Social Democrats Sell Lottery Business Amid Criticism and New Tax

The Social Democratic Party is selling its criticized lottery business, Kombispel. It is due to the government's new opposition tax, says the Social Democratic Party's party secretary Tobias Baudin.

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Social Democrats Sell Lottery Business Amid Criticism and New Tax
Photo: Jessica Gow/TT

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The reason for the sale, which was first reported by Svenska Dagbladet, is that it is no longer economically sustainable to continue operating the business.

Last winter, the government decided that gaming tax from 2026 will also apply to party lotteries. The decision was criticized by The Moderate Party, which already then flagged that it would make it difficult for the party to continue conducting lottery business.

We have to pay very large sums to keep the lottery and it just can't be done. And what was revealed in the media's investigation, we took care of it directly: kicked out the CEO, replaced the entire board and decided to never again use external telemarketing companies, says Tobias Baudin.

”A major setback”

Kombispel was sentenced in May to three million kronor in fines after violating the Gaming Act. According to the verdict, they sold, through the telemarketing company Effective Communication, lottery tickets to mainly elderly people who probably did not understand the terms of purchase.

The lottery has been a major source of income for The Moderate Party and the youth association SSU.

Of course, it's a major setback, we've had a lottery since 1956. It's because we think you have to stand on two legs, not just be dependent on tax funds, says Baudin.

The fund is replenished

Now, however, The Moderate Party is replenishing its party fund through the sale, which amounts to 57.5 million kronor.

But in the long term, we will probably work with completely different sources of income. Olof Palme started a campaign fund in the mid-70s.

He thinks overall that the government is trying to silence the opposition.

Ulf Kristersson and Jimmie Åkesson are using government power to attack the large opposition party with the stated purpose of reducing our funding. It's regrettable.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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