This newest development is not unexpected, as brick-and-mortar casinos in the nation have been struggling due to the prevalence of online gambling
Sweden has officially opted to shut down its land-based casino sector after the Riksdag, the nation’s parliament, voted to ban brick-and-mortar casino operations. This move will lead to the closure of the last remaining state-run Casino Cosmopol in Stockholm, marking the end of an era for Sweden’s gambling industry. Meanwhile, the nation continues to struggle with illegal offshore operators amid ongoing reforms.
This Decision Marks the Culmination of a Long Struggle
The decline of Sweden’s land-based casinos is not a new phenomenon. Earlier this year, state-owned gambling operator Svenska Spel shut down its Casino Cosmopol venues in Gothenburg and Malmö as revenues declined due to shifting player preferences. The final closure in Stockholm will likely happen within the next two years, marking the end of brick-and-mortar gaming in the country.
In May 2024, the Swedish government proposed a complete ban on land casino operations, amending Svenska Spel’s licensing conditions that allowed the operator to manage physical casino locations. Lawmakers motivated this decision with the sector’s significant decline in revenues and player numbers, reinforcing the belief that most players now prefer digital platforms.
With Svenska Spel’s exit from the land-based casino segment, no other companies will be permitted to apply for licenses to operate brick-and-mortar venues in Sweden. As the country’s gambling market will soon explicitly revolve around digital offerings, it is yet unclear whether the Casino Cosmopol brand will transition online or remain a footnote in the sector’s history.
Shifting Market Trends Require Enhanced Regulations
Svenska Spel welcomed the government’s decision, noting that maintaining land-based casino operations was no longer viable under current market conditions. Casino Cosmopol generated SEK 165 million ($19.64 million) in revenue for Svenska Spel in 2024, a 65% decline from the previous year. CEO Ola Enquist acknowledged the emotional and symbolic weight of the closures but was adamant that the regulated sector must adapt to shifting industry trends.
“It is emotionally tough because it means an era will end when the Stockholm casino eventually closes. Our focus right now is to support our employees while staying open and continuing to take care of our guests.”
Ola Enquist, Svenska Spel CEO
Spelinspektionen, the Swedish gambling regulator, did not oppose the closure. However, the authority warned that the move could result in a spike in illegal gambling. The regulator has called for increased resources to enhance monitoring and enforcement against unauthorized providers. These calls are especially relevant as recent reports indicate a massive increase in illegal gambling activity.
The Swedish government faces rising scrutiny over its ability to control the gambling sector. In October 2024, the country’s National Audit Office (NAO) condemned Spelinspektionen for failing to meet market regulation expectations. As the country moves to a fully digital market, effective enforcement will be vital to combat unauthorized gambling activity, placing increased pressure for further reforms.
