Threat of Closure Looms Over Two of Sweden’s Land-Based Casinos

A concerning development has emerged in Sweden’s gambling landscape, with two of the country’s three land-based casinos facing the imminent risk of permanent closure.

The Casino Cosmopol venues in Malmö and Gothenburg, both operated by Svenska Spel, are currently at the center of this uncertainty, potentially leaving the brand’s Stockholm venue as the sole remaining land-based casino in Sweden.

In this article, we delve into the details surrounding this impending decision and its consequences for the affected cities and employees.

A Critical Decision Looms

According to a report in the Swedish newspaper Göteborgs-Posten, the fate of the Casino Cosmopol venues in Malmö and Gothenburg hangs in the balance. The decision that will determine whether these establishments continue to operate or face permanent closure is scheduled to be made at an extraordinary board meeting set for January 24th.

Eva-Lena Ramberg, a federal lawyer at Sweden’s Hotel and Restaurant Union and contract manager for Casino Cosmopol, shared this information with Göteborgs-Posten. As the decision looms, employees are expected to be notified, and trade unions will be engaged in negotiations on January 25th. Ramberg expressed hope that alternative solutions beyond liquidation could be explored, emphasizing that closure is not the only recourse in this challenging economic situation.

Potential Impact on Jobs

The potential closure of the casinos in Gothenburg and Malmö would have significant implications for employees. Approximately 120 employees in Gothenburg and an additional 105 in Malmö could face the prospect of job losses. The impending decision will not only affect the local economies but also the livelihoods of these individuals.

Closures Amidst Shifting Trends

The uncertainty surrounding these casinos is not isolated but rather a response to evolving gambling trends. In September of the previous year, it was announced that all three Casino Cosmopol venues in Sweden would remain closed on Sundays, Mondays, and Tuesdays due to increased competition from the online gambling sector.

Lotta Örtnäs, press manager at Casino Cosmopol operator Svenska Spel, highlighted the shifting preferences of guests, who primarily visited the casinos on weekends. The decision to align the venues’ operating hours with customer demand meant that they would be open from Wednesday to Saturday.

Factors Contributing to Decline

The revenue decline experienced by Casino Cosmopol stems from several factors. In addition to intensifying competition from online operators, Svenska Spel attributed the land-based revenue decrease to their enhanced measures to promote responsible gaming and combat money laundering.

The impact of these measures was notable, with Svenska Spel’s land-based Net Gaming Revenue (NGR) falling by 13.3% to SEK 248 million in Q2 2023 and by 11.5% to SEK 247 million in Q3.

As the decision day approaches, the future of these casinos hangs in the balance, leaving employees, stakeholders, and communities anxiously awaiting the outcome. The evolving landscape of gambling in Sweden poses challenges that demand adaptive solutions to ensure the sustainability of land-based establishments like Casino Cosmopol.