The Swedish state-owned gambling operator, Svenska Spel, announced Wednesday the possibility to close two of its land-based venues. The potential closure is related to Casino Cosmopol in Gothenburg and Malmö.
Previously, Svenska Spel implemented an action plan that sought to revitalize Casino Cosmopol. This plan included a significant restructuring of the organization, along with a reduction of the number of employees, a restaurant with a simplified concept, as well as reducing the working hours and days.
Despite the operator’s efforts, the share of online gambling continues to grow, resulting in further negative development for Casino Cosmopol. As a result, Svenska Spel confirmed it intends to close the two venues while seeking to “limit losses.”
Still, the operator explained that the closure of Casino Cosmopol in Gothenburg and Malmö is subject to negotiations with the union. Provided that Svenska Spel discontinues its operations in Gothenburg, some 120 employees would be affected. On the other hand, shutting the doors of Casino Cosmopol in Malmö may impact 80 more workers. In case the aforementioned casinos close their doors, the operator would be left with Casino Cosmopol in Stockholm, its largest venue and the last remaining brick-and-mortar casino in Sweden.
According to Svenska Spel, its intention to close two casinos comes amid a decreasing share of the land-based sector within the gaming vertical in the country. The state-owned operator explained that a major shift toward the online gambling sector was observed in 2019 with the reregulation of the industry. Then, it said, the pandemic further impacted its land-based operations considering the closure of Casino Cosmopol.
The Difficult Decision Affects Many of the Operator’s Employees
Patrik Hofbauer, Svenska Spel’s president and CEO, spoke about the ongoing trend that sees more people shifting toward the online gambling sector. He added that for a decade, online casinos grew exponentially. “Despite significant measures, we see challenges to reach profitability for Casino Cosmopol,” said Hofbauer. Finally, he explained that due to the increasing losses, a difficult decision was taken.
“This is an emotionally tough step to take as it affects many of our employees. We have taken a number of measures in an effort to increase revenue and reduce costs.“
Ola Enquist, CEO at Casino Cosmopol
Ola Enquist, Casino Cosmopol’s CEO, also highlighted the efforts of the operator to reduce costs and at the same time increase revenue. Yet, with the effect of the measures deemed insufficient, she said that Svenska Spel had to take the tough decision that affects a number of its employees. “Therefore, we now intend to wind down two of our casinos,” said Enquist in conclusion.