The saga of Swedish gaming monopoly Svenska Spel has thickened over the past two weeks. From mounting legal squabbles to questions concerning the legitimacy of a gaming monopoly to encroaching international gaming entities – Svenska Spel is wrapped in controversy.
The first problems began some 4 months ago when the European Commission initiated legal proceedings against Germany and Sweden to curtail the advertising of Internet gambling under the newly enacted Interstate Treaty. While Germany was able to clamp down on private advertisers, Sweden faced a more complicated issue. Because Svenska Spel is state-sponsored, Sweden was looking at a potentially serious hit to its own income (the lowest reports have the moneys going to Sweden from Svenska Spel at $7 million USD.)
Furthermore, members of the Swedish media have been calling for UIGEA like regulations to be placed on Internet poker. Stefan Windmark, the lawyer for the Swedish daily newspaper Aftonbladet, said:
We are very pleased that the Commission has taken up this matter with the Swedish government. In the letter from Aftonbladet to the Commission two weeks ago, we requested the Commission to take up the subject of poker, as the focus of previous actions has been on the field of sport betting.
This has put Svenska Spel in a tenuous position – either cut down on their own business or face the wrath of the European Commission. On April 21, CEO Jesper Kärrbrink announced his resignation stating:
It has recently become clearer that my ideas about how Svenska Spel should be operated are not the same as the owner’s. Because of that I, together with the board members, have decided that the best thing to do in this situation is for the board members to find someone to take my place.
In his stead, Treasurer Anders Hägg is serving as the interim CEO. However, Kärrbrink was not the last high ranking executive to exit the Swedish gaming giant. Annica Axelsson – head of the bingo, casino and restaurants division – and Mathias Hedlund, head of internet, telephone and retail betting both stepped down less than 2 weeks after the former CEO’s formal resignation.
This mass exodus is largely seen to be an attempt by Svenska Spel to punish itself enough to bypass the looming European Commission actions. These actions could be as minor as fines or as major as the dissolution of the gaming monopoly itself in favor of a modified free market.
Keying in on the instability of Svenska Spel, international gaming firm, Ladbrokes has begun a series of advertisements that have the Swedish company incensed. The ads feature the slogan “Svenska Spel, Engelska Odds” which translates to “Swedish Games, English Odds.” This ad is a not-so subtle attack on both the controversial odds that Svenska Spel has employed in its games in addition to the authenticity of the company’s name.
Svenska Spel has struck back at Ladbrokes and gone so far as to threaten Ladbrokes with legal action should the ads continue to air in Sweden. Svenska Spel claims that the typeface used in the ads are the same that it uses in its own ads which qualifies it as copyright infringement.
Lasse Dilschmann, CEO of Ladbrokes Scandinavia has responded with the following statement:
For a long time, Svenska Spel has insulted its consumers through an illegal economic monopoly and bad odds. To now try and monopolise the Swedish language is even more disappointing. Svenska Spel should be ashamed.
It is easy to understand why Svenska Spel wants to control the language. When you speak out clearly, it is obvious how bad their offering is. For a state-owned monopoly company I suppose it is natural to try and threaten its competitors into silence.
In sum, Svenska Spel is down at least 3 major executives and facing both impending litigation from the European Union not to mention – for the first time in its existence – the threat of a competitive market.
