The Swedish parliament recently announced plans to end gambling in land-based casinos in the country. As a result, Casino Cosmopol, the state-owned casino that has been operating in Sweden for more than two decades, will close by 2026.
A Look Back at Sweden’s Land-Based Gambling
Sweden's land-based gambling story began when Casino Cosmopol was first opened back in the early 2000s. Casino Cosmopol featured four casinos in Stockholm, Gothenburg, Malmö and Sundsvall. They were all managed by Svenska Spel.
These four venues were part of a wider state-controlled gambling framework that was there to regulate the market and tackle problem gambling, which was a major concern.
Over the years, Casino Cosmopol faced challenges, of course. From rapidly decreasing visitor numbers and even a drop in profitability, Casino Cosmopol managed to avoid problems, all until 2020.
In 2020, the Sundsvall location was closed, which was the first one to do so. Sundsvall was then followed by Gothenburg and Malmö in early 2024. Finally, the Stockholm facility is set to close forever by January 1, 2026.
These closures were attributed to ongoing financial losses, as despite a 5% increase in revenue in 2024, the land-based sector suffered a significant drop in visitors.
The Current State of Land-Based Gambling in Sweden
The Swedish Gambling Authority Spelinspektionen reported growth in revenue for 2024. However, most of this growth comes from the online gambling sector.
Land-based gambling, such as restaurant-casinos, generated SEK 237 million ($22.28 million), a small yet notable increase of 4%. However, a stark contrast was Casino Cosmopol's revenue, which fell by 66.3% due to the previously mentioned closures.
These figures may not be very meaningful to the ordinary player, but industry experts can clearly see that the role of land-based casinos in the Swedish gambling ecosystem is slowly fading.
Behind this lies another important insight: player preferences and the dynamics of the market have changed significantly.
The Rise of Online Gambling and Market Transformation
The Swedish gambling landscape was forever when the Gambling Act (Spellagen) was first introduced on January 1, 2019.
This new legislation formally ended the country's long-standing gambling monopoly and opened up the market to private operators.
These included not only local companies, but also international firms looking to expand into Sweden. Soon enough, a large number of game suppliers and casino brands rushed to obtain the Swedish licence and establish a presence in the newly opened market.
The Act mainly sought to increase player protection, ensure fair play and provide the market with a well-structured framework.
Since then, online gambling has experienced exponential growth.
In 2024, revenue from online gambling accounted for over 64% of total gambling revenue. This astonishing figure reflects a trend that can be observed not only in Sweden, but all over the world.
More and more customers are opting for digital platforms as they offer both the accessibility and convenience that traditional, brick-and-mortar establishments do not.
The increasing use of smartphones and better high-speed internet has further increased the trend towards online gambling, making digital the most important sector of the Swedish gambling industry today.
How the Industry Is Responding to Changes
The proposed closure of Casino Cosmopol has led to mixed reactions.
While some players see this as a pragmatic response to the development of the market, others have doubts.
Spelinspektionen has warned the public that the lack of regulated land-based casinos could drive players to unlicensed or illegal gambling venues, which would be the counter-effect of the efforts sought by this decision. In other words, it could put players more at risk than ever.
Another concern is unemployment. Namely, casinos that have closed sparked questions about the effect the closures will have on employment. But Svenska Spel, which operated the casinos, announced plans to support employees that were affected by this decision.
Looking Ahead
Today, it is clear that the Swedish gambling industry is at a crossroads.
The decline of land-based casinos and the fantastic growth of online gambling means there has been a shift in both how the market works and what the players want.
While the government keeps focusing on subsequent reforms and changes, everyone else will focus on ensuring that the digital gambling environment is safe, fair and responsible. Ultimately, it doesn't matter what medium customers use for gambling, what matters is that the market remains safe and responsible.
