Svenska Spel’s Net Gaming Revenue Drops by 9% in Q3

Svenska Spel has reported a significant decline in its Q3 2024 net gaming revenue. With casino closures and rising taxes weighing on profits, the operator faces challenges in maintaining growth. Despite the drop in revenue, Svenska Spel is prioritizing sustainable gaming practices to protect customers and ensure long-term stability. Discover how these developments impact Sweden’s gambling landscape and what lies ahead for Svenska Spel as they navigate these obstacles.

Svenska Spel’s Net Gaming Revenue Down 9% in Q3 2024 Amid Casino Closures and Tax Increases

Svenska Spel, Sweden’s state-owned gambling operator, experienced a 9% decline in its net gaming revenue during the third quarter of 2024, a significant shift attributed to casino closures and a rise in Swedish gaming tax. The financial update reveals that the operator recorded SEK 1.78 billion ($0.17 billion) in net gaming revenue for Q3, down from the same period last year.

Key Factors Impacting Revenue

1. Casino Cosmopol Closures: One of the most significant factors behind the revenue drop is the closure of multiple Casino Cosmopol venues. In Q3 2024, only one casino was in operation compared to three casinos during the same period last year. This decline in casino activity played a critical role in the overall revenue slump.
2. Tax Impact on Profit: The increase in Sweden’s gaming tax from 18% to 22%, implemented in July, also hit Svenska Spel’s operating profit, which dropped by 9% in Q3 to SEK 627 million. The rise in tax burdens is expected to continue affecting the company’s financials in future quarters.
3. ‘Healthy’ Revenue Growth: Despite the challenges, Svenska Spel highlighted a positive note—94% of its total net gaming revenue is considered “healthy” under their responsible gaming framework. This demonstrates their commitment to sustainable gaming practices, even as it impacts overall growth.

Nine-Month Performance Overview

For the nine-month period from January to September 2024, Svenska Spel’s net gaming revenue was down by 5%, reaching SEK 5.61 billion. The Casino Cosmopol closures, along with increased focus on responsible gaming measures, contributed to this decline. The group’s operating profit for the period was SEK 1.58 billion, representing a 15% decrease due to one-time costs, including the winding down of two casinos and penalty provisions.

Svenska Spel’s CEO, Anna Johnson, emphasized the company’s conscious decision to prioritize sustainable growth. “The percentage of healthy income continues to rise, reaching 94% during the third quarter. While this affects revenue, it aligns with our commitment to protecting customers and achieving long-term balance between growth and responsibility,” Johnson said.

While Svenska Spel has faced a notable decline in revenue due to casino closures and rising taxes, the operator remains steadfast in its focus on sustainable gaming. As the company continues to implement responsible gaming measures, it is clear that Svenska Spel is aiming for a future where player protection and sustainable growth are at the forefront. The impact of these decisions on the company’s long-term profitability remains to be seen, but for now, Svenska Spel is committed to balancing financial performance with social responsibility.