Sweden’s national gambling regulator, Spelinspektionen, has published its financial report for the first quarter of 2025, revealing a modest decline in overall turnover and continued structural shifts in the market. Despite stable performance in some segments, total turnover across all licensed gambling operations reached SEK 6.61 billion (US$688.94 million)—representing a 1% drop compared to the same period last year.
Online Casino and Betting Still Leading, But Slightly Down
Online casino and sports betting remained the largest contributors to Sweden’s gambling revenue, generating SEK 4.28 billion in Q1. However, the segment experienced a marginal 0.2% year-on-year decline, indicating a possible plateau after years of strong digital growth. While minor, this dip signals a stabilization trend rather than rapid expansion in the online vertical.
Sharp Decline for Casino Cosmopol Signals Industry Shift
The steepest downturn was recorded by Casino Cosmopol, the country’s land-based casino operator owned by Svenska Spel. The brand brought in just SEK 26 million, marking a staggering 60% decline compared to Q1 of the previous year. This dramatic drop coincides with Svenska Spel’s recent closure of its last Casino Cosmopol venue, effectively ending the era of state-operated casinos in Sweden.
Before the pandemic, Casino Cosmopol routinely generated around SEK 245 million per quarter. However, figures never rebounded post-COVID, with revenue gradually slipping to around SEK 145 million before diminishing throughout 2024.
Public Benefit Gambling Posts Modest Growth
In contrast, gambling for public benefit, such as charity lotteries, reported a 3.5% increase, reaching SEK 886 million. Other public-benefit games like hall bingo remained stable at SEK 49 million, along with land-based gambling, which held firm at SEK 52 million.
These segments, though smaller in scale, have shown notable resilience and consistent engagement, especially among communities that support nonprofit organizations through regulated gambling.
State Lottery and Cash Machine Games See Modest Decline
The state-run lottery and gaming machines sector posted a 3% year-on-year decrease, totaling SEK 1.3 billion. While not as severe as Casino Cosmopol’s drop, this downward trend adds pressure on the state-controlled segments, which are increasingly struggling to compete with digital and unregulated alternatives.
Unlicensed Operators Still a Competitive Threat
Spelinspektionen’s figures only account for licensed gambling activities. However, the ATG (Swedish Horse Racing Totalisator Board) has flagged that unlicensed operators continue to command a significant share of the market, particularly in the online space. This trend complicates regulatory efforts and raises concerns about consumer protection, responsible gaming, and tax leakage.
Market Outlook: Stability with Structural Shifts
While the Swedish gambling market shows signs of stability, the decline in state-run and land-based operations, coupled with steady digital performance and growth in nonprofit segments, points to a transforming landscape. Regulatory focus is now likely to sharpen on channeling consumers toward licensed operators and combating offshore competition to preserve market integrity and consumer safety.
