SWEDEN Trends and Developments Contributed by: Stefan Widmark, Hans Eriksson and Petter Larsson, Westerberg & Partners
pending the upcoming decision from the Administra- tive Court of Appeal. End of Full-Scale Casino Operations in Sweden In the spring of 2025, the Swedish parliament adopted a proposal to prohibit land-based full-scale casino operations in Sweden from 1 January 2026. Even after the re-regulation of the Swedish gambling market, full-scale casino operations had remained exclusively reserved for the state-owned operator. This prohibition must be seen in the context of the closure of three out of Sweden’s four casinos in recent years due to a lack of profitability. Seemingly, the COVID-19 pandemic dealt a severe blow to the indus- try, with visitor numbers in 2022 and 2023 dropping to almost half of pre-pandemic levels. It is difficult to determine whether the pandemic and its restrictions were the decisive factor that sealed the fate of Swe- den’s land-based casino sector, as the global reces- sion and rising inflation likely also played a role. The main rationale for ending the Swedish land- based casino regime was that it arguably no longer fulfilled its primary objectives – namely, to generate state income and effectively prevent illegal land-based casino operations. As regards the latter, a study report from 2006 indicates that the opening of the casinos in 2000 only had a marginal effect on illegal land-based casino operations. Moreover, the provision of land- based casino games at certain licensed restaurants is maintained, which arguably could help prevent a surge in illegal casino operations following the closure of the licensed casinos.
The decision not to allow private operators to fill the void of the unprofitable state-owned casinos has drawn criticism from within the Swedish gambling industry. Aside from the obvious threat of increased opportunities for illegal operators, arguments relating to jobs and Sweden’s appeal as a tourist nation have been raised. While the closing of the state-owned casinos appears sensible considering their poor profitability and limited success in combating illegal casino operations, it seems short-sighted not to have properly explored the possibility of granting land- based casino licences to private operators. Indeed, land-based gambling venues arguably offer greater opportunities for effective, on-site RG measures to support customers. The next couple of years will show whether the end of the land-based casino regime in Sweden leads to an increase in illegal operations. However, for the foreseeable future it seems unlikely that Sweden will reconsider the question of allowing private operators to enter this segment of the gambling market.
501 CHAMBERS.COM
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