Sweden’s state-owned gambling group, Svenska Spel, recently announced the closure of its Casino Cosmopol operations in Gothenburg and Malmö.
The decision was made after negotiations with trade unions, as these venues were no longer deemed profitable. The closure of the two venues occurred on Saturday, February 24 and impacted approximately 100 employees in Gothenburg and 80 in Malmö.
In 2023, Svenska Spel initiated a strategic review of its Casino Cosmopol and Vegas Slot units. This review was prompted by consecutive years of revenue declines, primarily due to the rise of online casinos. As a part of their turnaround strategy, Svenska Spel implemented various measures including organizational restructuring, changes in opening hours, a new restaurant concept, and staff reductions. However, these efforts did not fully succeed in reversing the decline in revenue.
Ola Enquist, CEO of Casino Cosmopol, expressed his disappointment about the closures.
“For over 20 years, Cosmopol has offered the citizens of Gothenburg and Malmö an international casino experience, which is now unfortunately coming to an end,” Enquist said.
After the closure of the Gothenburg and Malmö locations, the Casino Cosmopol venue in Stockholm will be the only remaining land-based casino in Sweden. The first Casino Cosmopol opened in Sundsvall in 2001, followed by Malmö in 2002, and Gothenburg and Stockholm in 2003.
Svenska Spel is preparing for a leadership change, as Anna Johnson is set to become the new CEO in June 2024. Johnson will succeed Patrik Hofbauer, who has been leading the company until now. This change in leadership comes at a crucial time for Svenska Spel, as they navigate the challenges faced by the land-based casino industry.
The closure of the Casino Cosmopol venues in Gothenburg and Malmö has elicited mixed reactions from the public. While some expressed disappointment at the loss of an international casino experience, others reflected on the changing landscape of the gambling industry and the rise of online casinos.
