Even though Svenska Spel is the state-owned gambling operator in Sweden, the company can activate an additional financial option to help the country. Login Casino follows the most interesting finance news in gambling, describing a unique case from the Scandinavian country.
Svenska Spel's board of directors made an interesting claim a few days ago. Thus, they suggested paying €315M (3.2B SEK) as dividends to the Swedish treasury due to the company's financial growth in the latest couple of months.
How can state-owned companies give extra cash to treasury?
The answer lies in the plane of the term "dividends." The firms often use this phenomenon to benefit their shareholders when the company reports profits during the year. Interestingly, paying dividends isn't the obligatory option for the firm as it can use that extra money for developing or increasing internal capital.
While Svenska Spel is working under the state's ruling, it can use part of the profits for investing in further development or pay dividends. The regarded case is the representation of the second option when the board of directors has decided to contribute money to the Swedish treasury directly without using them in other useful directions.
What is Svenska Spel’s position in Swedish gambling market?
Even though the regarded Scandinavian country opened the gambling market for private operators in 2019, Svenska Spel is still the leader in the sector, holding more than half of the market. While the first half of 2020 was rather tough due to the coronavirus outbreak, the second one was rather profitable (with €767M in net gaming revenue) and even allowed the directors to review the issue of paying dividends to the treasury.