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Svenska Spel Shuts Down Gothenburg and Malmö’s Casino Cosmopol in a Game-Changing Move!

  1. Welcome to Farantube Sport: Breaking News in the Casino Industry
  2. Casino Cosmopol: December AML Penalty Adds to Financial Challenges
  3. New Tax Proposal: A Blow to Swedish Operators
  4. Kindred Group Faces Takeover Bid from FDJ

Welcome to Farantube Sport: Breaking News in the Casino Industry

In a surprising turn of events, the renowned Swedish land-based casino brand, Casino Cosmopol, has announced the permanent closure of two of its three venues. This decision comes as a response to the increasing popularity of online casinos, which has led to a decline in visitor numbers for Casino Cosmopol. The closures could potentially affect around 200 jobs, and union negotiations will play a crucial role in determining the final outcome.

The Impact of Closures: Gothenburg and Malmö

With the closure of the Gothenburg and Malmö venues, Sweden will be left with only one remaining land-based casino in Stockholm. This consolidation is an attempt by Svenska Spel, the parent company of Casino Cosmopol, to limit losses and adapt to changing market dynamics.

A Difficult Decision for Casino Cosmopol

Ola Enquist, chief executive of Casino Cosmopol, expressed his emotions regarding this tough decision. He acknowledged that it would have a significant impact on many employees but emphasized that various measures had been implemented to increase revenue and reduce costs. Unfortunately, these efforts have not yielded satisfactory results.

Casino Cosmopol: December AML Penalty Adds to Financial Challenges

Interestingly, this news follows another setback for Casino Cosmopol. In December, it was fined SEK2 million by Swedish regulator Spelinspektionen for failing to comply with anti-money laundering (AML) regulations. This penalty highlights the financial difficulties faced by the company.

Prior Warning: Q3 Report Reveals Revenue Stall

Back in October, Svenska Spel’s Q3 report revealed a halt in revenue and earnings for the Casino Cosmopol and Vegas areas of their business. The net gaming revenue decreased by 11% to SEK247 million, with increased competition from online games and restaurant casinos being cited as the primary reasons for the decline. An accompanying loss of SEK35 million further emphasized the challenges faced by Casino Cosmopol.

To counteract these challenges, Svenska Spel implemented various measures at Casino Cosmopol, such as adjusting opening times to compete with restaurant casinos. However, these efforts have proven insufficient, leading to the difficult decision to close two venues.

New Tax Proposal: A Blow to Swedish Operators

In September, Sweden’s government proposed raising the gambling tax rate from 18% to 22% of gross gaming revenue (GGR), effective from July 1, 2024. This potential tax increase aims to generate an additional SEK540 million in tax revenue annually. However, it has faced strong opposition from industry stakeholders.

Hasse Lord Skarplöth, chief executive of Aktiebolaget Trav och Galopp (ATG), has called on the government to reconsider its proposal. Instead of a uniform tax rate of 22%, Skarplöth suggests implementing a differentiated tax model that maintains the current rate for sports betting but increases it for online casinos.

Skarplöth stated, “The proposal for a higher excise tax on gambling companies came as a shock. Strengthened by our research, we have put significant effort into demonstrating the advantages of a differentiated gaming tax in Sweden. The hope is that our analysis will prompt legislators to take action and consider raising the tax on online casinos while keeping it unchanged for horse betting and sports.”

Kindred Group Faces Takeover Bid from FDJ

In other news, La Française des Jeux (FDJ) recently made an offer of SEK27.96 billion to acquire the entire outstanding share capital of Kindred Group. This offer represents a 24.4% premium over the closing price of Kindred shares on January 19, prior to the offer becoming public.

FDJ Kindred

Kindred Group has unanimously recommended its shareholders accept the offer, which is set to begin its acceptance period on or around February 20 and expire on November 19. If successful, this acquisition would create the second-largest operator in Europe’s gaming industry and lead to enhanced revenue and earnings growth for both FDJ and Kindred.

Filippo Bertuzzi

Filippo Bertuzzi

Ciao a tutti, sono Filippo, capo redattore di MyStakers. Da oltre un decennio, navigo nel vibrante universo dell'iGaming, immergendomi tra scommesse, casinò online e le emozioni che essi offrono. Benvenuti nel nostro mondo!

Ricorda che il gioco è vietato ai minori di 18 anni e di giocare sempre e solo quello che puoi permetterti di perdere. Su questo portale sosteniamo un’idea di gioco responsabile e consapevole: divertirsi usando sempre la testa. Ricorda inoltre che utilizziamo cookies per migliorare il contenuto delle recensioni. Accetti le nostre politiche di cookies? Altre info