Casino Cosmopol Could Close In Swedish Governments Proposal

The Swedish government has recently unveiled a proposal that aims to discontinue the operations of the Casino Cosmopol, the last remaining land-based casino under the management of the state-owned operator Svenska Spel. The decision marks a shift in the country’s gambling landscape, as the government cites the casino’s inability to achieve profitability and its diminishing role in the face of the growing popularity of online gaming.

In a memorandum filed on May 7th, the Swedish government has put forth a compelling case for the closure of the Casino Cosmopol. The government’s assessment suggests that the casino “no longer fulfills its purpose” and faces ongoing challenges in reaching profitability. This assessment aligns with the recent financial performance of the Casino Cosmopol and Vegas segment within Svenska Spel’s operations.

A closer look at Svenska Spel’s financial results reveals the stark reality faced by the Casino Cosmopol business. In 2023, the Casino Cosmopol and Vegas arm reported a 12.0% drop in revenue, reaching SEK942m (£69.3m/€80.7m/$86.9m). This decline was attributed to a decrease in casino visitors, as more individuals opted for the convenience and accessibility of online casino gaming.

The government’s proposal acknowledges the growing shift in consumer preferences, with the memorandum noting that the “movement from gambling in land-based casinos to gambling online accelerated after the reregulation of the gambling market in 2019 and the subsequent pandemic.” This trend is further corroborated by Svenska Spel’s own data, which shows that while the Casino Cosmopol and Vegas segment experienced a 11.4% decline in revenue, the online sector saw a 7.2% increase in revenue during the same period.

Should the closure proposal be approved, the Casino Cosmopol in Stockholm would be required to shut down its operations on or before January 1, 2026. This decision would directly impact approximately 200 jobs at the casino. However, Svenska Spel has pledged to support its employees during this transition, stating that it will “do everything we can to support our employees” as the era of Casino Cosmopol comes to an end.

In addition to the financial pressures, Casino Cosmopol has also faced regulatory hurdles in recent months. In December 2023, the casino was fined SEK2m for anti-money laundering failings, following a probe by the Swedish regulator Spelinspektionen. This regulatory issue further underscores the challenges faced by the casino in maintaining compliance and operational standards.

The government’s proposal to shutter Casino Cosmopol is not expected to have a significant impact on illegal gambling in Sweden, according to the memorandum. This suggests that the closure is not viewed as a measure to curb illicit gambling activities, but rather a strategic decision to align the state-owned operator’s offerings with the evolving preferences of Swedish consumers.

It’s worth noting that the closure of Casino Cosmopol is not an isolated incident in the Swedish gambling landscape. Over the past few years, Svenska Spel has already shuttered its casino operations in Sundsvall, Gothenburg, and Malmö, citing limited profitability as the primary driver for these decisions.

The government’s proposal has been met with a pragmatic response from Svenska Spel, with the company acknowledging the assessment and the challenges faced by the Casino Cosmopol business. CEO Erik Strand stated that the review of Casino Cosmopol was conducted in close dialogue with the government, and that the company “shares the assessment that it is no longer possible to run Casino Cosmopol profitably.”

While Svenska Spel’s leadership recognizes the rationale behind the closure, the news has been described as an “end of an era” by CEO Ola Enquist. The emotional impact of this decision is palpable, as the company prepares to bid farewell to its last remaining land-based casino operation in Sweden.

The proposed closure of Casino Cosmopol underscores the need for gambling operators to adapt to the rapidly evolving market dynamics. As consumers increasingly gravitate towards online gaming platforms, land-based casinos must find innovative ways to remain relevant and sustainable.

The closure of Casino Cosmopol represents a significant shift in the Swedish gambling landscape, as the state-owned operator Svenska Spel refocuses its efforts on its other business segments, such as the Tur lottery division and the online Sport & Casino offerings, which have demonstrated stronger growth trajectories.