Svenska Spel Faces Declining Revenue as Land-Based Casino Operations Wind Down
Sweden’s state-owned gambling operator reports a modest drop in Q1 revenue, driven by the closure of physical casinos and a shifting market landscape.
Svenska Spel Revenue Down 4% in Q1
Svenska Spel, the state-controlled gambling monopoly in Sweden, has posted a 4 per cent year-on-year decline in net gaming revenue for the first quarter of 2025. Revenue came in at SEK 1.88 billion (€171.7 million), with the company still adjusting to the February 2024 closure of its Gothenburg and Malmö Casino Cosmopol venues.
The flagship Stockholm casino remains operational but is expected to close before the end of this year, effectively marking the end of state-run land-based casinos in Sweden.
Impact of Casino Closures Mitigated by Online Growth
Despite the permanent shutdown of two casinos partway through the quarter, the drop in overall revenue remained relatively contained. This reflects both the long-term erosion of Sweden’s land-based gambling market and the accelerating shift to online play.
Svenska Spel is leaning into this transition. The company recently launched a new lottery product, Lyckoplatsen, which it hopes will help offset the loss of physical casino income. While lottery revenue fell by 1 per cent year-on-year to SEK 1.2 billion—likely influenced by seasonal factors—sports betting and casino products saw marginal gains, reaching SEK 551 million, largely thanks to continued engagement with the Oddset Betbuilder tool.
Online gaming performed notably better, growing by 7 per cent year-on-year to SEK 1.167 billion.
In terms of profitability, Svenska Spel reported an operating profit of SEK 609 million for the quarter—a 96 per cent increase compared to the same period last year. This sharp rise is mainly attributed to cost savings following the downsizing of its land-based operations.
Ongoing Concerns About Unlicensed Gambling
While Svenska Spel focuses on modernising its product portfolio, concerns remain over the scale of unlicensed gambling activity in Sweden. According to new data from Spelinspektionen, the country’s gambling regulator, legal channelisation currently stands at 86 per cent.
Unlicensed operators attracting Swedish players continue to be linked to offshore jurisdictions, including Curaçao, the island of Anjouan in the Indian Ocean, and various skin betting platforms.