Svenska Spel

Svenska Spel urges government to ban lottery betting

Svenska Spel has called for the Swedish government to ban lottery betting, emphasising that ‘secondary lotteries’ are reducing the market share held by not-for-profit lottery operators.

Svenska Spel CEO Patrik Hofbauer hit out at ‘shadow games’ operators for offering lotteries without a licence, which he argued poses a risk to the financial health of sports clubs and other nonprofits in Sweden.

Hofbauer said: “The shadow lottery companies take market shares from the very part of the gaming market that the 2019 Gambling Act seeks to preserve. If development continues, funding for sports associations and charities can be adversely affected.

“In short, all nonprofit businesses that receive a portion of their revenue from public lotteries are affected.”

Hofbauer pointed towards research commissioned by Svenska Spel, and carried out by H2 Gambling Capital, which revealed that lottery betting operators accounted for almost 40% of the European online lottery market’s revenue.

The research showed that ‘shadow gaming’ companies generate approximately €1.25-1.5 billion in 2019, with revenues increasing between 10 and 20% each year – resulting in ‘less money for society and for lotteries that support non-profit activities’.

The CEO pointed towards Denmark, which previously banned lottery betting: “The legislature must act soon. In Denmark, the risk was identified early. It does not allow betting on lotteries for gaming companies seeking a Danish betting license.

“We should introduce the same ban on betting on lotteries in Sweden. It is both right and reasonable.”

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