Sweden to Close Final Land-Based Casino as Parliament Declares They “No Longer Serve Their Purpose”

In a landmark decision that marks the end of an era for Sweden’s gambling industry, the Swedish parliament (Riksdag) has voted to close the country’s last remaining land-based casino. The April 2, 2025 decision will see Casino Cosmopol Stockholm permanently cease operations by January 1, 2026, effectively ending land-based casino gambling in Sweden and signaling a definitive shift toward digital gambling channels.

The parliamentary decision follows years of declining profitability and visitor numbers at Sweden’s land-based casinos. Legislators concluded that these establishments “no longer serve their purpose” in the country’s evolving gambling landscape. The closure follows a pattern of systematic downsizing by state-owned operator Svenska Spel, which has already shuttered Casino Cosmopol locations in Sundsvall, Gothenburg, and Malmö in recent years.

Key Takeaways

• Complete Market Exit: Sweden will exit the land-based casino market entirely by January 1, 2026, following the closure of Casino Cosmopol Stockholm.
• Legislative Change: The Swedish parliament’s decision includes a new law preventing the issuance of any future land-based casino licenses.
• Employment Impact: Nearly 240 employees at the Stockholm location will be affected, with Svenska Spel initiating union negotiations to manage the transition.
• Financial Decline: Casino Cosmopol generated just SEK165 million ($16.9 million) in 2024, representing a 65% decline from the previous year.
• Digital Shift: The closure reflects the dramatic shift toward online gambling, contrasting with Svenska Spel’s Tur lottery division which generated SEK5.14 billion ($526 million) in the same period.
• Property Implications: Svenska Spel owns the casino property at Kungsgatan 65 in Stockholm and will begin the sales process shortly.

The End of an Era in Swedish Gambling

The decision to close Casino Cosmopol Stockholm represents the culmination of a gradual withdrawal from the land-based casino market by Sweden. Casino Cosmopol, established following the regulation of casino gambling in Sweden in 1999, once operated four locations across the country: Sundsvall, Gothenburg, Malmö, and Stockholm.

The systematic closure of these venues began with Sundsvall in 2020, followed by Gothenburg and Malmö in February 2024, leaving Stockholm as the final operating location. The April 2025 parliamentary decision removes any ambiguity about the future of land-based casinos in Sweden, with lawmakers not only approving the closure but implementing legislative changes to prevent any future casino development.

“We share the government’s assessment and have been prepared for the Riksdag’s decision,” said Ola Enquist, CEO of Casino Cosmopol. “Nevertheless, it is of course emotionally tough because it means that an era will end when the casino in Stockholm eventually closes.”

The decision reflects a fundamental shift in Sweden’s gambling landscape, with digital channels now dominating the market. The contrast in performance between Svenska Spel’s land-based and digital operations tells the story clearly: while Casino Cosmopol generated SEK165 million ($16.9 million) in 2024, Svenska Spel’s Tur lottery division produced SEK5.14 billion ($526 million) in the same period.

Financial Decline and Market Evolution

Casino Cosmopol’s financial performance provides clear evidence of the sector’s challenges. The SEK165 million generated in 2024 represented a staggering 65% decline from the previous year, continuing a pattern of deteriorating performance.

This dramatic revenue drop followed years of declining visitor numbers and average spend, trends that accelerated following the COVID-19 pandemic and the reregulation of Sweden’s gambling market in 2019.

The reregulation introduced a competitive online gambling market with licensed international operators, drawing players away from land-based venues. Svenska Spel’s own digital transformation further contributed to the shift, with the company’s online casino and sports betting operations growing while its land-based business contracted.

Market analysts note that Sweden’s experience mirrors broader European trends, with land-based casinos struggling against the convenience and variety offered by online alternatives. However, Sweden’s decision to exit the land-based casino sector entirely represents a more dramatic step than seen in most other European markets, where hybrid models combining physical and digital operations remain common.

“The financial reality became impossible to ignore,” notes gambling industry analyst Maria Bergström. “When Casino Cosmopol’s revenue represents just 3% of Svenska Spel’s Tur division, maintaining expensive physical infrastructure and staffing becomes increasingly difficult to justify from a business perspective.”

The financial decline was particularly stark when viewed against historical performance. At their peak in the early 2010s, Casino Cosmopol locations collectively generated over SEK1.2 billion annually, employing more than 1,000 staff across Sweden. The Stockholm location alone once hosted approximately 400,000 visitors annually, figures that had declined by more than 70% by 2024.

Employment Impact and Transition Planning

The closure of Casino Cosmopol Stockholm will impact nearly 240 employees, adding to the hundreds of jobs already lost through previous Casino Cosmopol closures. Svenska Spel has initiated union negotiations to manage the transition process, with a focus on supporting affected staff.

“Our focus right now is to support our employees, and at the same time stay open and continue to take care of our guests,” explained Enquist. “We have initiated union negotiations and are holding a dialogue on how a liquidation should be carried out so that it is as good as possible. We are also keen to help our employees continue in their working lives after closure.”

