Svenska Spel CEO: Taking on the role of CEO, land-based casino challenges and more

Thank you! I started at Svenska Spel on 17 June and, since then, I have been immersing myself in the business and the industry. I have met my new colleagues and participated in Svenska Spel’s seminars at Almedalen – a yearly meeting place in Visby for dialogue and exchange. It was the perfect flying start where I got to engage with current topics in the sector, discuss and network.  

It is exciting to join a new company and learn both about Svenska Spel and the gambling sector, which is new to me. In addition to Svenska Spel’s strong position in the Swedish gambling market with well-established product brands, it is particularly motivating that we are the largest sponsor of Swedish sports, and our surplus benefits society as it goes back to our owner, the Swedish state. Running a company based on these principles is something I find incredibly inspiring.  

We have four million customers and, every day, we offer them gambling experiences that bring joy, excitement and dreams. At the same time, being active in the gambling sector comes with significant responsibility – maintaining a balance between providing entertaining games and doing so in a responsible and sustainable manner. As a state-owned company, it is crucial to stay ahead, be proactive and simultaneously shoulder a substantial responsibility. These are driving forces that matter to me as a leader, and I feel like I’m in the right place.  

What are your first impressions of the gambling sector?  

Overall, the Swedish gambling market appears to be functioning well. However, there are challenges, such as unlicensed gambling – companies that operate without a licence in Sweden but still target Swedish consumers. This is an issue that politicians, authorities, and we as gambling companies need to continue working together to address and find solutions for. We also need to actively work on increasing trust in the gambling sector, both as individual gambling companies and collectively within the sector. At Svenska Spel, we emphasise creating sustainable gambling experiences that contribute to a better Sweden. This includes setting an example, and driving the entire sector toward greater responsible gambling practices and increased focus on sustainability.  

One example of our efforts is that we have decided to start reporting healthy revenues – that is, the share of revenues coming from customers with a lower risk of gambling problems. We do this to highlight that it is possible to run a gambling company in a sustainable manner and to enhance transparency within the sector. The first report will be at the end of August and, thereafter, this key metric will be included in regular interim reports.  

While a few other licensed gambling companies in Sweden currently report, in diverse ways, the share of healthy versus unhealthy revenues, we have worked for several years to establish a common measurement method and definition for what constitutes a healthy revenue. Unfortunately, the sector has not reached a consensus on this. Therefore, we now start reporting based on risk models in our analytical tools. It’s an important step in building trust in the gambling sector overall.  

What are the main targets you’ve laid out, or perhaps been assigned by the Board? 

Our main goal is to continue offering entertaining games in a responsible manner, which means creating growth in healthy revenues. We hold a position as Sweden’s leading gambling company, and we aim to strengthen that position through our unique games, providing the best customer experience and leading in responsible gambling. By leveraging technological development and increased use of AI, we can make data driven decisions to offer our customers even more enjoyable, simpler and safer gambling experiences. We constantly challenge ourselves to be faster, more efficient and to provide the best employee experience. It is also essential for us to be an attractive employer so that we can attract the expertise needed for this transformation. 

I approach the task of taking over and continuing to lead Svenska Spel with humility

How do you reflect on Svenska Spel’s current performance? 

We offer a wide range of games and assist our customers in playing safely. Additionally, we contribute long-term value as Sweden’s largest sports sponsor, support research on gambling problems and allocate our entire surplus to the national treasury. This is what makes us the gambling company for all of Sweden and enables us to create lasting value for our customers, owners and employees. Over the past year, the Swedish gambling market has experienced declining growth. Itis a mature market with an increasing share of consolidation. Looking at Svenska Spel’s recent half-year performance, our business area for number games and lotteries has performed strongly, aligning with the Swedish gambling market where lotteries accounted for the most significant growth in the first quarter. 

Our business area Sport & Casino has seen a slight decline during the first half of this year. However, it is essential to consider that we have simultaneously strengthened responsible gambling measures. This has negatively impacted revenues across all our business areas, particularly affecting sports and casino gambling. On the other hand, responsible gambling efforts positively influence the share of healthy revenues. This balance between growth and responsibility is crucial. We benefit from offering gambling responsibly, even if it affects revenues. We aim for more sustainable play among our customers and strive for healthy revenues. During the first half of this year, we have implemented several actions to transform the organisation for the future, address challenges and create space for new initiatives. This includes reorganisation and downsizing of personnel, with a new structure in place since 1 April. By doing so, we create room for essential investments, primarily focused on transformation and growth. 

We have also closed our land-based casinos in Malmö and Göteborg, resulting in reduced losses within the Casino Cosmopol business area. Land-based casinos have faced challenges for many years – not only in Sweden but also in countries like Finland – due to declining visitor numbers caused by increased online casino gambling and Covid-19 pandemic-related closures. However, our casino in Stockholm remains open, offering the same services as before. The significant transformation through reorganisation and casino closures has already yielded positive results, evident in the second-quarter interim report – lower costs, improved results, and a strengthened operating margin. This confirms that we’re on the right track with the changes we’ve implemented. 

How do you reflect on Patrik Hofbauer’s legacy as your predecessor? 

While I was at Grant Thornton during those years, I understand that Patrik made a significant contribution as CEO and Group Chief Executive during his five-year tenure. Notably, he navigated Svenska Spel into the new gambling market following the reregulation on 1 January 2019, which involved new gambling legislation, the division of the Svenska Spel Group, and all the substantial changes that ensued. His leadership played a crucial role in maintaining Svenska Spel’s strong position in the gambling market. I approach the task of taking over and continuing to lead Svenska Spel with humility, aiming for continued success. 

What are the main lessons you’ve learned from your career that you intend to apply here? 

Two key takeaways I carry with me are the importance of building an organisation that creates long-term value, and having a shared strategy and vision where everyone feels involved. 

What benefits does a background in accounting/finance bring to the role? 

My experience from the audit and consulting industry is valuable. Particularly, leading a company in a regulated market where compliance matters are central – adhering to the laws and regulations we must follow. In this context, I feel confident and experienced. Additionally, I can contribute my leadership experience, especially in defining a common vision and strategy, as well as emphasising customer focus and value. 

Are you focused on addressing any specific challenges in your first few months? 

My overarching challenge is to continue building value at Svenska Spel. We aim to remain competitive, offering gambling experiences that customers desire while ensuring they play safely and responsibly. Our priority is not solely growth – the balance between growth and sustainability is paramount. 

Finally, what is your outlook for the next year – how quickly, or gradually, are you looking to implement change? 

Given our recent major organisational transformation, our focus after the summer is to set a clear direction for the future. I will be happy to share more about our plans further on!