Swedish investment bank dumps £100m in gambling stocks on ethical concerns
Handelsbanken divests shares in gaming companies including Mr Green, LeoVegas and NetEnt
Swedish investment bank Handelsbanken (SHB) has sold SEK 1.2bn (£100.4m) worth of shares in Swedish online gambling operators over the last three months, citing ethical concerns.
According to Swedish financial newspaper Di, the publicly-listed bank divested its shares in Mr Green, LeoVegas, NetEnt, Aspire Global, Catena Media and Scout Gaming in an effort to boost its corporate and social responsibility.
Sustainability manager at the bank, Karin Askelöf, said the gambling industry was seen by many as a controversial sector that adversely affects society.
“Investing or not in gaming companies is seen by us and many of our customers as an important responsibility,” Askelöf said.
“Sustainability is an integral part of our managers’ corporate analysis and with regards to the sale of gaming companies, sustainability is an area to take into account.”
However, SHB has retained shares in live casino supplier Evolution Gaming and affiliate group Raketech, although the bank halved its Evolution shares in in September.
Handelsbanken was previously considered one of the biggest shareholders of NetEnt, owning 4.9% of the casino supplier.
Redeye analyst Kristoffer Lindström told EGR Intel the impending regulation in Sweden has caused investors to approach listed operators with more caution.
“Gambling shares have been in decline in the last few months. That SHB has sold a significant amount of capital could possible enhance the share drops further as a selling pressure makes other investors even more cautious,” Lindström said.