Svenska Spel has indicated it will provide comprehensive transition support for affected employees, including potential redeployment opportunities within other divisions of the company, outplacement services, and skills development programs. The company plans to maintain full staffing levels through the closure period to ensure service quality for remaining guests.

The casino’s employees represent a diverse range of specialized skills—from dealers and pit bosses to security personnel and hospitality staff—many with decades of experience in the gaming industry. Finding comparable roles in Sweden’s evolving gambling sector presents significant challenges, as online operations typically require different skill sets and employ fewer staff relative to revenue.

“Casino employees possess highly specialized skills that don’t always translate directly to other industries,” notes Bergström. “The challenge for Svenska Spel and the affected unions will be identifying transferable skills and creating pathways to new careers for these experienced professionals.”

Property Considerations and Implementation Timeline

Svenska Spel owns the property at Kungsgatan 65 in Stockholm where Casino Cosmopol operates, adding a real estate dimension to the closure decision. The company has indicated it will begin the sales process for the property shortly, though specific timelines have not been announced.

The casino occupies a prime location in central Stockholm, with the historic building likely to attract significant interest from commercial developers. Property analysts suggest the site could be repurposed for retail, hospitality, or mixed-use development, given its central location and architectural significance.

The implementation timeline for the closure includes several key milestones:

• April 24, 2025: Svenska Spel will address the ownership instruction at its annual general meeting
• Q2-Q3 2025: Detailed closure plan to be finalized following union negotiations
• Q3-Q4 2025: Gradual winding down of operations expected
• January 1, 2026: Final closure date

Svenska Spel has committed to maintaining full service levels through the closure period, ensuring existing customers continue to receive the experience they expect. The company has also indicated it will organize commemorative events to mark the end of Sweden’s land-based casino era as the closure date approaches.

Regulatory Context and Market Implications

The decision to close Sweden’s last casino comes with significant regulatory implications. The parliamentary action included a new law preventing the issuance of any future land-based casino licenses in Sweden, effectively creating a permanent exit from the sector rather than a temporary market withdrawal.

This legislative approach prevents potential scenarios where the properties might be acquired by private operators for continued casino operations, ensuring the government’s decision represents a definitive market exit. It also eliminates the possibility of future governments easily reversing the decision, as new primary legislation would be required to reestablish land-based casinos.

The Swedish gambling regulator Spelinspektionen and the country’s police authority have expressed concerns that closing legal casinos could potentially drive more players to illegal gambling operations. However, in official statements, Spelinspektionen indicated it had “no substantive views” on the closure decision itself, focusing instead on ensuring the transition adheres to regulatory requirements.

From a market perspective, the closure creates a unique regulatory environment in Europe, where Sweden becomes the only country with a comprehensive regulated online gambling framework but no legal land-based casinos. This digital-only approach to casino gambling contrasts with neighboring Nordic countries, which maintain both online and land-based options.

“Sweden is essentially becoming a test case for a digital-only casino market,” observes Bergström. “While other European countries have seen online revenue outpace land-based, they’ve typically maintained physical casinos as part of a diverse gambling ecosystem. Sweden’s approach represents a more definitive pivot to digital channels.”

The market implications extend beyond Sweden, potentially influencing policy discussions in other jurisdictions where land-based casinos face similar challenges from digital competition. Industry observers suggest Sweden’s decision could accelerate conversations about the long-term viability of physical casinos in markets with strong digital adoption.

Svenska Spel’s Strategic Repositioning

For Svenska Spel, the closure represents the culmination of a strategic repositioning that began following Sweden’s gambling reregulation in 2019. The company has systematically shifted resources from land-based operations to digital channels, focusing on areas where it maintains competitive advantages in the liberalized market.

Svenska Spel’s Tur lottery division, which generated SEK5.14 billion ($526 million) in 2024, exemplifies this focus on digital strengths. As a state-owned operator, Svenska Spel maintains exclusive rights to lottery operations in Sweden, providing a stable revenue base that contrasts sharply with the competitive challenges faced in the casino sector.

The company’s Sport & Casino division has also evolved significantly, embracing digital channels while emphasizing responsible gambling practices as a market differentiator. This division has shown stronger performance than Casino Cosmopol, though it faces intense competition from international operators in Sweden’s regulated online market.

“Svenska Spel’s strategic pivot away from land-based casinos reflects both market realities and the company’s unique position as a state-owned operator,” notes gambling industry consultant Johanna Lindström. “Unlike private operators focused solely on profit maximization, Svenska Spel balances commercial objectives with public policy considerations, including responsible gambling and channelization goals.”

The company has indicated that resources previously allocated to Casino Cosmopol will be redirected toward strengthening its digital offerings and enhancing responsible gambling initiatives. This approach aligns with the Swedish government’s gambling policy objectives, which emphasize consumer protection alongside market competitiveness.

