Svenska Spel revenue steady but Q2 profit declines

Swedish state-owned operator Svenska Spel has published its financial results for the second quarter (Q2) and first half (H1) of 2025. While net gaming revenue (NGR) for Q2 remained steady compared to the same period last year, the group reported a notable 17% year-on-year decline in operating profit during the second quarter. The H1 figures paint a more mixed picture, with slight gains in profitability offset by marginal revenue declines, particularly within certain verticals of the business.

Key financial results for Q2 2025

During the second quarter of 2025, Svenska Spel generated net gaming revenue amounting to SEK 1.83 billion, which is roughly equivalent to USD 190 million. This figure represents a flat result when compared to Q2 of the previous year, indicating stability in the operator’s topline performance. However, this flat revenue result was accompanied by a 17% decrease in operating profit, which fell to SEK 545 million from Q2 2024’s total.

The company attributed this downturn in profitability to changes in the Swedish gaming tax framework, although these revisions were only enacted on 1 July 2025, immediately after the close of the second quarter. This timeline raises questions regarding the immediate financial impact of the new tax rate on Q2 results. It is possible that anticipatory adjustments or related operational costs in advance of the tax hike may have affected Q2 profitability.

Moreover, Svenska Spel’s operating margin dropped from 36% in Q2 2024 to 30% in Q2 2025, representing a significant contraction in profitability ratios. This decline signals rising costs, tighter regulatory constraints, or strategic reallocation of resources within the business.

Despite the dip in profits and margin, the company's digital transformation efforts showed progress, with online operations now accounting for 62% of total revenue, up from 60% in the same quarter last year. This growth indicates a shift in consumer behavior and Svenska Spel’s continued success in adapting its business model to meet modern gaming trends.

Performance over the first half of 2025

Looking at the overall performance for the first half of 2025, Svenska Spel reported a modest 1% decrease in net gaming revenue, bringing the total down to SEK 3.69 billion when compared to the same period in 2024. According to the operator, this modest drop was primarily driven by lower revenue from the company’s Vegas Video Lottery Terminals (VLTs) segment, suggesting a weakening of land-based gaming performance in the post-pandemic era.

Nevertheless, operating profit for the first half rose by 2% year-on-year to SEK 1.18 billion, and profit from continuing operations increased slightly to SEK 952 million, up from SEK 944 million in the previous year. This modest improvement suggests that the operator successfully managed to contain costs and drive efficiencies in parts of its operations.

In addition, Svenska Spel’s operating margin improved to 32%, a 1 percentage point increase from the previous year, reinforcing the narrative that the company has maintained some resilience during a period of fluctuating revenues.

Of note is the 6% increase in online sales, which continues to support Svenska Spel’s digital strategy and long-term viability in a sector increasingly reliant on online engagement.

Increased investment activity in 2025

The financial results for H1 2025 show that Svenska Spel significantly increased its investment efforts during the period. The group made 49 investments during Q2 2025, compared to only 21 in Q2 2024. Across H1 2025, Svenska Spel reported 68 investments, representing a significant increase from the 41 investments made during the same period in the previous year.

Although the specific nature of these investments has not been disclosed in detail, the trend suggests the operator is strategically reinvesting in its digital infrastructure, regulatory compliance, and potentially product development, aligning with its long-term goals of customer satisfaction and sustainable growth.

Casino Cosmopol closure and asset divestment

One notable event in the second quarter of 2025 was the permanent closure of the last remaining Casino Cosmopol venue in Stockholm, marking the conclusion of Sweden’s era of state-operated land-based casinos.The decision reflects broader industry trends in Europe where land-based casino operations face growing challenges due to high overheads, changing consumer preferences, and tighter regulatory frameworks.

Svenska Spel is said to be involved in legal discussions regarding the potential sale of its closed Stockholm casino property, though a final deal has yet to be confirmed. The disposal of such a significant asset may have long-term implications for the company's balance sheet and strategic direction.

Regulatory compliance issues and penalty warning

Q2 also saw Svenska Spel face increased regulatory scrutiny. In June 2025, the Swedish courts issued a formal warning and imposed a penalty fee on the company over alleged failures related to duty of care obligations. While specific details surrounding the case have not been made public, it underscores the growing importance of player protection responsibilities within the Swedish gambling framework.

The penalty serves as a warning not only to Svenska Spel but to the broader gambling sector in Sweden, highlighting regulators’ increasing willingness to enforce player protection mandates strictly.

