Gustaf Hoffstedt, the secretary general of the Sweden Trade Association for Online Gambling (BOS), has urged the country’s government to sell off state-owned Svenska Spel to remove concerns over regulatory authority and competition in the national market.
Writing in an op-ed on Swedish news site Dagens Industri, Hoffstedt the Swedish government’s decision to sell vehicle inspection company Bilprovningen to TÜV Rheinland a German testing service provider, to its ownership of monopoly gambling operator Svenska Spel.
Hoffstedt highlights comments from Swedish Finance Minister Elisabeth Svantesson, who last week said there was “no obvious reason” why the state should own Bilprovningen. She said the state should instead “regulate and control the market”, while ownership should be down to others.
Hoffstedt has called on the government to apply this logic to Svenska Spel and sell it to a private sector buyer.
“Bilprovningen and Svenska Spel belong to a handful of state holdings that are particularly unsuitable for the state to own, in that the state companies operate in a competitive market alongside several normal private companies, where the state has the role of regulating both its own company but also all others,” Hoffstedt said.
The BOS chief has fought to dismantle Sweden’s gambling monopoly model since the market was liberalised in 2019. In October he told iGB he believed there is no place for a state monopoly in the commercial gambling sector, as the government’s role causes major conflicts of interest.
“In western society, the normal model is private companies run businesses, while governments and parliaments set and supervise the rules. But among the Nordic countries, the state is also quite an aggressive commercial operator,” says Hoffstedt.
Hoffstedt – you cannot be a player and referee
Continuing in the op-ed, Hoffstedt said both regulating and operating within the gambling market presented conflicting roles. He said being both a player and referee in the same match is “never a good idea”.
“No matter how much responsibility is distributed among various functions and authorities within the state, such an arrangement is set up to erode trust in the state’s role as a neutral judge,” he said.
Hoffstedt also flagged the damage a company scandal could have on the government’s reputation. Throughout 2024, Svenska Spel has accumulated more than SEK100 million (£7.2 million/€8.7 million/$9.1 million) in fines from the country’s gambling regulator.
“Every day with the state as owner of Svenska Spel, the government is exposed to this risk,” he said.
Leading on from this, Hoffstedt said that issues could arise when Svenska Spel or any of its representatives speak in parliament (Riksdag) about gambling regulation.
“The order in a democracy must be the other way around,” he said. “It is the Riksdag and the government that have the mandate to say what Svenska Spel should do. Svenska Spel should not give directives to the elected politicians.”
Historical support for Svenska Spel privatisation
The two most-represented parties in parliament, the Moderates and Sweden Democrats, have both declared support for privatising Svenska Spel
During the lead up the last election in 2022, both parties said pledged to sell off the state’s ownership of Svenska Spel but the the discussion has fallen quiet in the last couple of years.
However, Hoffstedt said last month’s sale of Bilprovningen suggests the government may now be willing to part with other state-owned businesses.
“The sale shows the government is prepared to go from words to action,” he said. “There is no reason to wait any longer with the privatisation of Svenska Spel. In fact, the state’s role as an impartial judge is probably even more important in the gambling market than in the car inspection industry.
“Of course, a sale must take place according to all rules in order to get as much paid for the company as possible. The sale can then form an important basis for important government investments in, for example, infrastructure.
