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Svenska Spel is taking the sales process for the last state-owned casino in Sweden, Casino Cosmopol, a step forward.
By selling the casino, located at Kungsgatan 65 in Stockholm, Svenska Spel looks to create value for the company and ensure that what it described as a unique building is now put to good use.
Earlier this year, the firm initiated procurements to hire a transaction consultant and a transaction lawyer for the sale. With the procurements now complete, Cushman & Wakefield and TM & Partners have been brought in to carry out the sale due to their experience of similar deals.
There are now no traces of Sweden’s state land-based gambling heritage left as Casino Cosmopol – the last remaining bastion of the Swedish national brick-and-mortar industry – looks set to close its doors forever.
Ola Enquist, CEO of Casino Cosmopol, noted: “Svenska Spel is selling the property at Kungsgatan 65 to create value for the company and ensure that the unique building is put to use.
“We are therefore pleased to begin the collaboration with Cushman & Wakefield and TM & Partners. It feels safe to work with partners who have solid experience and expertise in the area, and who have previously carried out several sales of this size in a professional and good way for all parties.”
A global decline for bricks-and-mortar?
Since the COVID-19 pandemic, the growth of online gambling has only escalated, and physical casinos of this kind continue to shut down.
A similar trend happened in the UK, with the number of high street bookmakers in Britain having plunged by around 30% since 2020, according to figures from the Local Data Company.
The scale of this decline puts retail betting firms as the second fastest disappearing business from British high streets, after banks, which are also heading towards a completely online trade.
Meanwhile, in Australia, Star Entertainment Group is reportedly in financial trouble and may soon divest properties or close operations. Furthermore, Casinos Austria has recently wanted that up to five out of 12 smaller venues could shut due to a new gambling tax hike.
Returning to Sweden, the future of Casino Cosmopol had been uncertain for some time, and according to the group, both profitability and visitor numbers were dropping for several years.
Svenska Spel first confirmed the news of the soon-closure on 25 April after receiving a change in ownership instruction the day before.
Enquis said at the time: “It has been known for some time that the ownership instruction would be changed. Our focus is now on our employees to help them take the next step in their professional lives.”
Cushman & Wakefield’s will now take on responsibilities such as strategic advice, market analysis, marketing the property as well as implementing the sales process. Meanwhile, TM & Partners’ will give legal transaction advice in regards to the sale of Hasseln 1.
“Palladium’s magnificent premises connected to well-functioning office space will be given new life. Showroom, headquarters or entertainment venue in national or international ownership remains to be seen, but the location at the central station opens up many options, added Sven-Olof Johansson, Partner Capital Markets, Cushman & Wakefield.
Due to the closure of a further two Casino Cosmopol venues early last year, Svenska Spel’s recent Q1 report saw revenue take a 4.1% hit. However, net profit still rocketed up to just over 73%.
Net gaming revenue for the quarter stood at SEK1.88bn (£145m), falling 4.1% short of the previous year with only the sport & casino segment reporting growth.
