Gustaf Hoffstedt, secretary general of Sweden’s gambling industry group BOS, believes the country’s land-based casino sector could have turned a profit if private operators had been allowed to compete with the Svenska Spel monopoly.
In an interview with iGB’s sister publication GGB, Gustaf Hoffstedt pointed to the lack of innovation at Svenska Spel’s Casino Cosmopol as a key reason for its decline.
“Casino Cosmopol operated as a monopoly until the end, which meant no competition and, therefore, no innovation,” he said. “Without competition, innovation doesn’t survive.”
In April, Sweden’s state-run casino monopoly shut down its last remaining location in Stockholm, shortly after lawmakers voted to phase out land-based gambling in the country.
On 2 April, the Riksdag declared that land-based casinos no longer fulfilled their role, citing falling profits and dwindling visitor numbers at Casino Cosmopol.
The proposal to close down Casino Cosmopol was first introduced in May 2023. The legal change will take effect on 1 January 2026, officially banning land-based casinos in Sweden from that date.
Casino Cosmopol CEO Ola Enquist noted at the time that the division had been underperforming for years, blaming the growing popularity of online gambling for drawing players away from physical casino venues.
Online suppliers could benefit from thriving land-based sector
Despite the growing dominance of online gambling, Gustaf Hoffstedt believes land-based casinos still have a valuable role to play in Sweden’s gambling landscape. He argues that such venues could add a sense of luxury and excitement for tourists and leisure seekers.
“I’m confident land-based casinos could thrive in cities like Stockholm, Malmö, and Gothenburg—if private operators were allowed to run them,” Hoffstedt said.
If the Swedish government reconsidered its decision to ban land-based casinos, several BOS-affiliated online operators would likely show interest in securing a licence.
According to Hoffstedt, many companies in the online gambling sector benefit from a strong land-based presence.
“Businesses like Evolution collaborate with land-based casinos to bring more realism to their online products,” he explained. “Without that partnership, you lose a key part of the appeal.”
Land-based closure could fuel black market
The decision to shut down land-based casinos in Sweden is expected to drive more activity toward unlicensed, black-market operators.
According to the European Betting and Gaming Association (EGBA), Sweden already has one of the highest rates of online gambling in Europe. Around 68% of the country’s gross gambling revenue (GGR) comes from online platforms, while just 32% came from land-based operations prior to the final casino closure.
Sweden’s gambling landscape shows a clear divide: on one side, modern, innovative online operators; on the other, a rigid land-based sector controlled by a state monopoly.
This stark contrast, coupled with the broader shift toward digital experiences, likely contributed to the sector’s downfall.
