Svenska Spel, the betting and online casino arm of Sweden’s governmental gambling operator, has become a topic of discussion regarding its position in the market. In this article, we explore the various perspectives on the divestment of Svenska Spel Sport & Casino, considering its state ownership, impact on competition, and the calls for a separation between its commercial operations and government regulation.
State Ownership and Competition:
With approximately seventy gambling companies vying for market share in Sweden’s competitive gambling industry, the presence of a state-owned entity like Svenska Spel raises questions. According to a 2017 government investigation, a state-owned gambling company competing directly with others should be treated no differently from any other gambling company. This viewpoint emphasizes the need for a level playing field and equal opportunities within the market.
Governmental Role as Regulator:
One argument against Svenska Spel’s continued commercial involvement is the conflict of interest that arises due to its state ownership. Advocates for divestment argue that the government’s primary role should be that of a legislator and rule setter, rather than a commercial operator. By relinquishing its control over the gambling market, the government can focus on maintaining fair regulations and promoting responsible gambling practices.
Impact on Competition and Advertising:
Svenska Spel’s extensive advertising purchases have come under scrutiny as they create an uneven competitive landscape. Private gambling companies are compelled to increase their advertising spending to keep up with Svenska Spel, intensifying competition. Divestment proponents argue that by removing Svenska Spel’s commercial presence, the market will become more balanced, enabling fair competition among all gambling operators.
The Role of the New Government:
The recent change in government leadership in Sweden has provided an opportunity for revisiting the issue of divestment. Industry experts like Hoffstedt hope that the new government will recognize the importance of distinguishing between the roles of legislator and commercial operator. By cutting ties with Svenska Spel’s commercial operations, the government can focus on effectively regulating the market and ensuring a level playing field for all gambling companies.
The ongoing debate surrounding Svenska Spel Sport & Casino reflects the complexities of maintaining a fair and competitive gambling market in Sweden. Arguments for divestment emphasize the need for equal opportunities, separation of roles, and the removal of unfair advantages created by extensive advertising. As Sweden’s gambling industry evolves, finding the right balance between government involvement and market competition will be crucial for ensuring a transparent and responsible gambling environment for all.