Today marks a turning point in the Swedish gambling industry as the government asserts that Casino Cosmopol, Sweden’s state-owned casino operator, has reached the end of its life cycle. In an official memorandum dated 7 May, the government concluded that Casino Cosmopol “no longer fulfils its purpose.” Moreover, it has been struggling with profitability, which the memo attributes to the shift of gamblers towards online platforms.
Adding to the announcement, the government anticipates that such a closure would not significantly affect illegal gambling activities within the nation. If the legislature approves this proposal, Svenska Spel—the national gambling operator—will no longer be licensed to maintain land-based casinos. Consequently, Svenska Spel’s only remaining casino, located in the heart of Stockholm, would be slated for closure no later than 1 January 2026. Until that time, the establishment may continue to operate as usual.
This decision is set to impact roughly 200 employees at the Stockholm casino. Svenska Spel, aligning with the government’s evaluation, agrees that the potential for turning a profit in the current gambling landscape is negligible, especially considering the consistent decline in visitor numbers in favor of online gambling alternatives.
Svenska Spel had, at one time, a more extensive presence with four casino locations across Sweden. The Sundsvall casino was the first to fall, shutting its doors permanently in 2020. Earlier this year, the Gothenburg and Malmö casino properties also ceased operations due to their meager profitability. These closures have been a direct result of significant shifts in the gambling industry, compounded by the COVID-19 pandemic, according to Svenska Spel CEO Erik Strand.
Reflecting on the company’s financial performance, it is evident that Casino Cosmopol is underperforming compared to Svenska Spel’s other ventures. For the year 2023, the Casino Cosmopol and Vegas division reported a revenue decrease of 12.0% to SEK 942 million. This downturn tracked with the company’s challenges as the general populace showed an increased preference for online casinos.
Conversely, Svenska Spel has experienced revenue growth in other areas. Its Tur lottery division saw a 0.6% increase in revenue, reaching SEK 4.92 billion. More impressively, the Sport & Casino segment’s revenue rose by 4.6% to SEK 2.17 billion. Breaking down revenue by sales channel, the casino side dropped 11.4% to SEK 473 million, while the online gambling income surged by 7.2% to SEK 4.20 billion.
The latest quarterly report further emphasizes the situation. The closure of two casino sites and reduced operating hours at the remaining Stockholm venue led to the Casino Cosmopol & Vegas segment’s revenue plummeting by 31.6% to SEK 169 million.
The path forward has not been without regulatory challenges for Casino Cosmopol. The Swedish regulator Spelinspektionen fined the casino SEK 2 million in December due to gaps in its anti-money laundering practices. Svenska Spel also received a warning in the same context.
In light of the government’s proposal, there are mixed emotions at Svenska Spel. CEO Ola Enquist acknowledged the decision with sincere acceptance, though with a wistful note, calling it the “end of an era.” He expressed the profound impact this would have on the affected employees, reassuring that the company will extend its full support to its workforce during this transition. Enquist emphasized that until the eventual closure, Casino Cosmopol will remain in full operation, committed to serving its patrons with unflagging dedication.
This development signals a significant shift in Sweden’s stance on land-based casinos, as digital gambling platforms continue to reshape the gaming industry at large.
