Swedish Gambling Monopoly Reaps 1.4 Billion

Published: Thursday, October 25, 2007 Online-Casinos.com

SWEDISH GAMBLING MONOPOLY REAPS 1.4 BILLION

Massive revenues in third quarter

It's no wonder the Swedish government strives to maintain its monopolistic hold on gambling in the country through Svenske Spel - this week the state owned company reported a stunning SEK 1.4 billion ($215 million) profit in the third quarter of 2007.

The company revealed that Internet gambling, including online poker, grew rapidly during the period. "Gamers choose our secure poker platform over others, which is pleasing," said CEO Jesper Kärrbrink in a statement.

The company's profits rose by SEK 92 million compared to the same period last year. And a third of the increase, SEK 35 million, is attributed to Svenska Spel's internet and telephone operations.

Overall profits for the first three quarters of 2007 are currently running at SEK 4 billion, up 19 percent on 2006.

"The positive pattern is continuing and we expect a record dividend for sports this year," said Kärrbrink.

All business areas had developed well, he added, with Internet bingo doing especially well at 32 percent up during the first nine months. The company's casino operations saw results climb 15 percent - in the third quarter casino takings rose by SEK 44 million.

Svenska Spel was founded in 1996 through the merger of AB Tipstjänst and Svenska Penninglotteriet AB. The merger led to the formation of Sweden's largest gaming company with a market share of the regulated Swedish gaming market of 55 percent in 2006. Svenska Spel is 100 percent owned by the Swedish State.

The Svenska Spel Group comprises the parent company, AB Svenska Spel; its subsidiary, Casino Cosmopol AB; and a sub-group Svenska Spels Förvaltnings AB and its subsidiaries Casino Cosmopols Fastighets AB, Svenska Spels Fastighets AB (sale pending), CC Casino Restaurang AB, AB Svenska Spels Servicecenter and TrissBingo AB.