Swedish non-profit lotteries merge in self-protection mechanism

Spelinspektionen, the Swedish gambling inspectorate, has imposed IP bans and payment injunctions against 23 unlicensed operators judged to be illegally targeting the country’s regulated online gambling market
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Three Swedish non-profit lottery organisations have joined a newly-formed merger company to battle against tough competition and new directives in the re-regulated Swedish marketplace.

As reported by Accent Magazine, Folkspel, Kombilotteriet and IOGT-NTO’s Miljonlotteriet have combined to form the new company, Svalo. The reason for the creation of Svalo, according to its Chairman Hans Sahlin, is the increased competition in the Swedish market as well as tough regulation making it difficult to market to new customers. 

Sahlin told Accent: “The re-regulation of the gaming market in 2019 entails requirements for certification, which makes it difficult for the smallest lotteries. It’s hard enough for us – the smaller ones have no chance. Then there is also a discussion that lotteries need to show “special moderation” in their marketing, and it can be a hard blow to the non-profit lotteries.”

Sahlin, also CEO of Folkspel, will lead the group of lotteries into the new era as it aims to battle the gaming industry’s national operator, Sper. IOGT-NTO’s Milijonlotteriet has been associated with Sper in the past, however, Sahlin insists that Svalo’s emphasis on not-for-profit will give it a competitive edge. 

He added: “There are many small lotteries that would never consider the idea of ​​joining Sper. We wanted to commit ourselves to keep the non-profit segment of the gaming market alive. The lottery industry in Sweden can contribute SEK 1.5 to 2bn per year to civil society. We want to help the Swedish people understand how important these lotteries are.”