Operator News
Sweden – Revenues fall for Svenska Spel as consumer protection increases
By Phil - 22 July 2019
Net gaming revenues for Swedish state-owned Svenska Spel fell by two per cent in the second quarter coming in at SEK2,039m although online grew by 14 per cent, with mobile increase sing by 21 per cent.
The company’s four land-based casinos under the Casino Cosmopol brand saw revenue fall by 12 per cent whilst the company’s estate of Vegas automatic dispenser slot machines dropped by SEK37m or almost 17 per cent.
Casino Cosmopol and Vegas replaced 1,300 Vegas automatic dispensers during the quarter with new ones that include a stronger consumer protection since Playscan’s risk assessment is offered directly in the machine.
Magnus Lannersund, Department Manager for Vegas, explained: “When the new gaming market arrived at the turn of the year, with new legal requirements, we made some changes for the player. Among other things, this meant that our players had to change their limits in terms of time and money. Since then, we have launched perhaps the biggest change in a long time: login with mobile BankID – something that has been received very well. Almost half of those who currently play Vegas use BankID as their login. More than 500 restaurants and bingo halls around the country have been equipped with over 1,500 brand new slot machines. Our players really appreciate the simpler navigation, the new enhanced gaming responsibility where the player must set a number of different limits before the game can start and the possibility of turning off from continuing to play directly in the machine.
“Our focus ahead is of course to continue to roll out the new machines and bring in the old ones for destruction. In autumn, we will launch Swish as a supplement to cash payment. It is a long-awaited function, both by customers and by our business partners.”
Digital gaming now accounts for 35 per cent of the group’s net gaming revenue.
During the second quarter, there was also a recovery in customer growth and revenue compared with the beginning of the year.
The net operating margin of 26 per cent is considerably lower due to the new gaming tax than in the previous year. With adjustment for gaming tax, it amounted to 45 per cent.
The Sports & Casino business area, which operates on the new market for online gaming and betting, increased by more than five per cent compared to the same quarter last year.
Svenska Spel’s digital business is increasing by 14 per cent compared with the same quarter last year, of which mobile phone sales are increasing by just over 21 per cent. The digital deal
Patrik Hofbauer, President and CEO of Svenska Spel, said: “Svenska Spel’s operations have stabilised after the transition to the new gaming market and we have seen a recovery in customer growth and revenues. The customers we lost at the end of the year in connection with the division of the Group and the transition to separate gaming accounts are now back with us. We are pleased that customers choose Svenska Spel because they appreciate our products and because it is safe and secure to play with us.”
The Sports & Casino business area launched virtual sports during the quarter along with many new casino games and the Play Together service, where customers can buy shares for various sports games. The rollout of self-service has begun, bringing a new service with touch screens where customers can fill in their sports betting via digital coupons and then pay at the checkout.
Mr. Hofbauer added: “It has been an intensive quarter in the new gaming market where the Gaming Inspectorate acted vigorously. This is positive for all Swedish consumers as it shows that consumer protection has been strengthened. As the entire Swedish people’s gaming company, our vision is that games should be for everyone’s pleasure. This means that our focus ahead is offensive, but with continued consideration of our customers.”
