Svenska Spel Announces Closure of Casino Cosmopol Gothenburg and Malmö

Svenska Spel’s decision to close two of its Casino Cosmopol locations in Gothenburg and Malmö reflects a strategic realignment in response to the evolving gambling landscape. While the closures signify the end of an era for Sweden’s land-based casino industry, they also highlight the operator’s commitment to adapting its business model to current market realities. As Svenska Spel continues to innovate and expand its online and lottery services, the Swedish gambling sector stands at the cusp of a new era, poised for digital transformation and growth.

A Strategic Pivot in Sweden’s Gambling Sector

Svenska Spel, Sweden’s state-controlled gambling operator, has announced a decisive move to close two of its three Casino Cosmopol venues. The affected locations in Gothenburg and Malmö are set to shutter on February 24, leaving the Stockholm casino as the lone survivor of what was once a trio of premier gambling destinations.

Rationale Behind the Closures

The decision follows a comprehensive strategic review by Svenska Spel, triggered by sustained financial underperformance. Despite various cost-cutting measures and attempts to revitalize the venues, the Gothenburg and Malmö casinos have reported consistent losses since 2020, failing to bounce back to pre-pandemic profitability levels.

Impact on Employees and the Local Economy

Approximately 180 employees across the Gothenburg and Malmö locations are directly affected by the closures, somewhat fewer than the initially anticipated 200 redundancies. The decision underscores the challenging economic environment and the shifting dynamics of consumer gambling preferences.

A Farewell to Two Decades of Gaming Excellence

Casino Cosmopol CEO Ola Enquist expressed regret over the closures, emphasizing the two decades of international casino experience offered to Gothenburg and Malmö’s residents. The final weeks of operation are envisioned as a “nice finale” for the casinos, celebrating their legacy and contribution to Sweden’s gaming culture.

Svenska Spel’s Financial Overview

Despite the closures, Svenska Spel reported a total revenue of SEK8.03bn (€712.1m) for 2023, indicating resilience amidst industry challenges. While online revenue saw a 7.2% increase, the decline in retail, restaurant, bingo hall, and casino revenue highlights a broader trend towards digital gaming preferences.

Adapting to the Digital Shift

The strategic shift away from land-based casinos is reflective of a broader industry trend, with Svenska Spel noting a decline in casino visitors in favor of online gaming alternatives. This transition is further evidenced by the growth in online casino performance and the successful launch of a new poker platform.

Looking Ahead: The Future of Svenska Spel and Swedish Gambling

As Svenska Spel navigates this transitional period, the focus shifts towards optimizing its online and lottery offerings to meet changing consumer demands. The closure of the Gothenburg and Malmö casinos marks a significant moment in Sweden’s gambling industry, signaling a move towards a more digitally-focused future.