The head of Sweden’s gambling trade body (BOS) believes that allowing private operators to compete could have saved the country’s land-based casino sector. Gustaf Hoffstedt, Secretary General for BOS, attributes the recent demise of this segment primarily to a fundamental lack of innovation under the state-run Svenska Spel monopoly.

Hoffstedt’s assessment comes in the wake of the closure of Svenska Spel’s Casino Cosmopol. As reported by iGaming Times, Hoffstedt sees the lack of innovation at Casino Cosmopol as one of the major factors behind its demise, stating that “Casino Cosmopol remained a monopoly to the end, which meant no competition or innovation,” and arguing that “If there’s no competition, innovation dies.”

The last remaining Casino Cosmopol venue in Stockholm closed its doors in April 2025, just weeks after the Swedish parliament (Riksdag) moved to formally end land-based gambling in the country. On April 2, the Riksdag announced that land-based casinos in Sweden no longer served their purpose, citing declining profitability and visitor numbers at Casino Cosmopol. A proposal to discontinue Casino Cosmopol was first tabled in May last year (2024), and the amendment is set to become effective from January 1, 2026, from which date land-based casinos will no longer be permitted in Sweden. Former Casino Cosmopol CEO Ola Enquist had previously highlighted, as reported by iGaming Times, “continued negative performance” across the division in recent years, attributing the decline to the rise of online gambling in Sweden, which has drawn more players away from land-based casinos.

Potential Role for Private Land-Based Casinos

Despite the prevailing shift to online gambling, Hoffstedt believes, as reported by iGaming Times, that land-based casinos could still fulfil an important role in Sweden’s gambling ecosystem. He suggested they could offer a touch of glitz and glamour to the tourism and leisure crowd. Hoffstedt stated his belief, as reported by iGaming Times, that land-based casinos “could be profitable in cities like Stockholm, Malmö, and Gothenburg - if they were open to private operators.”

He suggested that if the government were to reverse its decision, a number of BOS’ remote operators would likely be interested in securing a license. Hoffstedt also pointed out that many gambling businesses supporting the online sector have a direct interest in maintaining a healthy land-based sector. As an example, he explained, as reported by iGaming Times, that “Companies like Evolution partner with land-based casinos, which adds authenticity to their online offerings,” and that to “Lose that, and you lose a key selling point.”

Concerns Over Fueling the Black Market

Hoffstedt cautioned, as reported by iGaming Times, that the move to completely end land-based casinos in Sweden will likely inadvertently fuel black-market operators. Sweden already has one of the highest shares of online operators in Europe, according to the European Betting and Gaming Association (EGBA). Up to 68% of the country’s gross gambling revenue (GGR) is generated online, compared with just 32% in retail settings (prior to the final casino closure). The Swedish gambling market presents a particularly strong contrast between its cutting-edge online brands and the historically rigid, state-monopoly run land-based sector. This contrast, alongside the broader trend towards digitalisation, is believed by some to have played a significant role in the land-based sector’s decline.

In conclusion, BOS Secretary General Gustaf Hoffstedt attributes the demise of Sweden’s land-based casinos to a fundamental lack of competition and innovation under the state monopoly. He argues that allowing private operators could have ensured their profitability and a healthy role in the gambling ecosystem. He warns that the complete closure of these venues risks inadvertently boosting the black market, highlighting the importance of a robust regulated framework that can effectively channel players across all gambling verticals.