Sweden to Shut Down Last Remaining Terrestrial Casinos
In a bold move, Sweden's parliament, the Riksdag, has sanctioned the extinction of land-based casinos in the country, marking the impending closure of Casino Cosmopol in Stockholm. This decision comes after years of dwindling visitor numbers and flagging profitability at the state-operated Casino Cosmopol.
The Riksdag's reasoning for this final blow lies in the diminished role land-based casinos play in today's landscape, especially when juxtaposed with the soaring popularity of online gambling in Sweden. Svenska Spel, the exclusive operator of land-based casinos under state control, operates Casino Cosmopol venues. The new law bars any new applicants from obtaining a casino license.
The proposal to axe Casino Cosmopol was first proposed in May last year, and the Riksdag has officially confirmed the amendment will take effect on 1st January 2026, bringing an end to all land-based casino operations in Sweden. Not surprisingly, Svenska Spel, the casino's operator, wholeheartedly backs this decision to phase out land-based casinos.
Casino Cosmopol CEO, Ola Enquist, echoes the government's concerns about the division's recent performance. He attributes the decline to the booming growth of online gambling in Sweden, which is causing a mass exodus from land-based gambling destinations.
On a sentimental note, Enquist admitted that the impending closure of the Stockholm venue would mark the end of an era. However, his focus remains on supporting the staff and maintaining guest services until the final curtain call.
As Casino Cosmopol operates under a state-issued monopoly, the upcoming changes necessitate an update to the ownership instructions given to Svenska Spel by the Swedish government. This step will help facilitate the closure of the Stockholm casino in line with the new law coming into effect by the end of the year. The division's slumping profitability and decreasing footfalls are mainly attributed to the creeping trend of online gambling. To mitigate further losses, Svenska Spel shut down the Sundsvall casino in 2020, followed by the Gothenburg and Malmo locations in February 2024. Only the Stockholm venue remains, with a staff of approximately 240 employees.
The upcoming annual general meeting of Svenska Spel on April 24 will feature discussions on the ownership instructions, providing more concrete timelines on the closure of Casino Cosmopol in Stockholm. Union negotiations are already underway, with the aim of ensuring a smooth and favorable closure process for the employees who will be affected by this historic decision.
Focus on the Digital Frontier
While the closure of Casino Cosmopol signifies a difficult chapter for traditional brick-and-mortar casinos, Sweden's gaming industry is gearing up for a digital revolution. The Swedish Gambling Inspectorate (SGI) has set aside 97.9 million SEK ($8.9 million) for 2025, focusing on enhancing oversight of online gaming, land-based casinos, and sports gambling [1]. Expect increased inspections and compliance enforcement to combat unlicensed operators, match-fixing, and youth gambling in this evolving landscape [1].
Swedish gaming studios, like Arrowhead (nominated for Helldivers 2) and MachineGames (Indiana Jones and the Great Circle), are driving AAA development [5]. Meanwhile, adaptable studios like Crypto Rogue Games (now Cold River Games) are evolving with the market shifts, possibly realigning their focus towards emerging technologies [4]. In the rapidly expanding AR/VR and mobile gaming domains (projected to surpass $300 billion globally by 2025) [2], Swedish studios are expected to modify their hiring strategies and product roadmaps to embrace new opportunities.
The highlights of this digital-centric approach include nominees like Escaping Wonderland (mobile VR) and Mannequin (VR), reflecting Sweden's dedication to immersive and small-screen gaming [5]. The SGI's regulatory framework also prioritizes online gambling oversight, ensuring regulated alternatives step in to fill the void left by waning physical venues [1]. As Sweden waves goodbye to the era of land-based casinos, it prepares to welcome a new age of gaming, driven by innovation, regulation, and digital transformation.
[1] Swedish Gambling Inspectorate (SGI), Budget Proposal for 2025. Available from: https://www.spelinspektionen.se/sv/nyheter/budgetforhandsakt-2025/[2] Global Mobile Games Market to Reach $112 Billion by 2025 - Reportlinker. Retrieved 5 April 2023, from https://www.reportlinker.com/p06150130/global-mobile-games-market-2020-2028.html[3] Statista, Total Revenue of the Swedish Gambling Market from 2014 to 2020 (in Million Swedish Kronor). Available from: https://www.statista.com/statistics/791311/tot-revenue-swedish-gambling-market/[4] Pate, B. (2022, May 3). Dutch Gaming Companies Flock to Sweden Amid Market Stability. CalvinAyre. Retrieved 5 April 2023, from https://calvinayre.com/2023/04/05/business/dutch-gaming-companies-flock-to-sweden-amid-market-stability/[5] VentureBeat, Sweden’s game development industry is booming. But will developers be able to cash out? Retrieved 5 April 2023, from https://venturebeat.com/2023/01/17/swedens-game-development-industry-is-booming-but-will-developers-be-able-to-cash-out/
- In 2026, the closure of Casino Cosmopol in Stockholm will mark the end of land-based casinos in Sweden as per the new law, with the operator, Svenska Spel, being barred from accepting new applicants for casino licenses.
- The Swedish Gambling Inspectorate (SGI) has allocated 97.9 million SEK ($8.9 million) for 2025, focusing on strengthening oversight of online gaming, land-based casinos, and sports gambling, aiming to combat unlicensed operators, match-fixing, and youth gambling.
- Swedish gaming studios like Arrowhead and MachineGames are driving AAA development, while adaptable studios like Crypto Rogue Games are evolving with the market shifts, possibly realigning their focus towards emerging technologies in the rapidly expanding AR/VR and mobile gaming domains.
- The SGI's regulatory framework prioritizes online gambling oversight, ensuring regulated alternatives step in to fill the void left by waning physical venues, as Sweden transitions to a digital-centric gaming culture.
- Casino Cosmopol CEO, Ola Enquist, attributes the decline of land-based casinos to the booming growth of online gambling in Sweden, causing a mass exodus from physical gaming destinations, necessitating an update to Svenska Spel's ownership instructions by the Swedish government to facilitate the closure of the Stockholm casino.
