Digitain

The casino and sports betting platform provider has recruited Simon Westbury as its head of international business development, bringing a wealth of experience to the role.

Expressing delight to be joining the firm as well as excitement at “ambitious expansion plans,” Westbury’s most recent role was as CCO of VSoftCo where he was responsible for growing the firm’s customer base, strengthening relationships with partners and elevating the brand to become a stand-alone leading supplier within the virtual sports space. 

Suren Khachatryan, CCO at Digitain, said of the appointment: “His proven ability to work with a wide range of commercial stakeholders, as well as his deep understanding of global markets, makes him a perfect fit for us. I’m very confident that he will play a major role in helping us achieve our growth targets and contribute to our success for many years to come.” 

Svenska Spel

Eva Stoppel is to take up the role of CFO at Swedish state-owned gambling operator Svenska Spel, and will formally assume the position on Sunday September 1, 2019.

Forming a part of group management and reporting to the CEO, Stoppel joins from Swedbank after a long career in the Bonnier Group that included being investment director at Bonnier AB, and CFO of Bonnier News, Daily News and Scribona Sverige.

Patrik Hofbauer, president and CEO at Svenska Spel, commented: “I am very happy to welcome Eva Stoppel to Svenska Spel. In addition to her extensive experience as CFO she has valuable expertise in business development and change management. 

“She also has knowledge of digital transformation, something that will be a great asset for us. With Eva, we get a CFO who has all these key elements and who also knows how it is to work in regulated and highly competitive industries”

Of the appointment Stoppel added: “I am very pleased to be entrusted with responsibility for the finance and business support function for Svenska Spel. I hope to contribute with my experience in charge of management and digital transformation in other competitive industries”

Helio Gaming

Lottery games provider Helio Gaming has strengthened its operational arm, with the appointment of Keith Galea as chief operating officer.

Bringing a “demonstrable track record of operational success,” Galea joins Helio from Bit8 where he occupied the chief product officer position, but despite the new role will maintain his position of managing director at his consultancy firm Consult Labs.

Richard Mifsud, CEO at Helio Gaming, stated: “We’re delighted to announce the appointment of Keith as COO. Having invested in Helio Gaming, he understands how we work, and the experience he offers will take us to the next level.

“The addition of Keith will play a major role in helping us achieve our growth targets, and be an important member of the team for many years to come.

Okto Group

Okto Group, the financial technology provider, has appointed Simon Dorsen as director of gaming as it strives to consolidate its presence and drive its growth in the industry.

Set to be supported by “a growing team of gaming experts,” Dorsen joins as the firm sets a vision to gamify the payment experience, and establishing Okto “as the true player’s wallet”.

Filippos Antonopoulos, co-founder of Okto, said of the appointment: “Simon is an industry veteran with a gamer’s heart and the entrepreneurial spirit to drive growth and positive disruption in our industry. We welcome him with delight.

“We have been tailoring our market-leading payments and financial ecosystem to the gaming industry to provide a full-service payments and fintech model. Simon’s proven ability across a wide range of well-known gaming suppliers and operators, as well as his deep understanding of the technology behind it, makes him a perfect fit.

“I firmly believe that he will play a major role in successfully growing our gaming business.”

Bringing 16 years experience across the gaming and payment sectors, Dorsen has previously held senior roles with Trustly, GTech and IGT, where he is credited with establishing the company’s first omni-channel sales team.

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After informing the board of his decision to exit the company, a process has subsequently commenced to name a permanent successor.

Hofbauer will officially leave Svenska Spel on January 1, 2024, before taking up his new assignment one day later. 

“Through his solid knowledge, great commitment and brilliant leadership qualities, Patrik Hofbauer has successfully led Svenska Spel during a time of major changes for the company,” commented Erik Strand, Chair of the Board Svenska Spel. 

“Svenska Spel is today a modern company that delivers sustainable gaming experiences. Patrik’s personal leadership has navigated Svenska Spel through the reregulation of the gaming market in 2019 and he, together with the board and his team, has set a clear future agenda and strategy. 

