Svenska Spel ramps up digital growth as Vegas division stumbles

(AsiaGameHub) –   Svenska Spel experienced a robust trading quarter, with its online division’s expansion and the steady performance of its Lotto and Oddset brands contributing to a 2% rise in the Swedish group’s overall net gaming revenue (NGR).

In its interim results for January–March 2026, Svenska Spel reported that NGR reached SEK 1.88bn (£150.4m) for the quarter, an increase of SEK 30m compared to the same period last year.

Svenska Spel’s total operating profit for Q1 2026 stood at SEK 659m, marking an increase of SEK 25m, approximately 4%.

Sports and casino drive Q1 growth

The operator saw its most significant growth in the Sports and Casino segments, with NGR for these divisions up by 3%.

While the Oddset brand was the primary driver of this growth, Svenska Spel also highlighted the positive impact of the Winter Olympics on betting volume, noting increased customer activity and higher average bets per customer.

Anna Johnson, President and Chief Executive Officer of Svenska Spel, commented: “We have high ambitions for 2026, and one of our priorities is sustainable growth with a focus on our strong products. It is therefore positive that the year begins with growth in line with the market, with the product brands as the driving force.”

Sports betting was not the only area to show growth during the quarter. Svenska Spel also reported an increase in both activity and player volume for its casino and lottery games division.

This translated to a 2% increase in NGR for the Luck Division, indicating a favorable outcome for Svenska Spel in Q1.

The boost in performance was also evident across Svenska Spel’s Lotto brand. However, this was somewhat tempered by jackpot levels not reaching the same heights as the previous year.

During the trading quarter, operating margins also improved, rising from 34% to 35%. It is worth noting that achieving organic growth in mature, highly regulated markets like Sweden presents a considerable challenge.

Svenska Spel has managed to achieve this modest growth by maintaining relatively flat overall costs as its NGR continues to increase.

This growth is a notable achievement for a Swedish company in the gambling industry, especially when contrasted with revenue declines reported by several other Stockholm-listed companies, including Betsson, Evolution, and Kambi, in their recent financial results.

As the Swedish operator continues to channel its revenue through its digital channels, which now represent 67% of total revenue, it is clear that Svenska Spel has moved beyond the initial heavy investment phase of its digital transformation and is now focused on optimizing growth.

Land-based operations face challenges

Conversely, Svenska Spel’s land-based operations did not experience the same positive trends as its online counterparts, with its Vegas division facing a significant decline in Q1 2026.

With a 17% decrease in NGR compared to the previous year, Svenska Spel has already implemented cost-saving measures to counteract the trend of players increasingly opting for online gaming.

While the initial NGR declines may raise concerns, they are not entirely unexpected. Svenska Spel has been managing the reduction of its physical presence in Sweden for some time, as evidenced by the closure of its Casino Cosmopol properties.

Following the closure of its final property in April 2025, Svenska Spel stated: “Casino Cosmopol has had declining profitability and visitor numbers for several years, as more and more people choose to play casino online. To limit losses, the casino in Sundsvall was closed in 2020, in February 2024 the casinos in Gothenburg and Malmö were closed and now Stockholm has also closed.”

It is anticipated that Svenska Spel will continue its strategic shift away from retail and towards online operations, prioritizing “profitable business partners” in 2026 and beyond.

Channelisation remains a key concern

Eight years after Sweden introduced gambling regulations, the market continues to grapple with the persistent presence of unlicensed operators, particularly in the online casino sector.

In its interim report, Svenska Spel highlighted that channelisation remains a “central issue” for the market’s development, especially in a context of “tough competition” within the regulated market.

With 134,500 players registered via Spelpaus, a “clear increase” from the previous year, the Swedish operator indicated that responsible gambling will continue to be a significant priority for the broader industry.

In addition to responsible gambling, developments in Finland have also been identified as a potential influence on the Swedish market’s trajectory.

The interim report noted: “In Finland, the licensing process has now begun ahead of the upcoming reregulation of the gambling market, and applications for licenses under the new Gambling Act could be submitted from March 2026. This marks a clear step from political direction to actual market opening and is expected to gradually affect competition in the Nordic countries in the coming years. Overall, developments indicate that the gaming industry will increasingly be characterised by the ability to put decisions into practice, clearer regulation and intensified competition in already mature markets.”