Svenska Spel plans to formally shut the On line casino Cosmopol amenities in Malmö and Gothenburg. The principle cause for this choice is the restricted profitability of the amenities, the agency revealed on January 24.
The rise of on-line playing as a explanation for closure:
The rise in on-line casinos throughout current years has led to a lower within the variety of guests to the aforementioned On line casino Cosmopol’s amenities. In consequence, Svenska Spel’s land primarily based on line casino model has chosen to completely shut down 2 of its 3 amenities to “restrict losses.” Nevertheless, earlier than the ultimate choice is introduced, the union negotiations will happen.
The shutdown of the talked about two casinos signifies that Sweden will now have just one land-based on line casino, which might be On line casino Cosmopol in Stockholm. As well as, the liquidations may impression almost 200 jobs.
On this regard, the chief govt of On line casino Cosmopol, Ola Enquist, commented: “That is an emotionally robust step to take because it impacts lots of our staff. We have now taken plenty of measures in an effort to extend income and scale back prices. Regardless of laborious work, we see that the measures will not be enough.”
December’s AML superb provides to monetary woes:
The aforementioned closure happens following a superb of SEK2m that On line casino Cosmopol acquired for anti-money laundering (AML) violations, following an investigation by Spelinspektionen, the Swedish regulator. As well as, Svenska Spel additionally acquired a warning.
A touch of what’s to return for On line casino Cosmopol emerged throughout October. The report from the thrid quarter by Svenska Spel cited a slowdown in earnings and revenue due to the market-wide pressures on the retail section.
The Vegas areas of Svenska Spel’s operations and the On line casino Cosmopol skilled a 11% decline to SEK247m in web gaming revenue. For decline, the agency formally blamed risen competitors from restaurant casinos and on-line video games. Vegas and On line casino Cosmopol additionally skilled a lack of SEK35m.
As a response to this, Svenska adjusted enterprise strategies at On line casino Cosmopol, involving presenting recent opening hours to struggle competitors from restaurant casinos. Nevertheless, it didn’t work, therefore the aforementioned choice, in accordance with the supply.
Elevated playing tax fee:
Throughout September, the Regeringen, the Swedish authorities, revealed plans to extend the playing tax fee in Sweden from 18% to 22% of GGR. If validated, the increase in taxes within the nation will come into pressure from July 1 of this yr.
Such a step may acquire an additional SEK540m in tax revenue yearly. However the step was met with robust opponents from the playing trade.
On that notice, the chief govt of Aktiebolaget Trav och Galopp (ATG), Hasse Lord Skarplöth, urged the mentioned authorities to rethink its solutions. As an alternative of a blanket tax fee of twenty-two%, he advocates for a differentiated type of taxation, the place sports activities wagering will keep at 18% whereas on-line gaming will elevate its fee.
Commenting on that, he mentioned: “Strengthened by our analysis, we’ve got now put numerous vitality into demonstrating the benefits of a differentiated gaming tax in Sweden as effectively. The hope is now that our evaluation will transfer legislators from perception to motion. It’s a good place to begin for our proposal; hold the tax on horse betting and sports activities, however elevate it on on-line casinos.”
