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While Svenska Spel’s online gambling operations will join the new competitive market, its land-based operations will remain tax free, as “state-owned games.” Some operators believe this gives it an unfair market advantage. Another Swedish online gambling pioneer, the Kindred Group, has been the loudest voice of dissent and has called for Svenska Spel to be, if not privatized, at least split into two distinct commercial and non-commercial entities. Kindred, which owns the Unibet, LeoVegas, and 32 Red brands, among others, was conspicuous by its absence among yesterday’s license applicants. “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,” said Kindred’s Head of Public Affairs Nordics, Peter Alling, recently. “Here, the government still 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.” Betsson’s CEO Pontus Lindwall struck a more optimistic note in a recent blogpost, however. Sweden is our home turf,” said Lindwall. “We’re a Swedish top company within the industry, and we’ve been in this market for a very long time. I think it’s great that it opens up for regulation and for license applications.” Sweden’s decision to open up its market came after legal threats from the European Union, which contested that the state-owned monopoly violated its rules on the free cross-border movement of services within the trading bloc.
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