In a statement released on the Svenska Spel website, Hofbauer condemns the operators, labelled as "shadow gaming companies," for providing a "betting on outcome" option for foreign lotteries.
This allows Swedish operators to take wagers on externally owned lotteries, such as the American Powerball, German Keno or Finnish Lotto, without infringing on lottery regulation that prevents operators offering betting on Swedish lotteries.
Hofbauer said: "It is incomprehensible that this may continue. I can’t think of any other industry where it’s okay to use competing companies’ products as drawbacks for their own business.
"The shadow gaming companies cannibalise well-known lotteries without owning the brands they market and sell."
Hofbauer argues these operators are taking revenue away from Sweden’s lottery market.
He said: "The Swedish Gaming Act clearly states the lottery market should be reserved for public benefit and the state.
"In practice, the shadow gaming companies put this out of play."
In June this year, the SGA fined Lottoland SEK 700,000 ($73,304) for offering players in Sweden the opportunity to bet on the outcome of the Svenska Spel-owned EuroJackpot.
