Svenska Spel to permanently close Casino Cosmopol site as Covid-19 declines hit home

Svenska Spel has said it will permanently close its flagship Casino Cosmopol property in Sundsvall following a significant downturn in customers and revenue following the coronavirus pandemic. The former Swedish monopoly operator cited a lack of a “sufficient customer base” in the Sundsvall property for its decision, with 68 jobs to be shed as part of the closure. The casino has struggled to maintain profitability in recent years and the continuous downward curve in visitor numbers has seen Svenska Spel bring the curtain down on operations. In its Q2 2020 financial report, Svenska Spel reported a 60% year-on-year decline in its Casino Cosmopol operations, with Q2 revenue from the land-based vertical shrinking to just SEK170m (£15m). The Swedish operator also pointed to the shift towards online gaming and marketing regulations which impacted its land-based business. All casinos in Sweden are currently closed due to the coronavirus pandemic, however Svenska Spel has confirmed that there are no plans to permanently close casinos in Gothenburg and Malmö by the operator. Instead, the focus has shifted to expanding operations in Gothenburg, although it is unclear if those employees impacted by the closure in Sundsvall will be transferred to the expanded business. Patrik Hofbauer, Svenska Spel CEO, said that while the decision was a difficult one to make, it was a necessity to preserve the business’ faltering revenue. Hofbauer said: “It is a sad message to have to give to our talented employees. But we must adapt to prevailing market conditions. “With a constantly declining customer base, the casino in Sundsvall is no longer profitable and then it is unfortunately not commercially defensible to continue to run the business,” he added. Overall, Svenska Spel Q2 2020 net gaming revenue (NGR) fell by 19% to SEK1,643m (£144m) while operating profits dropped by SEK60m during Q2 to SEK473m (£41.7m) following the “major impact” of closures to its land-based casino operations and suspension of Swedish sport due to Covid-19.