Svenska Spel Chief calls for ban on lottery betting. The president and chief executive of Svenska Spel, Patrick Hofbauer has called for the country’s legislature to ban lottery betting. He expressed that the lottery betting sector posed risks to the financial health of sports clubs and other non profits in Sweden as they cannibalise the revenue of traditional lottery.
His announcement comes after the release of a new report from H2 Gambling Capital, commissioned by Svenska Spel. The report said that 40% of the European online lottery market’s revenue comes from lottery betting companies. Its contribution estimates in the range of €1.25bn to €1.50bn. The vertical’s revenue is growing between 10% and 20% each year.
“The shadow lottery companies take market shares from the very part of the gaming market that the 2019 Gambling Act exists to preserve. If [the lottery betting sector’s] development continues, funding for sports associations and charities can be adversely affected. All nonprofit businesses that receive a portion of their revenue from public lotteries are affected.” said Hofbauer.
He added that “The legislature must act soon. In Denmark, the risk was identified early. It does not allow betting on lotteries for gaming companies seeking a Danish betting license. We should introduce the same ban on betting on lotteries in Sweden. It is both right and reasonable.”