Proposed Casino Cosmopol Closure

Sweden is on the brink of a significant change in its land-based gambling market. Recently, the Swedish Gambling Authority, Spelinspektionen, has raised the alarm about the potential consequences of the closure of the state-owned operator Svenska Spel’s Casino Cosmopol business as a result of a government proposal. 

The regulator claims it would negatively impact land-based casinos by causing an increase in illegal gambling.

The proposal seeks to close the state-owned operator because it has failed to fulfil its purpose and has had consistent profitability challenges.

What does this mean for Svenska Spel’s Casino Cosmopol

In the past, the casino ran four operations: Sundsvall, Gothenburg, Malmö, and Stockholm. Only Stockholm remains open, and the current location is under final scrutiny.

If the proposal goes forward, the casino would close by January 1, 2026, resulting in the loss of 200 jobs. 

Additionally, it is expected to have negative consequences on the market, driving more bettors towards illegal gambling. 

“There is today a prevalence of illegal gambling clubs in the country,” Spelinspektionen said. “However, the extent is unclear.

“In recent years, we have acted as an expert in a handful of cases where charges have been brought. Although the number of such cases is relatively few today, our assessment is that the law enforcement authorities are increasingly paying attention to illegal gambling.”

What does this mean for land-based casinos in Sweden?

The proposal would remove the condition in Svenska Spel's license for the right to operate land-based casinos if it moves forward.

That would open up the gambling market to other operators seeking similar licences in Sweden. The regulatory organisation has already noted increased interest from commercial casino operators.

What does this mean for Spelinspektionen

Due to an increase in interest from commercial casino operators, Spelinspektionen would need more resources to manage future licence applications and market regulation. 

“We will follow the development of the gambling market in this part and probably have to increase its supervision and review future needs for authorisations depending on the development of this part of the market,” Spelinspektionen said.

Additionally, it would need to redirect more resources towards combating illegal gambling. 

“As the proposal likely means an increase in illegal gambling, Spelinspektionen may have to put more resources into countering illegal land-based gambling activities,” Spelinspektionen said. “This may mean re-prioritising resources for illegal land-based gambling.

Besides the state-owned operator, the new proposal will affect Spelinspektionen and casino operators.