Sweden Votes to End Land-Based Casino Gambling

Legislation will lead to closure of Casino Cosmopol in Stockholm by January 2026

On April 2, 2025, Sweden's parliament, the Riksdag, officially voted to abolish land-based casino gambling, marking a significant shift in the country's gaming industry. The decision will ultimately result in the closure of Casino Cosmopol, the last remaining state-run casino, located in Stockholm.

Declining Profitability Drives Decision

The Riksdag cited a decline in both profitability and visitor numbers at the Casino Cosmopol sites as key reasons for this legislative action. The proposal to discontinue land-based casinos was initially introduced last May, and the new law is expected to take effect on January 1, 2026. Under this legislation, Svenska Spel, the operator holding the monopoly on land-based casino gaming in Sweden, will no longer be permitted to issue licenses for new casinos, effectively ending the physical casino landscape in the country.

Support from Svenska Spel

Svenska Spel has publicly supported the Riksdag's decision. The company will begin plans to liquidate the Casino Cosmopol location in Stockholm while keeping it operational “until further notice.” Casino Cosmopol CEO Ola Enquist expressed understanding of the government's concerns, noting that the rise of online gambling has significantly diminished patronage at physical casinos.

Enquist acknowledged the emotional weight of closing the Stockholm casino, stating, “We share the government’s assessment and have been prepared for the Riksdag’s decision. Nevertheless, it is of course emotionally tough because it means that an era will end when the casino in Stockholm eventually closes.”

Employee Support and Liquidation Plans

The Casino Cosmopol facility employs approximately 240 people. Enquist mentioned that discussions regarding liquidation are already in progress. The company aims to ensure that the process is as beneficial as possible for its employees. Union negotiations have begun to facilitate the transition for staff affected by the closure.

In 2024, Casino Cosmopol generated SEK 165 million (approximately £12.9 million or €15.4 million), a substantial decrease of 65% from the previous year, primarily due to the earlier closures of casinos in Gothenburg and Malmö. In contrast, the lottery operations under Svenska Spel reported a total revenue of SEK 5.14 billion.

Concerns Over Illegal Gambling

Despite the parliamentary decision, concerns have been raised by the market regulator, Spelinspektionen, regarding the potential rise in illegal gambling as a result of the closure of land-based casinos. The regulator had previously indicated that the dissolution of these establishments could lead to an increase in unregulated gambling activities.

Although Spelinspektionen refrained from making any substantial comments on the closure plans, it did express a need for additional funding to address the anticipated rise in illegal gambling and indicated that resource reallocation might be necessary.

As of now, the regulatory body has not issued a response to the latest announcement regarding the dissolution of land-based casinos in Sweden.

This decision marks a pivotal moment for the gambling industry in Sweden as it continues to adapt to changing consumer preferences, particularly the growing shift toward online gaming.