Svenska Spel has shut down its Casino Cosmopol property in Sundsvall after what the company describes as a several-year-old struggle with profitability, affecting nearly 70 workers.
Highlighting a steadily declining customer base over the last ten years, with numbers now meaning that there is insufficient visitation to continue running the business, the Swedish State-owned gambling operator’s board has decided to permanently close the casino.
In June the company said that during the second quarter of the year the closing of physical casinos and the disruption of global sporting events had a significant effect on net gaming revenues.
Svenska Spel ‘s Casino Cosmopol assets and divisions of Vegas gaming machines saw sales fall 61 percent in Q2, with net gaming revenue falling 19 percent to SEK 1.64bn (2019: SEK 2.03bn) in the period. Its full-year performance amounted to SEK 3.69 m, down 10 per cent year-on-year from SEK 4.09bn.
The winding up of the property, which first opened as Sweden’s first international casino in 2001, will take place as soon as possible and will affect 68 Sundsvall employees.
In addition to the declining customer base, the casino has also been affected by the sharp transition to online gaming and the company’s strict marketing rules.
Fellow Casino Cosmopol properties in Sweden, Göteborg and Malmö are said to have little effect on the decision, with a emphasis on the growth of operations, including the expansion of the venue in Göteborg.
Patrik Hofbauer, president and CEO of Svenska Spel, said of the decision: “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.”