Casino Cosmopol Faces Closure under New Proposal
The Swedish government has proposed a bill to discontinue the land-based casino operations owned by the state-controlled gambling company Svenska Spel.
Svenska Spel noted that Casino Cosmopol is recording a decline in visitor numbers due to more people preferring to gamble online.
LISTEN TO THIS ARTICLE:In a memorandum submitted yesterday, the government stated that Casino Cosmopol has outlived its usefulness and no longer serves its intended purpose. It also noted that the business is struggling to make a profit, and its closure will not significantly impact illegal gambling in Sweden.
If the proposal is approved, Svenska Spel’s license to operate land-based casinos would be revoked, and its sole remaining casino in Stockholm would need to cease operations. The casino will be allowed to operate until January 1 2026, before permanently closing its doors.
The closure is expected to affect around 200 employees.
Svenska Spel Shares Government Assessment
Svenska Spel won’t contest the motion since the operator also agrees with the government’s assessment of the business. It confirmed that Casino Cosmopol is finding it difficult to achieve financial sustainability due to declining visitor numbers as more people prefer online gambling options.
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. 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.
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The development will make it the fourth casino location Svenska Spel will close in recent years. In 2020, it shut down the casino in Sundsvall. Earlier this year, Svenska Spel announced its decision to permanently shutter operations at its casinos in Gothenburg and Malmö due to their poor financial performance.
Casino Cosmopol Posts Heavy Revenue Decline
The low margins of Casino Cosmopol was highlighted in the Q1 2024 results released by Svenska Spel last month. The group reported a net revenue of SEK1.96 billion ($0.18 billion) for the quarter, a 1% year-on-year decrease.
Revenue from Casino Cosmopol and the Vegas business area declined 32% year-on-year to SEK 169 million.
Svenska Spel linked the decline to various reasons, including restructuring within the Casino Cosmopol and Vegas area, closures of Casino Cosmopol in Malmo and Gothenburg, and reduced operating hours at the remaining casino in Stockholm.
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