Swedish lottery and gaming group Svenska Spel has confirmed that it will close its Casino Cosmopol operations in the cities of Gothenburg and Malmö on Saturday, February 24.
The decision follows negotiations with the respective trade unions on the closure of venues deemed ‘no longer profitable’ for the Sweden state-owned gambling group. The venue closures will impact around 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.
In 2023, Svenska Spel initiated a strategic review of its Casino Cosmopol and Vegas Slot units, following consecutive years of revenue declines amid the rise of online casinos. To turn around Cosmopol’s performance, Svenska Spel initiated an action program including organizational restructuring, changing opening hours, a new restaurant concept, and staff reductions. The efforts, however, did not fully succeed in helping with the casinos’ revenue decreases.
Ola Enquist, Casino Cosmopol CEO, commented: “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.”
Casino Cosmopol, Stockholm
After the closure of Gothenburg and Malmö locations, the Casino Cosmopol venue 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 ($233.6 million), a drop attributed to restructuring within the Casino Cosmopol & Vegas business area.
Svenska Spel is also preparing for a leadership change as the company will be led by new CEO Anna Johnson, succeeding Patrik Hofbauer in June 2024.
Casino Cosmopol is a wholly-owned subsidiary of AB Svenska Spel, which in 1999 was commissioned by the government to offer land-based casino games and establish international casinos in Sweden. The first casino was opened in Sundsvall in 2001 (closed down in 2020). Later that year, the casino opened in Malmö, followed by Gothenburg in 2002 and Stockholm in 2003.
Original article: https://www.yogonet.com/international/noticias/2024/02/21/70911-sweden-svenska-spel-to-shut-down-gothenburg-and-malm-venues-this-weekend
