State Owned Swedish Casino Gambling Giant Svenska Spel 1Q Profits Up

Today, Svenska Spel (Swedish Game), is a government owned company which operates gambling parlors, poker, bingo, four traditional casinos as well as online gambling in Sweden. The company operates through 7000+ agents, 2300+ restaurants, bars, bingo rooms and internet gambling websites.

Svenska Spel was formed in 1997, under the direction of Swedish gambling laws, when two Swedish state owned companies – Tipstjänst (Tip service) and Penninglotteriet (The money lottery) – merged in order to centralize their many overlapping activities. Svenka Spel operates four casinos in Stockholm, Malmö, Gothenburg, and Sundsvall through its subsidiary, the Cosmopol Casinos Group.

Svenska Spel has recently announces its first quarter net profit at 1.226 billion kronor, a 4.4% (52 million kronor) increase from 1Q of 2010. Acting President of Svenska Spel, Anders Hägg, credits the increase in overall profits to a more cost focused strategies, a tremendous growth of the Vegas Casino Cos, larger than expected profits from oline bingo in Sweden and the fluctuation of jackpot payouts. The Acting President stated that the company’s biggest concern is to continue to cultivate positive relationships with its customers.

“In addition, there are many foreign online sportsbooks, casinos and poker rooms which spend millions in illegal advertising dollars to attract Swedish online gamblers in violation of the Lottery Act which forbids this form of advertising within our country,” says Anders Hägg.

In the past few years, the Swedish gambling market has undergone a noticeable change, moving from a market where Svenska Spel faced a few competitors to many. The vast majority of the competitors is outside Swedish jurisdiction and is unlicensed in Sweden. On a positive note for the company, Swedish gamblers, according to a recent poll, have the most confidence in Svenka Spel and see it as the most trusted provider of online casinos in Sweden.

The majority of Svenska Spel’s revenues are earmarked for social services and sports. Of the 5 billion kronor generated yearly, 1 billion goes towards development of sports in Sweden. Every charity from blind war veterans to animal shelters receives a portion of the proceeds.