Swede’s former betting monopoly Svenska Spel saw its profits tumble in the first quarter of the year despite the long-awaited launch of its online casino product.

Figures released Thursday show the state-owned Svenska Spel generated net gaming revenue of SEK 2.06b (US$215.9m) in the three months ending March 31, a 6% decline from the same period last year. Operating profit plunged 54.5% to SEK519m while actual profit was down nearly two-thirds to SEK408m.

The quarter began with the launch of Sweden’s new regulated online gambling market on January 1 and with it the realization of Svenska Spel’s long-held dream of being allowed to offer an online casino product alongside sports betting.

The new regulatory scheme also forced Svenska Spel to reorganize with a clear separation between its land-based and digital operations. The latter now operate under the banner of Svenska Spel Sport & Casino, which reported revenue of SEK544m, a modest 4% year-on-year improvement.