Swedish Regulator Seeks More Resources if Casino Cosmopol Closes

Spelinspektionen Calls for More Resources Amid Potential Casino Cosmopol Closure

In a significant development for Sweden’s gambling landscape, Spelinspektionen, the Swedish gambling regulator, has raised concerns about the potential closure of the country’s last land-based casino, Casino Cosmopol. As the government considers closing the flagship venue in Stockholm, Spelinspektionen has warned that such a move could inadvertently fuel the rise of illegal gambling activities. The regulator has also requested additional resources to address the potential increase in unregulated gambling, should the closure proceed.

Impact of Casino Closures on Gambling Regulation

The discussion around the closure of Casino Cosmopol comes in the wake of the decision by Svenska Spel to shut down two of its three land-based casinos earlier this year. The state-controlled operator cited unprofitability and the growing dominance of online gambling as the primary reasons for the closures. Despite the closure of the Malmö and Gothenburg venues, Svenska Spel continues to operate the Stockholm location, which serves as the last bastion of land-based casino gaming in Sweden.

However, a new state memorandum, supported by the Tidö Coalition government, has proposed that the Stockholm casino should also close its doors by January 1, 2026. The memorandum argues that the state should distance itself from “hard gambling,” effectively ending Sweden’s involvement in the operation of brick-and-mortar casinos. This proposal has prompted Spelinspektionen to respond, emphasizing the potential risks associated with shutting down the last legal land-based casino.

Spelinspektionen’s Concerns and Requests

In a formal response submitted by Deputy Director General Patrik Gustavsson and Legal Counsel Charlotte Nothnagel, Spelinspektionen acknowledged that it does not object to the closure of Casino Cosmopol in principle. However, the regulator underscored significant concerns raised by law enforcement authorities, particularly the risk that existing casino players might turn to illegal gambling channels.

Spelinspektionen highlighted that although the current number of cases related to illegal gambling is relatively low, there has been a noticeable increase in law enforcement’s attention to such activities. The regulator fears that closing the last legal land-based casino could exacerbate this trend, making it harder to monitor and control illegal gambling operations. To mitigate these risks, Spelinspektionen has requested additional resources to strengthen its enforcement capabilities and to launch public awareness campaigns to inform players of the changes.

Other Proposed Changes and Spelinspektionen’s Response

Beyond the potential casino closure, the state memorandum also suggests lifting current limits on jackpots and prizes offered by state lotteries. Currently, Swedish regulations cap prize values at 50% of the stakes collected during a period. Spelinspektionen has recommended that if these limits are lifted for state lotteries, similar rules should be applied across all lotteries to maintain fair competition, particularly for those lotteries that benefit public causes.

Moreover, Spelinspektionen supported proposals to enhance its role in combating money laundering, emphasizing the importance of regular data collection to align with upcoming European Union reporting requirements. This would ensure that Sweden’s gambling industry remains compliant with international standards while minimizing risks associated with financial crimes.

As Sweden contemplates the closure of its last land-based casino, Spelinspektionen has made it clear that the move could have unintended consequences. The regulator’s call for additional resources highlights the challenges that lie ahead in managing the potential rise in illegal gambling activities. As the Swedish government weighs its options, it will need to consider the broader implications for the country’s gambling industry and the effectiveness of its regulatory framework in protecting consumers and maintaining a fair gaming environment.