In a landmark decision that reshapes the country’s gaming industry, Sweden’s national parliament, the Riksdag, has formally approved legislation to eliminate land-based casino gambling by January 2026. The ruling, which includes the closure of Casino Cosmopol’s last remaining venue in Stockholm, reflects a nationwide shift toward digital gambling channels. State-run operator Svenska Spel has supported the decision, pointing to a marked decline in visitor traffic, profitability, and the changing preferences of Swedish gamblers. As the curtain falls on traditional casinos, Sweden prepares for a future dominated by online platforms—and potentially, unintended regulatory challenges.

Riksdag Votes to Sunset Land-Based Casinos by 2026

Sweden’s legislature has officially greenlit a proposal that will see all physical casino operations cease by January 1, 2026. The legislation, which received majority support in parliament, marks the culmination of a phased closure strategy first proposed in May 2024.

According to lawmakers, the decision was driven by prolonged declines in footfall and profitability at the Casino Cosmopol venues. While online gaming platforms have grown in popularity, traditional casinos have struggled to attract a sustainable player base—especially in the aftermath of the COVID-19 pandemic and amid changing consumer behavior.

Casino Cosmopol Stockholm: The Final Holdout

Once a network of four properties, Casino Cosmopol now operates solely in Stockholm, employing just under 240 staff members. The other branches—in Sundsvall, Gothenburg, and Malmö—were shuttered between 2020 and 2023 due to operational inefficiencies and financial losses.

While the Stockholm location remains open “until further notice”, Svenska Spel has already initiated closure planning discussions, with the primary focus on employee support and transition assistance.

Svenska Spel Endorses the Phase-Out

In a statement that reflects alignment with the government’s view, Svenska Spel confirmed it supports the Riksdag’s decision. Ola Enquist, CEO of Casino Cosmopol, noted that the company had anticipated the ruling and had long accepted the irreversible market tilt toward online gambling.

“We share the government’s assessment. It is, of course, emotionally tough because it means that an era will end when the casino in Stockholm eventually closes. Our focus right now is to support our employees and continue to serve our guests.” – Ola Enquist

This public endorsement of the closure lends legitimacy to the transition strategy, even as it symbolizes the end of a historical chapter in Sweden’s state-regulated gambling landscape.

Financial Disparities Highlight Digital Dominance

Casino Cosmopol’s declining fortunes have become increasingly evident in the company’s earnings reports. In 2024, the brand posted revenue of just SEK165 million (approximately Rs 140 crore)—a 65% drop from the prior year.

In stark contrast, Svenska Spel’s lottery division, Tur, generated SEK5.14 billion in the same period. This performance gap underscores the growing irrelevance of brick-and-mortar operations in a digital-first economy and validates the government’s pivot toward scalable, online alternatives.

No New Casino Licenses Going Forward

Under the new legislation, no new land-based casino licenses will be issued after the law takes effect. Svenska Spel remains the sole entity ever authorized to operate physical casinos in the country, a monopoly now rendered moot by the 2026 phase-out.

This firm stance effectively seals the fate of all prospective land-based operators, ensuring that Sweden’s gaming industry will move forward with online betting, lotteries, and regulated digital casinos as its primary growth engines.

Regulatory Caution: Concerns from Spelinspektionen

While the Riksdag and Svenska Spel are united in their view, Sweden’s gambling regulator, Spelinspektionen, has expressed unease. The agency warned as early as August 2024 that removing legal, state-controlled casinos could create a void ripe for illegal operators to exploit.

The absence of regulated physical venues, some argue, may encourage black market gambling dens or unlicensed international websites to lure Swedish consumers—especially those who prefer in-person gaming experiences.

This concern introduces a regulatory gray zone that authorities may need to monitor closely in the months leading up to and following the January 2026 deadline.

Implications for the European Casino Industry

Sweden’s move could set a precedent across Europe, especially in markets where state-backed casinos are underperforming. As governments confront budgetary pressures and digital platforms offer higher margins with lower fixed costs, we may see other countries explore similar models of phasing out land-based gaming in favor of online alternatives.

At the same time, Sweden’s decision invites scrutiny over the social implications of such a transition. Without physical spaces governed by strict compliance protocols, player safety and responsible gambling standards will need to be enforced digitally, demanding more robust online monitoring tools.

The End of an Era—and the Beginning of a Digital-Only Future

The closure of Casino Cosmopol marks a historic inflection point in Sweden’s gambling industry. More than a policy shift, it represents a cultural pivot away from the opulence and social atmosphere of in-person casinos toward the efficiency, accessibility, and anonymity of online gambling.

Whether this bold step delivers on its promise of modernizing the industry while safeguarding consumers will depend on how effectively Sweden enforces its digital regulations and curbs the appeal of unlicensed alternatives.