Swedish Trade Association Head Calls for the Sale of Svenska Spel

Gustaf Hoffstedt, head of the Swedish Trade Association for Online Gambling (BOS), has reignited the debate over the state ownership of Svenska Spel, Sweden’s state-owned gambling operator. According to Hoffstedt, the Swedish government should sell its stake in Svenska Spel, adding that state ownership in a competitive market destroys the government’s neutrality.

Svenska Spel’s Government Ties Are a Net Negative

In an interview for Swedish media outlet Dagens industri, Hoffstedt points out the inherent conflict of interest when the state operates a gambling company while simultaneously regulating the entire industry. This dual role, he claims, risks undermining public trust in the state as an impartial enforcer of rules. He highlighted the difficulties of ensuring fairness when the government acts as both competitor and referee in the gambling marketplace.

The BOS head also questioned Svenska Spel’s compliance record, drawing attention to fines issued by Sweden’s gambling regulator, Spelinspektionen, which exceeded SEK 100 million ($9.19 million) this year alone. He noted that these fines, stemming from violations of the Gambling Act, undermine the credibility of state-owned companies as role models for private competitors.

Svenska Spel belong to a handful of state holdings that are particularly unsuitable for the state to own.

Gustaf Hoffstedt, BOS secretary general

Moreover, Hoffstedt warned that a potential major scandal at Svenska Spel could substantially damage the government’s reputation. Recent irregularities in Sweden’s gambling sector, such as illegal advertising practices, highlight such vulnerabilities, leaving Hoffstedt to believe that a significant controversy surrounding the operator is only a matter of time.

A Divestment Could Benefit All Parties

Hoffstedt also took issue with Svenska Spel’s influence over public discourse on gambling regulation. He argued that the company’s involvement distorts democratic processes, allowing it to influence policymakers in ways that prioritize its interests over broader societal concerns. Hoffstedt noted that Svenska Spel was, in many ways, setting the government’s agenda rather than vice-versa.

Both the Moderate Party and the Sweden Democrats, the two largest parties in Sweden’s ruling coalition, have previously expressed support for Svenska Spel privatization. Hoffstedt echoed their sentiments, arguing that divestment would enable the government to concentrate on its core responsibilities of writing laws and overseeing compliance. Meanwhile, proceeds from the sale could fund critical investments in infrastructure and other public needs.

There is no reason to wait any longer with the divestment of Svenska Spel. It would be a win-win for everyone.

Gustaf Hoffstedt, BOS secretary general

While acknowledging Svenska Spel’s efforts toward responsible gaming, Hoffstedt argued that private operators are equally capable of maintaining high ethical standards under a robust regulatory framework. Hoffstedt’s call for divestment underscores the tension between state ownership and the principles of a free market economy.