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Cherry Stops Investment in Swedish sports lottery
Friday January 30,2015 : CHERRY HALTS INVESTMENT IN SPORTS LOTTERY
End of the line for Klubblo as market conditions change.
The Swedish online gambling group Cherry has decided to phase out its involvement in the Swedish sports lottery Klubblo, citing changing conditions for conducting the business.
In a statement Friday, Cherry explained that the Swedish gaming regulator, Lotteriinspektionen, has changed the application of the regulatory framework, which has made it impossible for Klubblo to cooperate with sports associations whose federations are not members of the sports alliance Idrottsalliansen.
Some major federations, including the Football Federation and Ice Hockey Federation, are prevented from joining the Sports Alliance due to exclusivity agreements with the virtual online gambling monopoly Svenska Spel.
Fredrik Burvall, CEO, Cherry, said in the statement: "The goal was that Klubblo, with its focus on grass root sports, would take a strong position as a partner to Swedish sports within the area of gaming and lotteries. Under the prevailing conditions, Klubblo does not fit into Cherry's strategy."
Burvall expects that liquidity will be be affected negatively by approximately SEK -1.5 million during the fourth quarter and the remainder of 2015. Impairment of assets and shares as well as results related to Svenska Klubbspel AB will be charged to financial income from associated companies with SEK -7.7 million and will be reflected the Q4-2014 report.
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