In May, Sweden’s government proposed discontinuing the Casino Cosmopol land-based casino business. The government said Casino Cosmopol “no longer fulfils its purpose” and noted ongoing challenges for the business to reach profitability.
Casino Cosmopol Stockholm remains the only venue still operating in Sweden. At one point, four locations were open, but Sundsvall closed in 2020. Svenska Spel also announced the permanent closure of its casinos in Gothenburg and Malmö in January this year.
Should the proposal go ahead, Casino Cosmopol Stockholm would need to close on or before 1 January 2026. Approximately 200 jobs would be impacted by the closure.
Closure could push Casino Cosmopol players to illegal casinos
Responding to the proposal, Spelinspektionen said it has “no substantive views” on the possible closure of the last casino. However, it has flagged concerns about how this could impact the prevalence of illegal gambling in the Sweden land-based market. The country’s Police Authority put forward a similar response.
Spelinspektionen said should Casino Cosmopol close, this could push its current customers to illegal casinos.
“There is today a prevalence of illegal gambling clubs in the country,” Spelinspektionen said. “However, the extent is unclear.
“In recent years, we have acted as an expert in a handful of cases where charges have been brought. Although the number of such cases is relatively few today, our assessment is that the law enforcement authorities are increasingly paying attention to illegal gambling.”
Spelinspektionen may need more funds to tackle illegal gambling
Should the planned closure proceed, Spelinspektionen said it would need more funding to tackle the expected rise in illegal land-based gambling. This could also force it to reallocate certain resources.
“As the proposal likely means an increase in illegal gambling, Spelinspektionen may have to put more resources into countering illegal land-based gambling activities,” Spelinspektionen said. “This may mean re-prioritising resources for illegal land-based gambling.
Spelinspektionen also addressed how the closure would impact the wider market. Should the measure pass, a condition in Svenska Spel’s licence for the right to operate land-based casinos would be removed. In turn, other operators could apply for licences in Sweden.
The regulator said it has seen an increase in interest from commercial casino operators in applying for such licences. As such, it would need to increase its own resources to manage these licences and regulation of the market.
“We will follow the development of the gambling market in this part and probably have to increase its supervision and review future needs for authorisations depending on the development of this part of the market,” Spelinspektionen said.
Original article: https://igamingbusiness.com/casino-games/land-based-casino/sweden-regulator-concerns-casino-cosmopol-closure/
