Proposed measures have been introduced by the Swedish government suggesting the termination of Svenska Spel’s terrestrial operations, specifically its arm, Casino Cosmopol. Increased inability to meet its operational objectives is the key motive for closure, according to a memorandum disclosed on May 7.
Financial struggles are the main reason for the suggested closure by the government. Swedish legislators also observed that the decision to close, will potentially not affect illicit gambling activities.
Casino Cosmopol’s dilemmas were evident in Svenska Spel’s 2023 report, a clear indication that the brand’s land-based operations were adversely impacting its financial status.
An approval of the suggested termination would lead to an amendment to Svenska Spel’s permit, which would restrict its ability to manage land-based casinos. Consequently, the organization would need to end operations at its Stockholm-based casino, the final standing Casino Cosmopol outlet. This would put roughly 200 jobs at risk.
To give a bit of history, in 2020 Svenska Spel ceased operations at its Sundsvall casino to curb losses. The firm also terminated its Casino Cosmopol affairs in Gothenburg and Malmö earlier this year.
If the memo’s recommendations are sanctioned, Casino Cosmopol would potentially cease operations by January 1, 2026.
Svenska Spel Concedes its Land-Based Procedures Aren’t Profitable
In response to these developments, Svenska Spel acknowledged that its terrestrial operations have not been functioning optimally, attributing this to the pandemic’s surge in virtual gambling.
Erik Strand, the CEO of Svenska Spel, agreed with the assessment that maintaining profitability at Casino Cosmopol has become increasingly difficult.
Ola Enquist, CEO of Casino Cosmopol, while aligning with the aforementioned concession, spoke on the emotional turmoil it has caused the team. He construed the likely closure of Casino Cosmopol as the “end of an era.”
We’ll make sure to extend our complete support in this difficult time to every individual working at Casino Cosmopol.
Ola Enquist, CEO, Casino Cosmopol
Enquist emphasized that Casino Cosmopol will continue to service guests until the final verdict.
In a separate update, the Sport & Casino division of Svenska Spel was reprimanded with a fine of $9.5 million for several shortcomings pertaining to its responsibility towards its players.
