SBC News Voice of the Sports Betting Industry
Svenska Spel has confirmed that it will close its Casino Cosmopol venues in the cities of Gothenburg and Malmö on Saturday, 24 February.
The decision follows Svenska Spel’s conclusion of negotiations with the respective trade unions on the closure of venues deemed ‘no longer profitable’ for Sweden’s state-owned gambling group.
The closure of Cosmopol’s Gothenburg and Malmö venues follows Svenska Spel’s strategic review of land-based gambling assets undertaken in 2023, to support the business’ post-pandemic recovery.
The Gothenburg and Malmö venues were noted as units that suffered consecutive yearly losses since 2020, which prompted Svenska Spel to initiate an action program including organizational restructuring, changing opening hours, a new restaurant concept, and staff reductions.
‘Despite a series of measures aimed at increasing revenues and reducing costs, the losses have continued,’ Svenska Spel determined.
Trade Unions have reported that the venue closures will affect approximately 100 employees in Gothenburg and 80 in Malmö, a figure below the expected redundancies of over 200 announced in January when Svenska Spel initiated negotiations.
Casino Cosmopol CEO Ola Enquist commented on 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. Until we close, my colleagues and I hope that our guests will visit us one last time so that we can have a nice conclusion together for the casinos.’
Following the closure of the Gothenburg and Malmö venues, the Casino Cosmopol in Stockholm will be the only remaining land-based casino in Sweden.
Full-year 2023 results showed a 2.5% decline in operating profits for Svenska Spel, down to SEK 2,333 million (€216m), a drop attributed to restructuring within the Casino Cosmopol & Vegas business area.
Svenska Spel is preparing for a leadership change as the incoming CEO Anna Johnson is set to succeed Patrik Hofbauer in June 2024.
