The announcement comes after Dagens Nyheter's revelation that Kombispel, a subsidiary of A-lotteriet, which in turn is owned by the Social Democrats, exploits elderly people in aggressive lottery sales via telephone.
At a press conference on Friday afternoon, the Social Democrats' party secretary Tobias Baudin announced that the party no longer has confidence in the board and urged its members to leave their positions.
"I am making my position on Kombispel's board available in accordance with the decisions made by the SSU's executive board and the Social Democrats' executive committee," writes one of them in an email to TV4.
"I believe it is right that other people get to come into the board and look at the situation that has arisen with new eyes," writes the other board member.
On Friday, Baudin announced that Kombispel's CEO Jonas Lindholm is being dismissed with immediate effect. The company's chairman of the board resigned at an extraordinary meeting the same day.
In addition to the two SSU top officials, several prominent Social Democrats sit on Kombispel's board, including party treasurer Joakim Jonsson and Member of Parliament Johan Löfstrand.
The party announced at Friday's press conference that it will stop selling lottery tickets through external companies, but may continue with telephone sales in its own right.