenska Spel has the strongest image rating by a clear margin among gaming companies. The closest other operator has an image rating of 47% (49). In general, customer confidence in the gaming industry as a whole is declining.
Svenska Spel’s market share is estimated at slightly more than 48%, which is down somewhat compared with 2012. Svenska Spel is bolstering its share of the retail channel while its online market share is declining due to the rapid growth of online casinos among the foreign unregulated gaming companies.
Svenska Spel has prioritised and made resources available in its operations to be able to implement new initiatives in the digital area, among others. By refining effective and consistent responsible gaming – and communicating more clearly what actions Svenska Spel takes to enable stable gaming – the company can better meet customers’ expectations. During the year, Eurojackpot, an international number game partnership with 14 European countries participating, was launched. Customers were delighted that Svenska Spel was permitted to raise the payout percentage on Oddset, which was implemented to enhance the product’s attractiveness and better meet competition from the unregulated gaming companies.
Svenska Spel’s mandate is to provide a well-developed service in both urban and rural areas. The nationwide distribution network of retailers is, alongside the company’s strong brands, an important success factor. Svenska Spel works in partnership with about 5,700 retailers, of which about 780 are located in a rural area or are the only gaming retailer in a small town.Svenska Spel pursues an ongoing dialogue with its retailers and works in partnership to enhance customer interaction in stores in the best possible way. The Retailer School trains new retailers in such areas as responsible gaming, gaming forms and customer interaction. In 2013, 344 individuals (378) completed the Retailer School and 1,456 (1,302) participated in other training courses.
Svenska Spel offers games on the Vegas Video Lottery Terminals (VLTs), which are found in almost 2,300 restaurants and bingo halls in both urban and rural areas.
Under the owner’s mandate, Svenska Spel must provide a credible and attractive alternative to illegal gaming operations. The Supreme Court ruled that Vegas is the only VLT allowed in Sweden. Nevertheless, illegal gaming machines annually generate billions in turnover. In addition, competition from online casinos is noticeable.
There are a total of 6,713 VLTs installed among Svenska Spel’s business partners. Svenska Spel is to meet customers’ demands for attractive gaming operations and the gaming portfolio is expanded on an ongoing basis. By continuously developing responsible gaming on Vegas, Svenska Spel wants to give its customers the possibility of stable gaming, which provides a better gaming experience. Read more about responsible gaming on Vegas here.
Games in the digital channels, meaning svenskaspel.se and mobile phones, are growing the fastest. Svenska Spel commands a share of about 23% (24) in the digital channels. Over the year, Svenska Spel has intensified efforts to strengthen its digital offering. To meet customers’ future needs and expectations as well as to offer the best customer experience, Svenska Spel is endeavouring to develop a new digital platform, which will be launched in 2014. The platform will be launched first for mobile phones and secondly for tablet computers.
The ability to play on site in conjunction with matches is popular and nearly 30 football and ice-hockey arenas are now included. On-site arena gaming is a partnership between Svenska Spel, Arenabolaget (the Arena company), local gaming retailers and sports associations.
Gaming subscriptions is an operation that continues to grow.Svenska Spel currently has 132,500 subscribers for Triss and Lotto.
Svenska Spel’s subsidiary Casino Cosmopol AB operates international casinos in Stockholm, Gothenburg, Malmö and Sundsvall. Casino Cosmopol offers a variety of entertainment in terms of classic and new casino games, restaurants, bars and entertainment in historic premises.
The competition, primarily from online casinos, is clear and Casino Cosmopol works to provide information about its unique offering of attractive games combined with an exciting atmosphere, food and entertainment – a real casino. The experience and the personal contact guests get when they visit one of Svenska Spel’s casinos is a clear competitive advantage that the company nurtures and continuously develops. The ambition is to offer world-class hospitality combined with a focus on responsible gaming. Read more.
The ability to keep track of your gaming is important for the total gaming experience. A new, standardised and consistent approach to responsible gaming will be a key competitive advantage for Svenska Spel moving forward. As part of meeting customers’ and other stakeholders’ expectations, the company is working with implementing mandatory registration in 2014 for all games excluding paper lottery tickets and casino games. Among other things, the aim is to offer customers good and efficient tools for controlling their gaming and setting limits. It is important to maintain the protection of customers’ integrity in this context. A key part of these efforts is ensuring that customers receive clear information about why Svenska Spel is registering their details, which is part of the mandatory game registration project. Read more about Svenska Spel’s initiative to strengthen responsible gaming.