“Patrik is a person and company leader who makes a real difference and on behalf of the board I would like to extend a warm and big thank you to him for his valuable contribution to Svenska Spel.”

Upon leaving the online casino and sports betting operator, Hofbauer will draw the curtain on a new five year stint at the former Swedish monopoly. 

Earlier this year, Svenska Spel reported a digital driven first half of the year, with the group’s online division helping to offset struggles witnessed in the retail casino and slots segments.

Hofbauer stressed an ongoing ambition of “simplifying and enhancing the gaming experience for customers”, as the group reported that net gaming revenue remained largely stable at SEK 1.97bn (2022: SEK 1.963). Operating profit increased three percentage points to SEK 550m (2022: SEK 531m).

“In recent years, I have had the privilege of leading the Svenska Spel. It has been a fantastic journey together with our customers, partners and, not least, employees,” Hofbauer reflected. 

“It is not an easy decision to change roles or leave a company that I value so deeply. With a strong culture, a clear values ​​compass and enormously committed employees and leaders, Svenska Spel is in a position to continue delivering value for our customers, Sweden and the Swedish sports movement.”

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Added on top of the SEK 60m injected since 2010, Svenska Spel will continue to finance the work of the independent research council and Anders Håkansson‘s gaming professorship at Lund University until 2027.

In total, just over SEK 42m will be set aside for the support. Of these funds, SEK 25m is earmarked for research grants.

Sara Lindholm, Chairwoman of the Research Council, noted that social community efforts and addiction care “need the right tools at the right time”.

She added: “The long-term investment in research on gambling contributes to knowledge of effective methods for preventing and treating gambling addiction. To develop the right interventions for those who need it most requires patience, commitment and research at the forefront.”

The Research Council was formed in 2010 with the aim of increasing knowledge and insight into gambling problems and how best to prevent them.

Moreover, the council consists of experienced researchers and representatives from various societal interests and acts independently – without interference from Svenska Spel. The company also noted that it will set aside SEK 8.5m annually for funding the research work.

Patrik Hofbauer, President and CEO of Svenska Spel, stated: “The Research Council has been a driving force and a central part in establishing the research field around gambling problems in Sweden. 

“There are still many unanswered questions about how best to prevent and treat gambling addiction. With that in mind, our continued support feels right both from a business and a humanitarian perspective.

“Our research is about making early discoveries when it comes to gambling problems. The investment means that we can deepen and strengthen that work,” concluded Håkansson.

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Overall, the group’s revenue during both the three months and six month timeframes increased by one per cent, but operating profit fell by seven per cent and four per cent respectively. 

Publishing its interim update, the group revealed revenues of SEK 3,898m (€369.5m) in H1, up from SEK 3,939m (€373.1m) the previous year, and SEK 1,963m (€3.03m) during Q2, up from SEK 1,938m (€3.02m) in the corresponding quarter in 2021. 

Svenska Spel attributed the 1 per cent year-on-year increase to the closure of casinos during the second quarter of 2021, but despite this small revenue raise operating profit declined during both Q2 and H1 as a whole. 

Operating profit from January to June 2022 fell from SEK 1,171m (€111m) to SEK 1,127m ((€106.8m) with a margin of 29 per cent, and during the second quarter from SEK 574m (€54.4m) to SEK 531m (€50.3m), with an operating margin of 27 per cent.

Svenska Spel asserted that this was due to higher costs across its operations, including investment in product development and technology, although the group did praise an increase in the number of ‘healthy revenues and healthy customers’ during the quarter.

Patrik Hofbauer, President and CEO of Svenska Spel, said: “We see a positive development in the share of healthy income as a result of our strengthened gaming responsibility measures,

“We continue to provide our customers with entertaining gaming experiences in a responsible way, as we want gaming to be a joy for everyone.”

A breakdown of product verticals saw further decline for positive trading for the Casino Cosmopol and Vegas brand, recording a revenue increase of 95 per cent – although again, Svenksa Spel pointed out that this was largely due to the closure of all three Casino Cosmopols during the pandemic.

