Swedish gambling regulator Spelinspektionen has raised concerns that the proposed closure of Svenska Spel’s Casino Cosmopol business could lead to a rise in illegal gambling within the country’s land-based market. The warning follows a government proposal to discontinue the state-owned casino operation, citing its failure to meet its purpose and persistent profitability challenges.
Currently, only Casino Cosmopol Stockholm remains operational, with the locations in Sundsvall, Gothenburg, and Malmö having already shut down. If the proposal moves forward, the Stockholm venue would close by January 1, 2026, affecting about 200 jobs.
Spelinspektionen flagged the potential consequences of the closure, noting that it could drive customers towards illegal gambling establishments. “There is today a prevalence of illegal gambling clubs in the country. However, the extent is unclear,” the regulator said. Recent cases of illegal gambling have already attracted the attention of law enforcement authorities.
In anticipation of a possible rise in illicit gambling activities, Spelinspektionen emphasized the need for additional resources to combat the issue. “As the proposal likely means an increase in illegal gambling, Spelinspektionen may have to put more resources into countering illegal land-based gambling activities,” the regulator said, indicating it may need to re-prioritize its efforts.
Beyond illegal gambling, the closure could also impact the broader market. The removal of Casino Cosmopol would eliminate a condition in Svenska Spel’s license to operate land-based casinos, potentially allowing other operators to apply for similar licenses in Sweden. Spelinspektionen has already observed growing interest from commercial casino operators and said it might need to increase its supervision and resources to manage future license applications and market regulation.
“We will follow the development of the gambling market in this part and probably have to increase supervision and review future needs for authorizations depending on the development of this part of the market,” the regulator stated.
Original article: https://www.yogonet.com/international/noticias/2024/08/20/76001-sweden-39s-casino-cosmopol-closure-could-fuel-illegal-gambling-regulator-warns