Svenska Spel works to highlight and prevent unethical behaviour, both internally and externally. Customers must feel confident that the company combats gaming-related corruption so that gaming can be carried on in a safe and fair manner. Svenska Spel’s Code of Conduct summarises the company’s overall approach to responsible conduct. The purpose of the Code is to describe clearly how Svenska Spel should behave internally, towards customers, suppliers, retailers, business partners and its operating environment.
Svenska Spel is explicit that its operations must not be used for money laundering or other criminal activities. Integration of responsible gaming and gaming security in products and distribution forms is a key part of operations. Unusual gaming patterns are reported to the police when suspicion exists of criminal actions.
Match fixing and manipulated results is a recurring problem in Europe and while it even occurs in Sweden the extent is difficult to determine. To counter the problem, Svenska Spel initiated a collaboration with the Swedish Sports Confederation in 2013. Initiatives by Svenska Spel include funding a new position at the Swedish Sports Confederation, which is tasked with taking responsibility for information and educational support to counter game-related corruption and to coordinate efforts with the individual sports associations. Svenska Spel will continue to perform ongoing reviews of the game offering and abstain from offering games where the results are easier to manipulate.
During the year, 15 poker players were excluded and reported to the police under suspicion of utilising forbidden software and breaching the company’s online poker rules. Svenska Spel repaid SEK 3.8 million to slightly more than 25,300 poker players who were impacted by the above. As a consequence, Svenska Spel has updated its monitoring system and implemented new routines to discover similar rule violations.
Svenska Spel and the Swedish Basketball Association submitted two joint reports to the police regarding suspicions of irregularities in conjunction with a match in the Basketligan (Swedish basketball league) that was played in December 2012. Through its own investigations, Svenska Spel was able to confirm irregular betting patterns for the match. The prosecutor decided to close the investigation.
Svenska Spel also regularly monitors cases of illegal gaming machines among its business partners/retailers. Reports are sent to the Swedish Gambling Authority and the business partner/retailer is told to remove the illegal gaming machines. If the illegal gaming machines are not removed, Svenska Spel terminates the partnership. In 2013, one retailer (five) was terminated due to having illegal gaming machines.
Svenska Spel’s casinos come under the Swedish Act on Measures against Money Laundering and Terrorist Financing and are supervised by the Swedish Gambling Authority. Suspicious transactions are reported to the Financial Unit of the National Criminal Intelligence Police Service. The casinos’ procedures and training initiatives have been deemed effective as has their ongoing cooperation with the Financial Unit of the National Criminal Intelligence Police Service and supervisory authorities. In 2013, Casino Cosmopol reported 305 incidents (332) of unusual monetary transactions to the Financial Unit of the National Criminal Intelligence Police Service in accordance with the Swedish Act on Measures against Money Laundering and Terrorist Financing.
Svenska Spel has one Compliance Officer with Group-wide responsibility for issues including money laundering. Svenska Spel voluntarily applies a risk-based approach to these matters even in the operational areas that are not directly subject to this legislation.
Ongoing collaboration with the Swedish Gambling Authority, the Financial Unit of the National Criminal Intelligence Police Service and other authorities are key to combating crime at the casinos. Casino Cosmopol is refining its methods, offering training courses and developing new and improved systems and procedures under the supervision of the Swedish Gambling Authority. All guests are identified, registered and monitored by cameras.
Customer security was enhanced through the introduction of identity verification for payouts over SEK 1,000. For winnings of SEK 20,000 or more, the retailer terminal is blocked and the winner will have contact with Svenska Spel directly before collecting the winnings.
Limited edition, a completely new initiative with themed slot machines, started a 12-month tour of Casino Cosmopol’s casinos in 2013. Casino Cosmopol was the first casino in Europe with this type of event based on slot machines that provide an exceptional experience and gaming atmosphere due to their packaging in the form of graphics, music and super-sized gaming field. Themes included the Wizard of Oz, Michael Jackson, the TV series CSI and Aladdin.