Svenska Spel Revenue Drops as Land-Based Casinos Close

Svenska Spel, Sweden’s state-owned gambling giant, reported a notable revenue dip in Q1 2025, signaling a major transformation in the country’s gaming landscape.

Following the closure of two of its three Casino Cosmopol venues in Gothenburg and Malmö, Svenska Spel faced a 4% decline in revenue, recording SEK 1.88 billion (€171.7 million) for the quarter. Although the impact was cushioned by the casinos operating part of Q1, it reflects the ongoing erosion of Sweden’s land-based gaming segment.

The company now pivots aggressively toward online gambling and lottery offerings, hoping its new Lyckoplatsen lottery product will compensate for lost brick-and-mortar income. Additionally, rising online revenue and cost reductions are softening the blow, marking a significant reshaping of Svenska Spel’s operational strategy.

As the Swedish gambling market evolves, Svenska Spel is adapting by expanding its digital offerings and betting on lottery innovation. With online gaming revenue rising 7% year-on-year and a leaner operational model, Svenska Spel is positioning itself to thrive in a market increasingly dominated by digital-first players.

Consumers benefit too, as enhanced digital products promise better engagement and new gaming experiences, while regulators continue pushing for higher legal market channelization to protect players.

Svenska Spel’s future now hinges on its ability to innovate online and strengthen its lottery base. Players can expect new products like Lyckoplatsen to drive excitement, while stakeholders must watch how Svenska Spel navigates fierce competition and regulatory challenges in a post-casino era.

Svenska Spel Revenue Falls as Casino Closures Force Shift Toward Online and Lottery Growth

Key Points

• Revenue Decline: Svenska Spel reported a 4% revenue drop in Q1 2025, largely due to the closure of two land-based casinos.
• Shift to Digital: Online gaming revenue grew by 7%, with new lottery offerings like Lyckoplatsen aiming to boost future income.
• Market Challenges: Sweden’s legal gambling channelization remains at 86%, while unlicensed operators, especially from Curaçao and Anjouan, remain a concern.

A Closer Look: Svenska Spel’s Strategic Transition

In February 2024, Svenska Spel shuttered its Casino Cosmopol properties in Gothenburg and Malmö, leaving only the flagship Stockholm casino operational — but not for long. Plans are already underway to close the final land-based venue by the end of 2025, which will mark the end of traditional casino gambling in Sweden.

Despite these drastic changes, Svenska Spel managed to mitigate financial damage better than many expected. The 4% revenue drop in Q1 2025 is relatively modest, considering the Casino Cosmopol closures. This resilience is largely attributed to the company’s thriving online segment, where gaming revenue surged by 7% year-on-year, totaling SEK 1.167 billion.

Additionally, Svenska Spel launched Lyckoplatsen, a new lottery product, during the quarter. The operator is betting that such innovations will drive future growth and help offset the complete loss of its land-based casino revenue.

In terms of operational profitability, Svenska Spel actually posted a positive surprise. Operating profit nearly doubled, rising by 96% year-on-year to SEK 609 million. Cost savings from closing expensive-to-run casinos clearly contributed to this impressive margin expansion.

However, challenges remain. Spelinspektionen, Sweden’s gambling regulator, continues to battle the persistent threat of unlicensed gambling. Channelization to legal operators stands at around 86%, a figure that the government aims to improve. Unlicensed operators based in Curaçao, Anjouan, and those running skin-betting sites continue to attract Swedish players, representing a drain on licensed revenues and a threat to player protection standards.

Svenska Spel’s Q1 results mark a turning point for the Swedish gambling market. As land-based casinos fade into history, the operator is embracing a digital and lottery-driven future. While the transition is challenging, strong online growth and innovative products like Lyckoplatsen position Svenska Spel to remain a leading force in Sweden’s regulated market.

However, with competition from both licensed and unlicensed platforms intensifying, Svenska Spel must continue to innovate, prioritize player trust, and collaborate with regulators to maintain and grow its customer base in the new era of Swedish gambling.