Kindred Group suggests ‘entity split’ for Svenska Spel

Kindred Group, Malta-based online gambling operator founded by a group of Swedish citizens, has requested further clarification from the Swedish government about the position of Svenska Spel, the state-owned gambling company in Sweden, as per the new gambling regulations in the country.

Earlier this month, the Swedish government published long-awaited updated provisions for its revamped National Gambling framework. In 2019, the country will open its online gambling market to licensed enterprises, with Kindred stating its full commitment to joining Sweden’s new regime.

Nevertheless, Kindred has highlighted its concerns relating to Svenska Spel’s ability to operate within Sweden’s ‘open online gambling marketplace’, whilst maintaining its control of state gambling services for land-based provisions (casino/betting points) and gaming machines.

Peter Alling, Group Head of Public Affairs at Kindred Plc, said: “The government proposition to Parliament is just one part of the reform. The reform intends to keep the market divided in one-part open to competition and one part exclusive to NGOs and governmental operator Svenska Spel.”

As the Swedish government moves to open its initial licensing window in August, Kindred has sought clarity on Svenska Spel’s potential market influence or advantages, highlighting concerns shared by a number of policy and industry stakeholders who question the wisdom of operating a state-owned enterprise within the open and newly regulated marketplace.

“Since Svenska Spel is to act on both the exclusive and the competitive market, it is from a competition law point of view extremely important that Svenska Spel is split into two independent entities,” continued Alling. “The Ministry of Enterprise (owner of Svenska Spel) and the Ministry of Finance (responsible for legislation on gambling) has so far acted in opposite directions.”

“Here, the government has a responsibility it can’t avoid. Failure to deal professionally with the split, not adhering to basic competition regulations, will seriously endanger the outcome of the reform.”