I think that we sometimes change an "a" to an "o" when we combine words in Swedish. So;
skökoväldet = sköko + väldet,
"sköka" is old fashioned for "prostituerad" and "välde" is close to "empire". So "empire of prostitutes" or "harlots".
Now, I did a quick search for "skökovälde" and I don't think it's to be taken literally. Without reading a lot of context using that word it seems to describe a society or system where you encounter immorality, shamelessness and find sins like "gluttony" and so on.
Sounds a bit old fashioned and within the contexts I find I also get the impression that the people that use that word imply that the better society would be pretty closely aligned with Christian values (that I would perhaps find a bit "prude").