Writing in an editorial for the Swedish news outlet Dagens Industri, Hoffstedt criticized the Swedish government’s decision to transfer ownership of the vehicle inspection company Bilprovningen to TÜV Rheinland, a German testing service, while maintaining control over the state monopoly gambling operator, Svenska Spel.
Hoffstedt pointed out Swedish Finance Minister Elisabeth Svantesson’s recent remarks, where she expressed uncertainty over the need for state ownership of Bilprovningen. Svantesson suggested that the government should focus on regulating and overseeing the market rather than owning entities within it.
He urged the government to apply the same reasoning to Svenska Spel and consider selling it to a private investor. “Bilprovningen and Svenska Spel are among the few state-owned enterprises that are inappropriate for state ownership, given that they operate in competitive markets alongside private businesses. The state is tasked with regulating both its own company and others,” Hoffstedt stated.
As the leader of BOS, Hoffstedt has consistently argued against Sweden’s gambling monopoly since the market became more open in 2019. He told iGB in October that a state monopoly in the commercial gambling sector creates significant conflicts of interest, which are avoidable if private companies conduct business and governments regulate it, as is typical in Western societies. He noted that Nordic countries tend to have the government playing a significant role as a commercial entity.
### Hoffstedt – Being Both a Player and a Judge Is Problematic
In his op-ed, Hoffstedt elaborated on the conflicting dynamics inherent in the government’s dual role in regulating and participating in the gambling market. He equated this to playing and refereeing in the same game, which he argued leads to a loss of trust in the state’s impartiality.
He also warned that any scandal involving the company could tarnish the government’s reputation, pointing out that Svenska Spel has accrued over SEK100 million in fines from regulators throughout 2024.
Hoffstedt expressed concern about the potential issues arising from Svenska Spel or its representatives participating in parliamentary discussions on gambling regulation. “In a democracy, the government and parliament should dictate the actions of Svenska Spel, not the other way around,” he argued.
### Historical Calls for Svenska Spel’s Privatization
In parliamentary discussions, both of the most influential parties, the Moderates and the Sweden Democrats, have shown support for the privatization of Svenska Spel. During the 2022 election period, both parties vowed to divest the state’s stake in Svenska Spel, although the topic has lost traction recently.
However, Hoffstedt argued that the recent sale of Bilprovningen indicates that the government might be ready to divest other state-held assets. “The sale reflects the government’s readiness to transform words into deeds,” he remarked, urging not to delay Svenska Spel’s privatization. He stressed the importance of conducting the sale following all protocols to maximize revenue, which could be redirected toward vital government initiatives like infrastructure improvements.
