Sweden will no longer allow the operation of state-owned casinos, opening the road to the development of the online gambling sector.
Due to the nature of the state-issued licenses, Sweden’s highest decision-making body, the Riksdag, has voted in favor of outlawing gambling in casinos. The idea means that no actor will be able to get a license that permits gambling in casinos because the state gambling license is the only type of license that covers gambling in casinos.
In order to help the Swedish Gambling Authority (Spelinspektionen, or SGA) oversee money laundering related to gambling activities, the proposal states that the Authority will have more access to information about companies that engage in gambling activities, as well as about their patrons.
The Act’s modifications about gambling in casinos and penalties for money laundering offenses will go into effect on July 1, 2025, and January 1, 2026, respectively.
The decision of the Swedish parliament to approve the closing of state-owned casinos—the last one operating right now is Casino Cosmopol in Stockholm—by January 1, 2026, after which the country will completely stop issuing licenses for land-based casinos and focus on the development of the iGaming sector embodied in betting sites in Sweden, is for a reason.
The reason for the closure was a drop in revenue: in 2024, Casino Cosmopol’s income fell by 65% and amounted to only $16.9 million. The remaining branches of the network in Sundsvall, Gothenburg, and Malmö were closed even earlier amid falling attendance and an outflow of players to online.
The Swedish regulator SGA supported the initiative but warned of a possible threat of an increase in illegal offline gambling. As said, the regulator is asking the authorities for additional resources to monitor the situation after the closure of Casino Cosmopol.
