Gambling Bonus Terms Are Unfair, Claims the CMA [...]
Sweden’s Licensed Operators Post Profits for Q1 2016
- May 24, 2016 By Nemanja L. -
Sweden’s gambling market has started to show signs of recovery as most gaming companies posted their first profits after several very difficult years.
Despite being given an unfair advantage due to the country still blocking international gaming operators, domestic companies have struggled to break even in recent years, which clearly suggests they lack the know-how needed to profit from the opportunity that presented itself.
But, the good news is they are finally seeing some positive numbers, with the first quarter of 2016 going down as one of the most successful after quite a while.
National Lotteries Have Reason for Optimism
The report released by Lotteriinspektionen, the Swedish gaming agency, has revealed that the total turnover of the country’s gambling market rose 5 percent to SEK 5.4 billion ($651 million) in the first three months of the current year.
When it comes to licensed operators, their turnover was up 6 percent as opposed to 5 percent rise in the turnover of unlicensed international gaming companies.
And while the licensed companies have been on a downward spiral for quite some time, international operators did not exactly follow suit, which did not go down well with the Loteriinspektionen bosses.
The state-owned Svenska Spel saw their revenue rise 4 percent to SEK 2.3 billion, with their high street and online operations up by 4% and 16% respectively.
Horse racing operator ATG enjoyed great numbers when it comes to their online business, which rose 15%, but their land-based revenue fell 1%.
Meanwhile, Postcode Lottery, SAB/SSU, People Games, IOGT-NTO and other national lotteries all enjoyed some strong numbers, which is enough to suggest that Sweden’s gaming market may be on the road to recovery.
Svenska Spel Chairwoman Resigns
Sweden is currently in the process of regulating its gaming market and allowing foreign operators to apply for a license, but the new legal framework has seen numerous delays.
Before the new law is passed, the government plans to privatise Svenska Spel, whose chairwoman Anitra Steen resigned last month as she was disappointed by the proposed changes.
And while Svenska Spel chiefs claim the company has the players’ interests in mind, they have come under intense criticism for serious increase in marketing expenditure, with this move believed to be for the sole purpose of improving the company’s profits.