Is Privatization in the Works for Sweden’s State Monopoly?

Sweden has had some problems with having policies contrary to the EU’s pro-competition policy in regards to the state gambling monopoly, Svenska Spel. According to Finance Minister Anders Borg, it is possible that part of Svenska Spel will be sold to private concerns in the near future.

If true, the state will probably sell the parts of the gambling monopoly that are hardest to defend to the EU. They are investigating the possibility of selling different aspects of the business and are looking into the effects on consumers of such a sale. They have a commission examining the situation and are looking for the safe game areas of the monopoly. Once it defines what parts constitute safe games, then those parts would be offered for sale as soon as possible.

In addition to considering European law, they also have to consider the need for social responsibility and the funding of social programs and the impact such a sale would have in these areas. Privatization of parts of Svenska Spel would obviously change the structure of the company.

The commission report is not due until the end of this year, so the earliest that any changes would take place would be in early 2009.

Posted: May 25, 2008

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