Svenska Spel Offers Cautionary Tale For Canada
Figures recently released by the company for the first half of 2017 show that it is trailing behind international operators.
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And when duty to country and bankroll collide, bankroll usually wins out. It’s a lesson currently being learned the hard way by Sweden’s monopolistic national online casino provider, Svenska Spel. Figures recently released by the company for the first half of 2017 show that it is trailing behind international operators.
It’s a cautionary tale that Canada’s provincial monopolies should take note of.
Tepid Growth Troublesome
To be fair, Svenska Spel did enjoy some growth during H1 2017. The company was able to pull in nearly $2b, which is no small amount of money. In addition, that total did represent year over year growth of 3%.
The problem comes by way of comparing that performance with other, international (non-Swedish) operators. As a whole, those companies were able to pull in nearly $3b. Given the fact that there are more international operators and only one Svenska Spel, that absolute number is perhaps not troubling in and of itself.
However, what cannot be downplayed is that H1 saw those international operators increase their total profits by 17%. Not only is that 14% more than the national monopoly provider was able to achieve, but it’s also strong evidence that Svenska Spel is losing its competitive edge in the market.
Canadian Provincial Monopolies Take Note
The clear inability of a national monopoly to be competitive with online casinos that must be good enough to compete in the international market is something that Canadian provinces should be taking note of.
Loto-Quebec’s recent financial figures have shown similar difficulties. And while BC’s provincial operator has fared better in recent months, there is no doubt that a monopoly position can hamper adaptation to an online casino scene that is in a huge state of flux right now.
With these new figures showing just how difficult it can be for a nationally run online casino to compete, legislators across Canada’s provinces should be wary If they aren’t careful, market forces could cause serious revenue losses if provincial monopolies don’t remain ready and willing to compete.