Svenska Spel maintains a positive financial outlook despite completing a mandatory transformation of its business, no longer operating Casino Cosmopol properties in Sweden.
H1 trading saw Sweden’s state-owned gambling firm match net gaming revenues comparatives at SEK 3.68bn (€320m) as group operating profits stand at SEK 1,179bn (circa €100m).
Yet beneath the headline figures, Q2 trading saw Svenska Spel accommodate a tougher regulatory and fiscal climate. Of significance, Sweden applied a gambling tax hike from 18% to 22% on 1 July that had a marked impact on group profitability, with Q2 operating profit down 17% year-on-year to SEK 545m (€47m).
While group-wide net gaming revenue for Q2 remained flat at SEK 1.839bn, key units diverged in performance. Oddset sportsbook and Lotto products provided marginal growth of +1%, buoyed by customer acquisition and sustained interest in major events like the Ice Hockey World Championship. Eurojackpot, in particular, continued to serve as a flagship product for Lotto activities, with new sales records attributed to large jackpot wins.
Of concern, Vegas slot operations posted a 13% revenue decline. The segment continues to feel the impact of Sweden’s strengthened responsible gambling compliance, which has limited machine placements and tightened player protections. The changes are part of a broader mandate affecting Svenska Spel, which is undergoing structural adaptation following the Riksdag’s decision to end all land-based casino operations.
The closure of Casino Cosmopol in Stockholm on 25 April marked the final chapter for the retail casino business, which has now entered liquidation. Svenska Spel has since begun the process of divesting its real estate holdings associated with the shuttered operations.
Despite the challenging landscape, management remains optimistic. Online sales channels grew 5% year-on-year in Q2, with digital now accounting for 62% of total revenue.
Leadership believes this shift in consumer behaviour provides a buffer against retail headwinds and positions the group for sustainable recovery.
“We are navigating a time of regulatory and operational transformation, but our focus remains steady – delivering customer satisfaction, promoting healthy play, and building sustainable growth,” said Anna Johnson, President and CEO of Svenska Spel.
“We see strong momentum in our online segment, and with continued investment in our digital offerings, we’re confident that this will help offset retail declines and drive long-term value.
“Our long-term strategy is clear: strengthen our digital capabilities, deliver healthy growth, and ensure we lead the market not just in performance, but in integrity and customer satisfaction.”
Don’t forget to subscribe to our Telegram channel!
