Spelinspektionen, the Swedish gambling regulator, has expressed significant concerns regarding the proposed discontinuation of Casino Cosmopol, Sweden’s state-owned land-based casino. The government’s decision to potentially shut down the business by January 2026, citing unprofitability and a failure to fulfill its initial purpose, is feared to lead to unintended consequences, including a potential rise in illegal gambling activities across Sweden.
Government’s stance on Casino Cosmopol:
Initially, Casino Cosmopol boasted four locations across the country. Yet, the business has seen a decline, with the Sundsvall venue closing in 2020 and the Gothenburg and Malmö casinos shuttering in January of this year. The Stockholm casino, now the only remaining venue, faces an uncertain future under the government’s current proposal, which would also impact approximately 200 employees.
While Spelinspektionen has not taken a definitive stance on the closure itself, the regulator has flagged several potential risks associated with shutting down Casino Cosmopol, as stated in its official press release (pdf). The main concern lies in the displacement of gamblers to underground and illegal gambling venues. As iGaming Business reports, Spelinspektionen notes, “There is today a prevalence of illegal gambling clubs in the country. However, the extent is unclear. In recent years, we have acted as an expert in a handful of cases where charges have been brought. Although the number of such cases is relatively few today, our assessment is that the law enforcement authorities are increasingly paying attention to illegal gambling.”
Challenges for law enforcement and regulatory adjustments:
The closure of Casino Cosmopol is expected to exacerbate issues with illegal gambling. Spelinspektionen anticipates a significant need for additional funding to combat these activities, which may include reallocating resources dedicated to other regulatory functions. This shift in focus could strain the regulator’s capacity to manage and mitigate illegal gambling operations effectively.
Beyond the direct implications of the casino’s closure, there are broader market dynamics to consider. Should Svenska Spel’s monopoly on operating land-based casinos end, other operators could enter the market. Spelinspektionen has observed a marked increase in interest from potential licensees, which suggests a likely shift toward a more competitive landscape. The regulator emphasized the need to bolster its resources to handle the potential influx of new commercial operators and ensure a well-regulated gambling environment.
In anticipation of these changes, Spelinspektionen plans to enhance its supervisory role in the gambling market. The regulator is preparing to expand its review processes and adapt its authorization strategies to better accommodate the evolving landscape. This includes closely monitoring developments and adjusting regulatory practices as necessary to maintain control over gambling activities and prevent the proliferation of illegal operations.