Svenska Spel scheduled closing of Casino Cosmopol in Malmö and Gothenburg.

Based on their low profitability, Svenska Spel plans to close its Casino Cosmopol locations in Gothenburg and Malmö, operator said on Wednesday.
Cosmopol Sweden: Casino
To "limit losses," Swedish land-based casino brand Svenska Spel has chosen to permanently close two of its three locations as internet casino causes Casino Cosmopol's visitor counts to drop in recent years. Before a final decision is taken, union negotiations will now take place.

With the closures of Gothenburg and Malmö, only a Casino Cosmopol in Stockholm will remain as land-based casino in Sweden. About 200 employment could be affected by the liquidations.

Chief executive of Casino Cosmopol Ola Enquist said: "This is an emotionally difficult choice to take as it affects many of our staff.

"We have acted in several ways trying to boost income and cut expenses. We find via diligent effort that the measures are insufficient.

December AML penalty deepen financial hardship for Casino Cosmopol.
Following a Swedish regulator Spelinspektionen investigation, Casino Cosmopol was fined SEK2m (£154,000/€180,000) for anti-money laundering (AML) shortcomings. The scheduled closures follow from this. Svenska Spel received warnings as well.

December fines for anti-money laundering errors at Casino Cosmopol Sweden
October brought a hint of what was to come for Casino Cosmopol. The Q3 report from Svenska Spel showed a standstill in income and earnings brought on by retail sector market challenges generally.

Net gaming income dropped 11% to SEK247m in the territories of Casino Cosmopol and Vegas that Svenska Spel operates. Svenska Spel attributed the decline on growing competitiveness from internet games and restaurant casinos. Additionally noting a SEK35m loss were Casino Cosmopol and Vegas.

In response, Svenska Spel changed Casino Cosmopol's business policies, including adding extra opening hours to fight restaurant casino competitiveness. These steps haven't worked so, with losses still running unabatedly pressing Svenska Spel's hand.

Fresh tax burden on Swedish businesses
Sweden's government (Regeringen) revealed in September intentions to increase the gambling tax rate in the nation from 18% to 22% of gross gaming income (GGR). Should authorised, the tax increase will start to affect the nation from July 1, 2024.

Sweden channelisation ATG
The Swedish government has suggested a 4% rise in the gaming tax rate.
Regeringen thinks this kind of action might generate yearly extra tax income around SEK540m. The sector has, however, clearly opposed the plan with great force.

Chief executive Hasse Lord Skarplöth of Aktiebolaget Trav och Galopp has urged the government to review its ideas.

Skarplöth is advocating a differentiated tax rather than a flat 22% tax rate; sports betting stays at 18%, but igaming gets its rate raised.

"It came as a surprise, the plan for a higher excise tax on gaming companies," Skarplöth stated. " Shortly later, the will to fight woke up.

" strengthened by our studies, we have now invested a lot of effort on proving the benefits of a differentiated gaming tax in Sweden as. These days, our study should help politicians go from understanding to action.

"Keep the tax on horse betting and sports; keep it low; raise it on online casinos; it is a good beginning point for our proposal."

The takeover offer from Kindred
La Française des Jeux (FDJ) had also made an offer for SEK27.96bn to buy the whole outstanding share capital of Kindred Group in other Sweden news, reported last weekend by the Wall Street Journal.

FDJ, Brother
According to fdj, the contract for kindred will produce a "european gaming champion".
For every Swedish Depository Receipt in Kindred, FDJ has offered SEK130 in cash. This is 24.4% more than Kindred shares' SEK104.50 price on closure on 19 January, the last day of trade before the offer became public.

Kindred, a Swedish operator, has advised "unanimously" encouraged shareholders to accept the offer. The admission period runs from February 20, either exactly or somewhat later, to November 19.

FDJ said in its statement that the action will result in the second biggest operator in the gaming sector in Europe. It stated the purchase will produce a "European gaming champion" with more income and earnings increase.