The Sport and Casino business, on the other hand, encountered more difficulties, with revenue falling by 19 per cent during the second quarter due to ‘strong comparative figures’ with the UEFA 2020 Euros taking place last year.

A notable development for the division, however, was the signing of a three-year agreement with Svensk Travsport to provide ‘good conditions for developing a complete offer of Swedish trotting to customers’.

Additionally, Svenksa Spel also underscored that investment in strengthened responsible gambling measures had a ‘negative effect on revenues’ during the quarter, despite the positive impact on ‘sound revenues and customers’.

Lastly, trading for the Tur business remained steady, with net gaming revenue standing at the same level as Q2 2021, whilst the group highlighted the success of the launch of two draws per week for the Eurojackpot product, which reached its ‘highest record’ for online gaming.

Moving forward, the operator remained confident in the positive impacts of legislative changes in Sweden, following the government submission of a bill for stricter gaming regulations to the parliament in May.

Expected to come into force on 1 July 2023, the Bill contains provisions for consumer protection and a long-term sustainable gaming market, as well as measures against match-fixing and illegal unlicensed betting.

“These proposals are something we at Svenska Spel view positively and are in line with our work for a healthy and sustainable gaming market,” Hofbauer commented.

However, the firm also noted some difficulties on the horizon, notably due to ‘uncertainties in the rest of the world’ across multiple financial markets, which are expected to have a negative impact on consumption.  

“Higher prices are expected in the coming years,” Hofbauer continued. “It will hit consumption, which is expected to decrease, and we will see re-prioritization in the economy among consumers. 

“How it will affect the gaming market and consumers’ entertainment wallets in the short and long term is currently uncertain. Despite this, growth is estimated at three percent in the total gaming market in Sweden for 2022 and two percent for 2023. Going forward, the trend will continue with online games, fast games and casino games.”

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The comments come on the group’s corporate blog and follow past statements that the venues are a “black hole” due what was dubbed as a “remarkable” lack of requirements and control.

“A gambling addict can easily play in a restaurant environment in Sweden. For almost SEK 1,000 per minute,” Hofbauer begins. “And those who want to launder money also have a shortcut served in the worst case.”

Adding: “We do not mind the concept, on the contrary, diversity delights. But why should there be different rules of the game?”

Stating that there are currently an estimated 375 permits for such establishments across the nation, Hofbauer slams a lack of statistics regarding “help-seeking players who play restaurant casinos because it is not in the authorities’ official data.

“Those who develop a gambling problem often become ‘mixed addicts’ and gamble on several forms of gambling and with several gambling companies. 

“It is not unlikely that the same pattern is found in the guests of restaurant casinos. And without control – no control.”

Through the first quarter of the current year restaurant casinos closing the period with revenue down 37 per cent to SEK 39m (2021: SEK 62m), as the country’s total industry scored a 4.45 per cent uptick to SEK 6.46bn (£522.63m) from SEK 6.18bn.

“With the new gaming law, the wagering limit on blackjack more than tripled, from a maximum of SEK 75 to SEK 236 per hand,” he resumed by criticising the volume and speed in which consumers can spend.

“May sound a little, but you can easily get rid of a thousand bucks a minute with those conditions. A high roller is not content to play just one hand or one chip.” 

Continuing: “The same law that would create order and order thus contributed at the other end to reducing the check and responsibility for certain high-risk games. The law exists, but restaurant casinos have carte blanche. 

“To simplify for restaurants, they were simply exempted from the regulations that all other gaming activities must follow. This is despite the fact that blackjack and roulette are games with a short time between bet and result, one of the risk factors for gambling problems.

“A gambling addict can thus play without problems in a restaurant environment in Sweden. For almost SEK 1,000 per minute. You can even take out a quick loan to play.”

To conclude, Hofbauer notes that the wish list contains only one requirement and wish: “Away with the exception! Honest business can withstand scrutiny and equal rules of the game. 

“Remove the exemptions from complying with the law on duty of care and money laundering. Open cards – for the sake of consumers.”

