The shutdown of Casino Cosmopol, according to a Swedish authority, could increase the risk of unlawful gambling.
19 Aug 2024
The planned shutdown of the Casino Cosmopol operation by state-owned operator Svenska Spel has concerned the Swedish regulator Spelinspektionen, which is worried that this would increase illegal gambling in the country's land-based market.
The Nordic nation Closing of the Casino Cosmopol
May saw a proposal from the Swedish government to end operations at the land-based Casino Cosmopol. Casino Cosmopol "no longer fulfils its purpose" according to the government, which also pointed to the company's persistent problems in turning a profit.
Sweden is home to just one remaining facility, the Casino Cosmopol Stockholm. Sundsvall closed in 2020, bringing the total number of locations to three. The Gothenburg and Malmö casinos were likewise permanently closed by Svenska Spel in January of this year.
Casino Cosmopol Stockholm must close no later than January 1, 2026, if the plan is to move forward. The shutdown is projected to affect around 200 employment.
Because of the closure, customers of Casino Cosmopol may seek out underground gambling establishments.
If the last casino were to go, Spelinspektionen would have "no substantive views" on the matter, according to their response to the idea. Nevertheless, it has raised questions over the potential effects on the legality of gambling in Sweden's brick-and-mortar establishments. This was also the position taken by the country's police force.
Spelinspektionen warned that existing clients of Casino Cosmopol may seek out underground gambling establishments if the casino were to close.
Legal gaming clubs are "very common" in the country, according to Spelinspektionen. "But how much is not apparent.
"We have been named as experts in a small number of cases involving allegations in the past few years. Our research leads us to believe that the government is paying more and more attention to the problem of illicit gambling, even if there have been few such cases recently.
Additional funding may be necessary for Spelinspektionen to combat unlawful gambling.
If the closure goes through as planned, Spelinspektionen has stated that it will require additional funds to address the anticipated increase in illicit land-based gaming. It may also be compelled to redistributing some resources as a result of this.
The Swedish anti-gambling agency Spelinspektionen warned that it could have to allocate more funds to combat illicit land-based gambling if the idea goes through. For illicit land-based gaming, this might mean reallocating resources.
The effects of the closure on the market as a whole were also discussed in Spelinspektionen. The removal of a requirement in Svenska Spel's licence to operate land-based casinos is contingent upon the measure's passage. This would open the door for additional operators to seek Swedish licenses.
Commercial casino operators' interest in applying for such licenses has increased, according to the regulator. Therefore, it would have to beef up its internal personnel to oversee market regulation and these licenses.
"We will closely monitor the growth of the gambling market in this area and, depending on its development, we may need to step up our supervision and assess the potential need for future authorisations," Spelinspektionen stated.
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