Svenska Spel Q3 dragged by Swedish tax burdens

180329 Spelkuponger i en spelbutik den 29 mars 2018 i Stockholm. Foto: Adam Wrafter / BILDBYRN / Cop 233

Svenska Spel, Sweden’s state-owned operator, saw a drop in revenue and net profit in Q3 compared to last year. The company reported revenue of SEK 1.78bn (£130m) for the three months ending on 30 September, which marks a 9.2% decrease from the same period in 2023.

CEO Anna Johnson linked the decline to changes in Swedish gambling tax laws. The Swedish Riksdag increased the gambling tax by 4%, raising it to 22% from the previous 18%, which has affected Svenska Spel’s financial performance.

During Q3, the company also started tracking income from non-risk players, which now make up 93% of its revenue. Johnson noted that their commitment to stronger responsible gambling measures is impacting revenue negatively and will likely continue to do so. She emphasized that this is a deliberate choice to ensure sustainable growth and to protect customers.

Svenska Spel’s Sport & Casino division experienced a 12.4% drop in revenue, bringing in SEK 447m in Q3 2024, compared to the previous year. The company attributed this decline to stricter responsible gambling policies.

Revenue from offline operations also decreased by 10.3% year-on-year, reaching SEK 595m. The biggest drop, 25.6%, was seen in restaurant and bingo hall revenues. The closure of several Casino Cosmopol locations contributed significantly to the decline, with revenue falling 76.3% to SEK 31m, leaving only the Stockholm casino still in operation.

Despite declines in offline revenue, Svenska Spel’s online gambling segment grew by 2.3% to SEK 1.06bn in Q3, with 51% of this revenue coming from mobile platforms. Online gambling accounted for 59% of the total Q3 revenue.