A growing scandal surrounding the lottery operations of the Social Democrats in Sweden has prompted regulatory action, as authorities begin to investigate troubling revelations about aggressive sales tactics. The scandal threatens to financially cripple the Social Democrats, as the government reconsiders banning party-run lotteries.
Preying on the elderly
The controversial lottery is operated by Kombispel, a company owned by the Social Democrats, which handles day-to-day operations on behalf of three key party-affiliated groups: the Social Democratic Workers’ Party (SAP), the Swedish Social Democratic Youth League (SSU), and the Social Democratic Women’s Association (S-Kvinnor).
The scandal was triggered by Dagens Nyheter’s revelations that a telemarketing firm employed by Kombispel had engaged in deceptive practices, especially targeting vulnerable elderly individuals. These sales agents, many operating out of Spain, reportedly pushed confused people into subscribing to lotteries without fully disclosing the terms, including automatic renewals.
Political implications
The fallout from the lottery scandal could have severe political consequences for the Social Democrats, who rely heavily on their lottery operations for funding. While other parties can run lotteries as a way to obtain funding, the Social Democrats are the only ones doing it with such success.
The revelations have not only damaged the party’s reputation but have also reopened discussions about banning political lotteries altogether. With the government already considering tighter regulations, the scandal has provided fresh justification for a ban, which would cripple the Social Democrats’ finances, as half of their income reportedly comes from lotteries.
The far-right Sweden Democrats, who support the government, have openly advocated for cutting off this source of funding, framing it as a way to dismantle what they see as an unfair system propping up the opposition. As the government drafts new lottery legislation, it faces a critical decision: whether to implement a ban that could reshape Sweden’s political landscape or face accusations of using legislative power to undermine its main political rivals.
Lottery still outsourcing operations despite claims to the contrary
The Social Democrats responded swiftly to the backlash, announcing the immediate termination of the telemarketing contract. However, new reports by TV4 Nyheterna suggest that Kombispel continues to use external telemarketing companies for customer service, despite the public statements claiming otherwise. Telemarketing representatives have confirmed that the customer service operations remain unchanged, raising further concerns about the party’s handling of the situation.
Former employees of the telemarketing service have come forward with allegations that unethical practices extended beyond sales and into customer service. According to one former customer service agent, Malou Mattsson, workers were pressured to retain customers at all costs, even when they wished to cancel their lottery subscriptions. Agents were reportedly offered commissions for convincing customers—often elderly individuals—to continue their subscriptions, leading many to feel the customer service environment was even more exploitative than the sales process itself.
CEO dismissed
Amid the scandal, several high-profile figures have already faced repercussions. Kombispel’s CEO, Jonas Lindholm (pictured above), was dismissed, and the entire board was urged to step down. The Social Democrats have announced that a new CEO will take over operations, with a mandate to thoroughly review the company’s practices, including the controversial customer service arrangement.
Spelinspektionen takes action
In the meantime, the Swedish Gambling Authority (Spelinspektionen) has confirmed that it is reviewing the case, following Dagens Nyheter’s investigation. The regulator is now taking steps to assess the situation and the possible breaches of licensing regulations.
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