Svenska Spel Chief Resigns, Fate of Internationally-Pooled Poker Uncertain

21 April 2008

In a surprise move, Jesper Kärrbrink on Monday resigned as chief executive of Svenska Spel. Mr. Kärrbrink's resignation comes just one week after the installation of Margareta Winberg, a prominent Social Democrat, as chair of the state-owned operator.

"It has become clear lately that my ideas about how Svenska Spel should be run don't agree with the image held by the owners," Mr. Kärrbrink said in a prepared statement carried by The Local, an English-language, Sweden-based online daily.

Ms. Winberg, who also issued a prepared statement, expressed regret over Mr. Kärrbrink's decision, but said he did not share the owners' fundamental attitudes regarding how the company should be managed.

She said the search for a new chief executive is already underway, and that Anders Hägg, the company's treasurer, will serve as interim chief executive.

Mr. Kärrbrink is set to receive severance of 2.88 million Swedish kronor, or $488,277 -- one year's salary -- and has signed a one-year noncompete agreement.

The Local said negotiations regarding Mr. Kärrbrink's future began shortly after Ms. Winberg took up her new post last Wednesday.

In an interview with Interactive Gaming News last week, Ola Wiklund, a partner with Sweden-based law firm Wistrand, called Ms. Winberg's appointment "a clever move" on behalf of the country's coalition government, the Alliance for Sweden.

Mr. Wiklund suggested that within the broader context of social responsibility in domestic politics, the Alliance coalition's appointment of Ms. Winberg means Svenska Spel is likely to curtail expansion plans and make less aggressive its marketing in the run-up to the 2010 general election.

Mr. Kärrbrink told IGN in September 2007 that the company would not expand beyond Sweden.

However, he said it was looking to establish and develop pool co-operations between members of the World Lottery Association and the European Lotteries and Toto Association.

Without the influence of Mr. Kärrbrink, and in light of the Alliance coalition's aim to keep gambling a low-profile item on the domestic political agenda, it remains to be seen whether Svenska Spel's designs on internationally-pooled products -- poker, for example -- will be realized.

Regarding relations with Brussels, the Alliance coalition has until the end of April to respond to the European Commission's January infringement proceeding, which sought information on Svenska Spel's poker products and tournaments.

Mr. Kärrbrink was not immediately available for comment.




Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.