Swedish Social Democrat Lottery accused of preying on elderly

Garance Limouzy September 15, 2024

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Swedish Social Democrat Lottery accused of preying on elderly

Demands for immediate resignations are shaking A-lotterierna, the lottery company owned by Sweden’s Social Democrats, after an investigation revealed questionable sales practices. Erik Nises (S), Borl?nge’s Municipal Council Chairman, has demanded the CEO and board members step down after revelations that the company employed aggressive telemarketing tactics, allegedly targeting confused elderly customers and withholding crucial information.

The Social Democrats halted their lottery sales shortly after Dagens Nyheter, a daily newspaper in Sweden, exposed these practices. Despite this swift reaction, Nises declared that the leadership of A-lotterierna and its subsidiary, Kombispel, has severely compromised the trust of their stakeholders. “The CEO and board members have taken a significant risk with the members’ trust, which has now disastrously backfired. They must be held accountable,” asserted Nises.

A-lotterierna and Kombispel’s lotteries represent a major revenue stream for the Social Democrats, contributing 9.8 million SEK (862,000 EUR) to the party’s coffers in 2023, with an additional 6.3 million SEK (554,000 EUR) allocated to SSU, the party’s youth organisation.

Confused elderly

According to the investigation, sales agents were reportedly instructed to adopt aggressive tactics, primarily targeting elderly customers who often did not fully comprehend the terms of the lottery subscriptions, frequently sold as ongoing commitments. Former employees of the telemarketing firm admitted that elderly individuals, perceived as more susceptible, were the primary targets of these campaigns.

“We’re not allowed to hang up; you have to push, push, push until the customer buys or hangs up on you,” explained a former employee to Dagens Nyheter. They added: “It was mostly elderly people—about 98 percent of the time. They were seen as easier targets because they’re not ‘in the game’.”

Outsourced sales operations

The investigation uncovered that A-lotterierna outsourced its sales operations to a Spanish telemarketing firm, potentially bypassing Swedish labour regulations.

Nises stated that this contradicts the Social Democrats’ values, particularly their advocacy for stricter regulations within the gambling sector. “This is fundamentally an issue of ethics and morality, and there is widespread criticism within the party,” noted Nises.

In response to the scandal, Social Democratic officials have promised to investigate these allegations thoroughly. Jonas Lindholm, CEO of A-lotterierna and Kombispel, declared “We will get to the bottom of this.” Meanwhile, some are asking for his resignation. “We need new individuals who can manage this operation responsibly and avoid further scandals,” declared Erik Nises.