Sweden’s erstwhile gambling monopoly Svenska Spel saw its revenue shrink as it prepares for new competition in the country’s liberalized online market.

On Thursday, the state-owned Svenska Spel reported revenue of SEK2.08b (US$234m) in the three months ending June 30, a nearly 4% decline from the same period last year. Operating profit was down 11.4% to SEK975m as margins fell two points to 19.1%.

Svenska Spel’s digital division did its best to shoulder the burden with revenue of SEK621m, up one-fifth from Q2 2017 and accounting for 30% of the overall revenue pie. Mobile devices accounted for two-thirds of this digital slice, and mobile growth outpaced the overall digital number, rising 42% year-on-year.

Svenska Spel’s mainstay lottery revenue was flat, while the land-based Casino Cosmopol and Vegas divisions had a rougher ride. The Vegas video lottery terminal business reporting revenue down by one-quarter as more and more customers shift their action online.