Sweden’s government has proposed to discontinue the land-based casino business of state-owned operator Svenska Spel, signaling the potential closure of Casino Cosmopol.
The memorandum filed by the government on May 7 states that Casino Cosmopol no longer fulfills its purpose and highlights ongoing profitability challenges faced by the business.
If the proposal passes, Svenska Spel’s license condition to operate land-based casinos would be removed, leading to the closure of its only remaining casino venue in Stockholm. Casino Cosmopol Stockholm would be required to shut down on or before January 1, 2026, affecting approximately 200 jobs.
The government said it does not expect the proposed closure to have any “major impact” on illegal gambling in Sweden.
In response to the proposal, Svenska Spel acknowledged the struggles faced by Casino Cosmopol. The operator noted the lack of opportunity to achieve profitability, citing declining visitor numbers as more individuals opt for online gambling.
While at point Svenska Spel operated four casino locations in Sweden, that number has been steadily decreasing. The first to shut was the casino in Sundsvall in 2020. In January this year, the company announced the permanent closure of its Gothenburg and Malmö casinos.
“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, when Casino Cosmopol remained closed,” Svenska Spel CEO Erik Strand said.
“Our review of Casino Cosmopol has taken place in close dialogue with our owner. We share the assessment that it is no longer possible to run Casino Cosmopol profitably.”
Svenska Spel Business Unit Manager Ola Enquist described the government’s decision as the “end of an era.” He acknowledged the emotional impact of the closure on Casino Cosmopol employees and pledged support for affected staff while ensuring continued service to guests.
Financial data from Svenska Spel’s recent reports highlight the disparity in performance between Casino Cosmopol and other business divisions. In 2023, the Casino Cosmopol and Vegas arm reported a 12.0% decline in revenue, attributed to reduced casino visitors amidst the growing popularity of online gaming. Meanwhile, other divisions such as Tur lottery and Sport & Casino reported revenue growth.
In the most recent quarter, the closure of two casino sites and reduced operating hours at the remaining Stockholm venue further impacted revenue for the Casino Cosmopol & Vegas segment.
Original article: https://www.yogonet.com/international/noticias/2024/05/08/72085-swedish-govt-proposes-closure-of-casino-cosmopol-amidst-profitability-struggles