Social responsibility and community contributions

Despite its regulatory challenges, Svenska Spel continues to engage in community-focused initiatives. During Q2 2025, the Swedish Football Association secured SEK 17 million in funding to support projects in vulnerable areas. Svenska Spel played a role in funding these efforts, in line with its stated commitment to corporate social responsibility and its long-standing collaboration with Swedish sports institutions.

Such initiatives are particularly important in reinforcing the company’s reputation and public standing, especially in the wake of regulatory penalties.

CEO comments on strategy and outlook

Commenting on the results, Anna Johnson, President and CEO of Svenska Spel, said:

“We have a clear focus on the Group’s strategic goals: to have the most satisfied customers in the gaming market, to ensure that our customers play healthily with us, and to drive long-term sustainable growth. Within the first two target areas, the customer satisfaction index and the share of healthy revenues are at a stable and high level. In terms of sustainable growth, net gaming revenues for both Eurojackpot and Oddset increased during the quarter.”

Her remarks suggest that while certain segments face downward pressures, others—such as Eurojackpot and Oddset—continue to deliver revenue growth, supporting the firm’s efforts to balance its portfolio and mitigate sector-specific risks.

Market outlook and strategic considerations

Looking forward, Svenska Spel will likely continue to prioritize its digital transformation strategy, with additional investments expected in online product innovation, platform stability, and customer experience. At the same time, rising regulatory costs and changing tax frameworks present risks that the operator must navigate carefully.

While the closure of Casino Cosmopol indicates a step back from traditional retail operations, it also enables Svenska Spel to streamline its business and reallocate resources toward more profitable and scalable online verticals. The company’s increasing focus on responsible gambling, particularly in response to regulatory expectations, is expected to remain central to its corporate strategy moving into the second half of the year.

Conclusion

Svenska Spel’s Q2 and H1 2025 financial results reflect a business in transition, navigating the challenges of evolving tax structures, shifting consumer behavior, and heightened regulatory scrutiny. While the second quarter posed difficulties—most notably a 17% drop in profit—the broader half-year figures show relative stability, with modest gains in operating profit and continued growth in the company’s online segment.

The closure of Casino Cosmopol and increased investment activity signal a strategic pivot away from traditional land-based gaming toward a more agile, digital-first business model. At the same time, regulatory pressures, including penalties for duty of care, underscore the importance of compliance and responsible gambling frameworks for operators in today’s tightening legislative environment.

As Svenska Spel adjusts its operations to maintain competitiveness and relevance in a maturing market, the company’s long-term focus on sustainability, customer satisfaction, and digital innovation will be critical. The coming months will test its ability to adapt while maintaining profitability and public trust in an increasingly complex regulatory and commercial landscape.

FAQs

What was Svenska Spel’s revenue in Q2 2025?
Svenska Spel reported SEK 1.83 billion in net gaming revenue for the second quarter of 2025, maintaining the same level as Q2 2024.

Why did Svenska Spel's Q2 profit decline?
The company attributed the 17% year-on-year profit drop to anticipated impacts from an increase in Swedish gaming taxes and other operational factors.

How did Svenska Spel perform in H1 2025 overall?
In the first half of 2025, revenue declined slightly by 1%, but profit rose by 2% year-on-year, indicating moderate stability in operations.

What caused the decline in revenue from the Vegas VLT segment?
Svenska Spel pointed to lower consumer activity and shifting player preferences away from land-based terminals as primary factors.

How is Svenska Spel’s online business performing?
Online operations grew by 6% during H1 2025 and accounted for 62% of Q2 revenue, highlighting ongoing digital success.

What is the status of Casino Cosmopol in Stockholm?
The Stockholm location has been permanently closed, and the property is currently subject to legal negotiations for sale.

Was Svenska Spel penalized by regulators recently?
Yes, the Swedish court issued a warning and financial penalty over alleged shortcomings in Svenska Spel’s duty of care obligations.

What investments has Svenska Spel made recently?
The company increased its investment activity significantly in 2025, with 49 investments in Q2 alone, up from 21 in the previous year.

What social initiatives has Svenska Spel supported in 2025?
Svenska Spel contributed to a SEK 17 million initiative with the Swedish Football Association aimed at supporting vulnerable communities.

What are Svenska Spel’s strategic priorities?
The company focuses on customer satisfaction, responsible gambling, and sustainable growth, with a growing emphasis on online operations.