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In the statement, Hofbauer emphasised that the decision to ‘stop online casino advertising across all media channels’ has been made by Svenska Spel’s executive team following ‘intensive internal discussions’.

The move comes as a bid to support the Swedish Health Authority in their campaigns to prevent problem gambling, with the online casino sector considered to be a significant industry outlier according to Hofbauer’s statement.

Pointing to recent Public Health statistics, Hofbauer notes that ‘30% of online casino players detail problems managing their online gaming habits’, a figure that according to the Svenska Spel CEO is notable in comparison to other online gambling verticals.

He added that  Swedish gambling helpline ‘Stödlinjens paints a clear picture’ when its 2018 figures demonstrate  ‘over 60% of callers indicate online casino as their main source of problems’.

“These are facts that we discussed at Svenska Spel last week and that made us put down our foot. Our online casino advertising already had a restrictive design, but now we choose to completely stop advertising for the rest of the year.”

Overall Swedish Public Health statistics have detailed, however, that overall levels of problem gambling has decreased in the last three years which may result in objections to the Svenska Spel decision.

Concluding his statement. Hofbauer called for Swedish industry leaders to follow in Svenska Spel’s footsteps by setting out advertising limits.

“If you are serious about taking responsibility, then you should address the problems where the problems exist, even if it strikes the revenue in the short term,” he added. “In the long term, this is the only sustainable one. It is also only when we can improve the industry’s reputation.”

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The new seven-year agreement alongside the SOK is to take effect from today (Monday 1 July) and is worth in excess of SEK 100m (£8.5m), and includes a targeted investment in the committee’s various talent programs. 

Patrik Hofbauer, Svenska Spel’s president and CEO, explained: “As the country’s largest sports sponsor, it feels exciting to start a collaboration with SOK and our Olympic athletes. We want to be involved and contribute to making Swedish Olympians even more successful and we will do everything possible to support the best possible conditions.

“We hope that the cooperation can inspire more children and young people to get moving, this is an issue we are passionate about. SOK’s way of working with inclusion and development of sport to inspire more young people to find their sport is in line with how Svenska Spel sees sport. We want it to be open, inclusive and equal.”

Peter Reinebo, head of the Swedish Olympic Committee, added: “Svenska Spel has for a long time been an important partner for Swedish sports. The agreement gives Sweden’s Olympic Committee and our Olympic athletes even better conditions for achieving competitive results in the long term.”

Furthermore, the operator has also aligned with the Swedish Ski Association, also entering a seven-year deal that is worth a little over SEK 80m (£6.8m) and contains a pledge to include additional investment to aid in the development of young talent.

Ola Strömberg, head of the Swedish Ski Association, commented: “Svenska Spel has a long-standing and great commitment to Swedish sports. Therefore, it feels very good to start a collaboration that gives the national team new opportunities. In Svenska Spel we get a partner who will do everything possible to create the right conditions.

“Our national team fans are happy that we can now start a collaboration with Svenska Spel. We know that Svenska Spel is working hard to get more children and young people in motion and that is something that even the active ones are passionate about. With a strong partner we get even better opportunity to reach out and inspire more people.”

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The group’s digital business increased 14 per cent year-on-year with revenues via mobile phones shown to have had a 21 per cent jump, with digital sales now said to contribute a total of 36 per cent of the business.

Net gaming revenue decreased 6 per cent for the January to March period, coming in at SEK 2.05bn (£167.3m) from SEK 2.18bn (£177.7m), with gaming and income tax of SEK 510m (£41.4m) said to have had a significant effect on operating income, earnings and operating margin.

Operating profit for Svenska Spel regarding the first quarter decreased SEK 624m (£50.7m) to SEK 519m (£42.2m) from SEK 1.1bn (£89.4m), of which SEK 401m (£32.6m) composed of gaming tax.

The Visby-based firm saw a four per cent gain within its sport and casino business area, which operates commercial online gaming and betting and includes its horseracing option that launched in Q1, while its land-based Casino Cosmopol and Vegas VLT segment dropped 17 per cent.

