Hoffstedt contends that the existing setup conflicts with the government’s regulatory duty and that the country shouldn’t be in charge of managing a gambling enterprise.
The controversy over the state ownership of Svenska Spel, Sweden’s state-owned gambling operator, has been rekindled by Gustaf Hoffstedt, the chairman of the Swedish Trade Association for Online Gambling (BOS).
State ownership in a competitive market undermines the government’s impartiality, hence Hoffstedt says the Swedish government should sell its share in Svenska Spel.
The Government Connections of Svenska Spel Are a Net Negative
Hoffstedt highlights the obvious conflict of interest that arises when the government runs a gambling business while also overseeing the whole sector in an interview with the Swedish media site Dagens industry.
He contends that this dual position runs the danger of eroding public confidence in the government as an unbiased law enforcement agency. He emphasized how challenging it is to maintain equity in the gaming industry when the government serves as both a rival and a referee.
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The president of the BOS questioned Svenska Spel’s compliance record as well, pointing out that Spelinspektionen, Sweden’s gaming authority, had fined the company more than SEK 100 million ($9.19 million) this year alone.
He pointed out that these penalties, which result from breaking the Gambling Act, damage state-owned businesses’ reputations as role models for private rivals.
“One of the few state properties that is especially inappropriate for the state to own is Svenska Spel.”
Hoffstedt, Gustaf, secretary general of the BOS
Furthermore, Hoffstedt cautioned that the government’s credibility may be seriously harmed by a possible significant scandal at Svenska Spel. Such weaknesses are highlighted by recent anomalies in Sweden’s gambling industry, such as unlawful advertising tactics, which leads Hoffstedt to conclude that a major scandal involving the operator is imminent.
All Parties Could Gain from a Divestment
Hoffstedt also criticized Svenska Spel for influencing public opinion on gaming control. He maintained that the company’s participation skews democratic processes by giving it the ability to sway lawmakers to put its interests ahead of more general social issues. According to Hoffstedt, Svenska Spel was essentially dictating the government’s policy rather than the other way around.
The two biggest parties in Sweden’s government coalition, the Moderate Party and the Sweden Democrats, have both previously stated their support for the privatization of Svenska Spel. Hoffstedt concurred, stating that divestiture would allow the government to focus on its primary duties of drafting legislation and monitoring adherence. In the meanwhile, the sale’s revenues may be used to pay for important infrastructure and other public needs projects.
With Svenska Spel’s divestiture, there is no reason to wait any longer. Everyone would benefit from it.
Gustaf Hoffstedt, BOS secretary general
Hoffstedt acknowledged Svenska Spel’s efforts to promote responsible gambling, but contended that private operators may just as easily uphold high moral standards in the presence of strict regulations. The conflict between state ownership and the ideals of a free market economy is highlighted by Hoffstedt’s demand for divestiture.
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