Swedish Lawmakers Approve Exit from State-Run Physical Casinos

Swedish Lawmakers Approve Exit from State-Run Physical Casinos

Sweden has initiated a formal departure from its state-run land-based casino model following parliamentary approval to eliminate physical casino operations. The legislative move finalizes the plan to close Casino Cosmopol, the last remaining land-based casino operated by Svenska Spel. It prevents the issuance of new licenses for similar venues in the future.

The decision aligns with a longer-term shift in national gambling policy, one that increasingly favors regulated online offerings over traditional in-person casino models. This development comes after a phased withdrawal that began earlier in the year with the closure of Casino Cosmopol's Gothenburg and Malmö branches, leaving the Stockholm location as the sole operating venue.

Under the approved measures, the government will remove the legal provisions currently allowing Svenska Spel to offer land-based casino services. By January 2026, the physical casino format will be fully dissolved. The real estate associated with the Stockholm venue, located at Kungsgatan 65, is expected to be sold. No plans have been announced to preserve the Casino Cosmopol brand in the digital environment.

The decision is based on an evaluation that the current land-based model no longer delivers the outcomes it was initially designed to produce. The government has stated that Casino Cosmopol has faced persistent operational challenges, particularly long-term profitability. Svenska Spel acknowledged this analysis and did not oppose the legislative change.

CEO Ola Enquist addressed the transition by confirming that the Stockholm venue would continue operating in the short term while preparations are made for final closure. She noted that a structured support plan is being developed for the casino's staff, which numbers around 240. Discussions with unions are ongoing regarding employee transition measures.

The financial results from the previous year reflect the scale of the shift in market behavior. Casino Cosmopol generated SEK 165 million in 2024, marking a 65% decline compared to the prior year. In contrast, Svenska Spel's lottery division, Tur, recorded SEK 5.14 billion in revenue, highlighting the growing separation between digital and physical gambling returns in Sweden's regulated market.

This structural reallocation is not unique to Sweden. Across European markets, regulators and operators have been reassessing the long-term value of physical venues, particularly as consumers gravitate toward digital platforms. The closure of Casino Cosmopol may be viewed as both a reflection of this trend and a strategic step to consolidate state-managed gambling under scalable, digital-first models.

Although the government's reasoning is based on market data and changing player preferences, the transition raises questions about enforcement and oversight. Spelinspektionen, the Swedish gambling authority, has previously expressed concern that removing land-based casinos from the regulatory framework could create space for unlicensed alternatives. The authority has requested additional resources to strengthen its monitoring capabilities, especially as more player activity moves to the digital environment.

The Swedish police have echoed these concerns, suggesting that declining regulated physical options may lead to unintended consequences, including potential growth in unregulated gambling networks. Law enforcement may find it more challenging to monitor certain gambling behaviors or detect irregular activity without licensed physical spaces. This has added urgency to calls for enhanced digital oversight mechanisms.

From an operational standpoint, the phase-out of Casino Cosmopol creates opportunities for licensed online platforms to absorb a market segment that previously relied on in-person gambling environments. This includes players who may be unfamiliar with digital tools but who may now seek alternatives within regulated online frameworks. Removing brick-and-mortar venues also places greater importance on the role of digital interfaces, platform reliability, and compliance with Sweden's gambling laws.

It remains unclear whether the Casino Cosmopol brand will be reconfigured for use in the online space. If not, the closure would represent not just a shift in infrastructure but a symbolic end to one of the most recognizable physical components of Sweden's gambling system.

This development presents opportunities and responsibilities for stakeholders in the online casino industry. Licensed operators will need to adapt their services to accommodate new users, some of whom may approach digital gambling with different expectations shaped by years of land-based interaction. At the same time, they will face increasing scrutiny from both regulators and users regarding transparency, fairness, and responsible gambling practices.

The transition away from land-based casinos marks a regulatory pivot rather than a simple market withdrawal. While the government's legislative decision ends one chapter, it opens another that will be defined by the interplay between regulation, technology, and user behavior in a digital-first gambling environment.

The next phase for Sweden's gambling sector will likely involve intensified efforts to build oversight tools that reflect the realities of a fully online model. This includes monitoring activity and ensuring that digital services are accessible, compliant, and positioned to absorb the operational vacuum left behind by the end of physical casino operations.

As the 2026 deadline approaches, this decision's regulatory, social, and commercial implications will continue to unfold. Whether it results in a more resilient gambling environment or introduces new risks will depend largely on how stakeholders across the industry respond in the interim.