Home / Business / Swedish regulatory rules negatively affect online slot games and casino operation revenue

Swedish regulatory rules negatively affect online slot games and casino operation revenue

The Swedish state gambling operator Svenska Spel noted a decline in revenue in the first half of 2019. The situation improved in the second quarter of this year due to an increase in the number of online casino customers and slot machine games players.

Revenues for the first half of the year from online slots decreased by 4% over the same period last year and amounted to 4.1 billion Swedish kronor ($437 million).

Revenues from the Sport & Casino division increased by 5% to 1 billion Swedish kronor. The operator associates the improvement in performance with the advent of new products for online casinos, like free slots with no download and the expansion of the sports betting line.

The company main source of earnings remains the Lottery Tur, even though the profit here was reduced by 3%. Instant lottery operations are not distinguished by a qualitative increase in indicators, but the situation has improved the game in the format of draws.

Ground-based gambling establishments and slots gambling halls found a decrease in revenue by 1

4% to 849 million Swedish kronor.

The president and CEO of the company, Patrick Hofbauer, said that operations were balanced after the market was restarted with new legislations, and the growth in the number of customers and income was gradually recovering.

Despite the fact that the company’s expenses decreased by 9% and amounted to SEK 595 million, Svenska Spel paid a total of SEK 783 million in tax deductions. The company’s operating profit declined by 50% to 1.1 billion Swedish kronor.

Svenska Spel’s net profit amounted to SEK 825 million thanks to lottery and free slot machines no download, compared with 2.1 billion in local currency earned in 2018. Interesting fact, that clients which played free slot machines with no download – usually spend more money after playing for free.

In the second quarter, revenue fell by 2% to 2 billion Swedish kronor, and tax deductions to the state amounted to 381 million Swedish kronor. The company’s net profit was declared in the amount of 417 million Swedish crowns, which is half as much as the results of the second quarter of 2018.