The government has stated that Casino Cosmopol "no longer fulfils its purpose" in a memorandum that was filed today, 7 May. It also highlights the persistent obstacles that the company faces in its pursuit of profitability.

The government further stated that it does not anticipate any "major impact" on illegal gambling in Sweden as a result of the proposed shutdown.

The removal of a requirement in Svenska Spel's licence to operate land-based casinos is contingent upon the measure's passage. Consequently, Svenska Spel would have no choice but to close its last surviving casino site in Stockholm.

It would be necessary for Casino Cosmopol Stockholm to close no later than January 1, 2026. So long as it stays open until this date, the casino can keep on rolling. The shutdown would have an effect on about 200 jobs.

Recognising Casino Cosmopol's Challenges, Svenska Spel 
In response to the news, Svenska Spel stated that it agrees with the government's evaluation of the closure's reasons. The possibility of being profitable is described as "lacking," and the decline in visitor numbers is attributed to the increasing popularity of online gambling.

Svenska Spel once ran four different casinos around Sweden. In 2020, the Sundsvall casino was the first to permanently close its doors.

The Gothenburg and Malmö casinos were recently confirmed to be permanently closed by Svenska Spel due to their low profitability. In January of this year, the decision was announced.

After the reregulation of the gaming sector in 2019 and the ensuing pandemic, when Casino Cosmopol stayed closed, the migration from playing in land-based casinos to gambling online accelerated, according to Svenska Spel CEO Erik Strand.

Our evaluation of Casino Cosmopol was a collaborative effort between ourselves and the owner. We have come to the same conclusion as you: Casino Cosmopol can't be run profitably anymore.

It was the "end of an era" for CEO Ola Enquist, who also acknowledged the news and said he welcomed it.

While we agree with the government's assessment, being a part of the bill is quite emotional for us. The adoption of this measure would mark the end of an era, according to Enquist, since it would force the closure of our final casino.

Obviously, this has an impact on every single one of us here at Casino Cosmopol. It is our policy as an employer to provide our workers with all the resources they need. Additionally, we will maintain our regular hours and do our best to accommodate our customers.

Cosmopol Casino is falling behind other areas in terms of growth
You can tell where Casino Cosmopol stands in relation to Svenska Spel's other businesses just by looking at their most recent financial statements.

Revenue for the Casino Cosmopol and Vegas division fell 12.0% to SEK942m (£69.3m/€80.7m/$86.9m) in 2023. Svenska Spel explained that this was because fewer people were visiting casinos as a result of the increasing popularity of playing casino games online.

Despite development elsewhere, Svenska Spel recorded a decline here. At 4.92 billion Swedish crowns, revenue from the Tur lottery segment was up 0.6%. Revenue at Sport & Casino, meanwhile, increased 4.6% to SEK2.17bn. 

Casino revenue dropped 11.4% to SEK473m when broken down by sales channel. However, income in the digital sector increased by 7.2% to SEK4.20bn. 

Revenue for the most recent quarter fell 31.6% to SEK169m, a clear impact of the two casino locations' closure on the Casino Cosmopol & Vegas sector. Not only did two of the sites close, but the company also cut the hours of operation at its last Stockholm facility.

This is on top of the regulatory challenges it has encountered in the past few months. Following an investigation by the Swedish regulator Spelinspektionen, Casino Cosmopol was fined SEK2 million in December for shortcomings related to anti-money laundering. The issue also prompted a warning for Svenska Spel.