Patrik Hofbauer, president and CEO of Svenska Spel, commented: “We are satisfied with the results based on the conditions. The transition to a new gaming market has entailed a major transition of Svenska Spel, with the adaptation of the group to the new gaming regulation and competition law.

“As a result, among other things, the sports and casino business area had to build up a new customer database, completely separated from the rest of the group, and that due to the division of our products, we completed a successful combination offer such as Saturday candy. These are two examples of measures that have affected the result.”

Adding: “Now we are finally up and running with the new Svenska Spel in a re-regulated gaming market. During the first quarter, we show that we are stable as the entire Swedish people’s gaming company. Our focus ahead is to further strengthen our products and services to give our customers even better experiences, but with continued consideration of our customers.”

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Net gaming revenue for the year’s final quarter came in at SEK 2.3bn, a 3.7 per cent reduction, helping to FY figures of SEK 8.7bn, representing a 2.2 per cent drop.

Despite this, in its Q4 and year end report Svenska Spel has seen a positive uptick of net gaming revenue online, increasing 14 and 20 per cent respectively, with sales via mobile phone largely responsible, with a 26 per cent Q4 boost nudging its year long increase to 39 per cent.

Svenska Spel, whose land-based Casino Cosmopol subsidiary is appealing a SEK 8m ($880,00) fine imposed by the renamed regulator Spelinspektionen, also saw operating profit for the quarter fall 3.1 per cent to SEK 1.2bn.

On a full year basis operating profit decreased 3.8 per cent, dipping to SEK 4.5bn from the previous year’s SEK 4.7bn.

Decreasing revenues from VLT’s, which dropped 15 and 20 per cent for Q4 and FY, in addition to non-recurring costs related to the conversion of the group to Sweden’s new gaming market and GDPR, are the primarily issues for the lower earnings, states the organisation.

Costs of conversion during the fourth quarter came in at SEK 78m, whilst for the January to December period that rose to SEK 186m.

Patrik Hofbauer, president and CEO of Svenska Spel, said of the groups performance: “During the quarter, we made the final preparations for the new gaming market. There has been a huge effort in a short time with the adjustment of operations by dividing including our IT systems, customer databases and reorganisation of the group into three business areas – all to ensure that we comply with the new gaming regulation and competition law.

“This is in parallel with the day-to-day operations, and that we are preparing for the launch of games within completely new segments.”

Adding: “In the new gaming market, Svenska Spel will continue to do what has made us the entire Swedish people’s gaming company with beloved brands, a wide range and strong consumer protection. But we will also give the Swedish people completely new gaming experiences in our way – aggressively and thoughtfully.”

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The Swedish gambling operator has enjoyed main sponsorship for in excess of 20 years, with the collaboration including the Hockey Academy, which is the country’s development program up to the junior national teams.

Patrik Hofbauer, CEO of Svenska Spel, praised the agreement extension: “Svenska Spel and the Swedish Ice Hockey Association has a long and successful history together. Through the extension of the agreement, we can continue to create the right conditions for Swedish hockey to continue their fine development.”

Adding: “Ice hockey is one of our most popular sports, and every year our national teams stand for fantastic action. The collaboration enables us to participate in the development of Swedish ice hockey all the way, from the very smallest in Hockey School, to our popular national team on the women’s and men’s side.”

The new agreement comes into force in July of this year and, including option years, is worth in excess of SEK 200m, in addition to a championship bonus, which is the same for the men’s and women’s national sides, and amounts to a maximum of SEK 1.5m if both win World Cup gold.

Tommy Boustedt, secretary general of the Swedish Ice Hockey Association, explained: “We are very pleased that our long-term cooperation with Svenska Spel continues. The long-term sustainability of Svenska Spel’s commitment means a great deal, and gives us the opportunity to realise our vision of becoming the best at all levels, making ice hockey accessible to more and being Sweden’s most engaging sport.

“Svenska Spel also cares for the sport and conducts its business with a high degree of gaming responsibility, which is important for us at a new license market.”

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