Historical Context and Cultural Significance

The closure of Casino Cosmopol Stockholm represents the end of a relatively short chapter in Sweden’s gambling history. Land-based casinos were only legalized in the country in 1999, significantly later than in many European markets. This late entry meant Sweden’s casino industry developed just as digital gambling was beginning its ascendancy, creating a compressed lifecycle from introduction to obsolescence.

Casino Cosmopol initially represented a modernization of Sweden’s gambling framework, introducing international-style casino gaming to a market previously limited to slot machines, lotteries, and horse racing. The venues were positioned as entertainment destinations rather than purely gambling facilities, featuring restaurants, bars, and live entertainment alongside gaming floors.

The cultural impact of Casino Cosmopol extended beyond gambling, with the venues hosting poker tournaments, corporate events, and entertainment performances that attracted visitors beyond typical casino patrons. The Stockholm location in particular became a notable venue in the city’s nightlife and entertainment scene.

“There’s undeniable cultural significance to the closure,” reflects Bergström. “For a generation of Swedes, Casino Cosmopol represented their introduction to casino gaming. These venues hosted countless memorable nights, celebrations, and even career-defining moments for professional poker players who cut their teeth in Casino Cosmopol tournaments.”

The closure creates a void in Sweden’s live poker scene, as Casino Cosmopol hosted the country’s most prestigious poker tournaments, including qualifying events for international series. While online poker remains popular and legally available, the elimination of live tournament venues represents a significant shift for the Swedish poker community.

Looking Forward: Sweden’s Digital-Only Casino Future

As Sweden prepares to become the first European nation with a regulated online gambling market but no legal land-based casinos, the industry faces several key questions about the implications of this digital-only approach:

Channelization Concerns

Industry stakeholders have raised concerns about “channelization”—the percentage of gambling activity occurring through licensed rather than black-market operators. With no legal land-based casino option, there’s potential for underground gambling establishments to emerge, particularly in urban areas previously served by Casino Cosmopol.

The Swedish gambling regulator will likely implement enhanced enforcement measures to prevent illegal gambling operations from filling the void left by Casino Cosmopol. This may include increased cooperation with law enforcement, enhanced monitoring of potential illegal operations, and public awareness campaigns about the risks of unlicensed gambling.

Digital Innovation Opportunities

The closure accelerates Sweden’s position as a digital-first gambling market, potentially driving innovation in virtual and live dealer experiences designed to replicate aspects of the physical casino environment. Svenska Spel and other licensed operators will likely expand their live dealer offerings to capture players seeking more social gambling experiences.

Emerging technologies like virtual reality and augmented reality gambling applications may find particular resonance in Sweden’s digital-only environment. Without legal land-based competitors, operators have stronger incentives to invest in creating immersive digital experiences that capture elements of physical casinos.

Responsible Gambling Implications

The shift to an exclusively digital casino market creates both challenges and opportunities for responsible gambling initiatives. Digital environments offer enhanced monitoring capabilities and intervention tools not possible in physical venues, but also remove the human observation element present in land-based operations.

Svenska Spel has indicated it will allocate additional resources to responsible gambling initiatives following the Casino Cosmopol closure, focusing on developing more sophisticated player behavior monitoring and intervention systems. This approach aligns with Sweden’s emphasis on consumer protection within its gambling regulatory framework.

Conclusion: A Definitive Market Evolution

The closure of Casino Cosmopol Stockholm and Sweden’s complete exit from the land-based casino sector represents one of the most definitive examples of gambling market evolution seen to date. While declining land-based revenue is a common theme across many gambling jurisdictions, Sweden’s decision to completely abandon the sector rather than seek hybrid solutions marks a distinctive approach.

“This decision reflects Sweden’s pragmatic assessment of market realities,” concludes Bergström. “Rather than maintaining land-based casinos for historical or sentimental reasons, Swedish authorities have acknowledged the fundamental shift in consumer preferences toward digital channels.”

The January 2026 closure will represent both an ending and a beginning—the conclusion of Sweden’s brief experiment with land-based casinos and the commencement of a new phase as Europe’s first major digital-only casino market. Gambling regulators and operators worldwide will closely watch how this transition unfolds and whether other jurisdictions follow Sweden’s lead.

As Ola Enquist reflected: “It is of course emotionally tough because it means that an era will end when the casino in Stockholm eventually closes.” For Sweden’s gambling industry, that ending appears to be the beginning of a digital-only future.

References

1. G3 Newswire. (2025). “Casino Cosmopol to Close by Start of Next Year as Land-Based ‘No Longer Serves a Purpose’.”
2. The Gamblest. (2025). “Sweden to Close the Final Land-Based Casino.”
3. Yogonet. (2025). “Sweden to End Land-Based Casino Gambling by 2026.”
4. World Casino Directory. (2025). “Sweden Moves to Close Casino Cosmopol and End Land-Based Casino Gambling.”