07 May

Gambling News

The Swedish government recommends the closing of Casino Cosmopol.

The Swedish government has proposed to terminate the land-based casino operations of the state-owned entity Svenska Spel, known as Casino Cosmopol.
Casino Cosmopol
In a memorandum submitted today (7 May), the administration asserts that Casino Cosmopol "no longer serves its intended purpose." It also highlights persistent obstacles for the business in achieving profitability.

The government stated that it does not anticipate the proposed closure to significantly affect illegal gambling in Sweden.

If the measure is approved, a stipulation in Svenska Spel's licence for operating land-based casinos will be eliminated. Svenska Spel would consequently be required to close its sole remaining casino establishment situated in Stockholm.

Casino Cosmopol Stockholm must cease operations on or before 1 January 2026. The casino may remain operational till this date. Approximately 200 positions would be affected by the shutdown.

Svenska Spel recognises the challenges faced by Casino Cosmopol. 
Svenska Spel concurs with the government's rationale for the shutdown in response to the news. The potential for achieving profitability is deemed "absent," as visitor numbers decline due to an increasing preference for internet gambling.

Svenska Spel once managed four casino establishments in Sweden. The inaugural closure was that of the casino in Sundsvall, which permanently ceased operations in 2020.

Svenska Spel has declared the definitive closure of its casinos in Gothenburg and Malmö owing to their insufficient profitability. The announcement of the decision occurred in January of this year.

“The transition from terrestrial casinos to online gambling intensified following the reregulation of the gambling market in 2019 and the ensuing pandemic, during which Casino Cosmopol was closed,” stated Erik Strand, CEO of Svenska Spel.

“Our evaluation of Casino Cosmopol has occurred in close consultation with our proprietor. We concur that operating Casino Cosmopol commercially is no longer feasible.

CEO Ola Enquist acknowledged the announcement, characterising the decision as a "end of an era."

“While we concur with the government's evaluation, participating in the bill evokes strong emotions.” “If adopted, it signifies the closure of our final casino and the conclusion of an era,” Enquist stated.

This, of course, impacts all employees at Casino Cosmopol. As an employer, we will exhaust all efforts to assist our personnel. We shall remain open as normal and continue to attend to our guests.

Casino Cosmopol is underperforming in comparison to growth in other sectors.
A review of the latest financial data released by Svenska Spel reveals the position of Casino Cosmopol relative to its other enterprises.

In 2023, Casino Cosmopol and its Vegas division experienced a 12.0% decline in revenue, totalling SEK942 million (£69.3 million/€80.7 million/$86.9 million). Svenska Spel attributed this to a decrease in casino patrons owing to the increasing popularity of online casino gaming.

The decline occurred despite Svenska Spel reporting development in other areas. Revenue from the Tur lottery sector increased by 0.6% to SEK 4.92 billion. Simultaneously, revenue from Sport & Casino increased by 4.6% to SEK2.17 billion. 

Casino revenue decreased by 11.4% to SEK473 million, according to net gaming revenue per sales channel. Conversely, the internet sector experienced a revenue increase of 7.2% to SEK 4.20 billion. 

In the latest quarter, the closing of the two casino locations significantly impacted the Casino Cosmopol & Vegas sector, resulting in a revenue decline of 31.6% to SEK169 million. Alongside the closure of two venues, the group also curtailed the operation hours of its remaining venue in Stockholm.

Furthermore, it has encountered regulatory challenges in recent months. In December, Casino Cosmopol was penalised SEK2 million for deficiencies in anti-money laundering practices following an investigation by the Swedish regulator Spelinspektionen. Svenska Spel received a warning on the issue.