Spelinspektionen reports 1% decline in Q1 gambling revenue

The Swedish Gambling Authority, Spelinspektionen, has released its financial figures for the first quarter of 2025, offering a snapshot of how the country’s licensed gambling operators have performed at the start of the year. The total gross turnover for the licensed gambling sector reached SEK 6.61 billion (approximately USD 688.94 million), reflecting a 1% decrease compared to the same quarter last year. While this marginal decline may not sound alarm bells on its own, the breakdown of the segments paints a more nuanced picture of shifts within Sweden’s legal gambling market.

Crucially, these statistics refer solely to the regulated sector and include data from operators who are fully licensed and legally permitted to operate in Sweden. The reported figures reflect gross gaming revenue (GGR), which is determined by subtracting the total amount paid out in player winnings from the total amount wagered.

Online gambling continues to dominate but growth stagnates

Online casinos and betting see slight decline

Online casino and betting remains the largest segment within the Swedish gambling market, generating SEK 4.28 billion in the first quarter. This segment alone accounts for over 60% of the total turnover. However, while it retains its top position, the sector experienced a slight year-on-year decrease of 0.2%, signaling potential market saturation or player fatigue following years of growth post-legalisation.

Several factors may contribute to this marginal contraction. Increased consumer awareness of responsible gambling, stricter enforcement of licensing regulations, and marketing restrictions could be having a cumulative effect. Moreover, as competition stiffens within the digital gambling space, operators may find it more difficult to attract new users or stimulate higher activity from existing players.

Steep decline for state-run Casino Cosmopol

Casino Cosmopol records a dramatic 60% drop

Perhaps the most notable shift within the Q1 2025 data is the precipitous fall in revenue from Casino Cosmopol, the state-operated land-based casino brand managed by Svenska Spel. The venue's turnover plummeted by a staggering 60% to just SEK 26 million—a sharp contrast to its historical performance.

Before the COVID-19 pandemic, Casino Cosmopol routinely generated around SEK 245 million quarterly. Even post-pandemic, despite reduced operations, it was averaging a modest SEK 145 million. However, with the closure of its final remaining venue earlier this year, Casino Cosmopol has effectively exited the Swedish gambling landscape.

Svenska Spel’s decision to close its Casino Cosmopol properties appears to have been driven by sustained underperformance, evolving consumer behavior favoring online formats, and operational cost pressures. While this move might help the state-owned entity stabilize its broader gambling portfolio, it marks the end of an era for brick-and-mortar casino gaming in Sweden.

State lottery and cash machine games also decline

3% decrease reflects changing player preferences

Another noteworthy decline occurred in the state lottery and cash machine segment, which fell by 3% compared to the previous year. This category brought in SEK 1.3 billion during the first quarter. Though still a substantial figure, the fall may be indicative of broader demographic and technological changes impacting the appeal of traditional lottery products.

The continued integration of digital technologies into everyday life has fundamentally changed how players engage with games of chance. While the traditional lottery retains a loyal customer base, its share of total gambling revenue is slowly eroding in favor of faster, more interactive online options.

Stability in public benefit and land-based gambling

Gambling for public purposes shows growth

One of the few areas that reported positive movement in Q1 2025 was gambling for public benefit. This segment includes licensed lotteries and other games organized by non-profit organizations, with all proceeds directed toward socially beneficial causes such as education, sports, or charitable activities. This category experienced a 3.5% year-on-year increase, reaching SEK 886 million.

Meanwhile, land-based amusement gambling—encompassing hall bingo and various smaller-scale activities—remained stable. Hall bingo maintained a consistent turnover of SEK 49 million, and land-based amusement gambling remained stable at SEK 52 million without notable variation.

This relative stability demonstrates the enduring appeal of community-based gambling formats, particularly among older demographics. These segments, though small in volume, remain important from a cultural and regulatory standpoint, given their ties to public welfare and localized engagement.

Concerns over unlicensed operators persist

ATG warns of growing shadow market

While Spelinspektionen’s report offers detailed insight into the licensed sector, it does not account for unregulated operators that continue to serve Swedish consumers illegally. In this context, the horse racing betting operator ATG (Aktiebolaget Trav och Galopp) has raised concerns over the sustained presence of unlicensed platforms within Sweden.

According to ATG, these operators capture a “significant portion” of the overall gambling activity in the country. Their operations undermine the legal market, reduce tax revenues, and expose consumers to risks due to lack of oversight, such as insufficient age verification or responsible gambling tools.

Efforts by Spelinspektionen and other authorities to clamp down on illegal sites have included IP blocking orders, financial transaction restrictions, and cooperation with international regulators. Nevertheless, the internet's unrestricted reach remains a significant obstacle to successful regulation enforcement.

Regulatory implications and the road ahead

A cautious path for future reforms

The marginal overall decrease in gambling turnover, while not alarming on its own, underscores the dynamic state of Sweden’s gambling ecosystem. For lawmakers and regulators, the current environment necessitates a balanced approach—promoting a sustainable legal market while protecting consumers from harm and deterring illegal activity.

The potential closure of more underperforming segments or further declines in land-based gaming may prompt calls for updated regulation, especially if operators seek to pivot more aggressively into digital spaces. However, any significant reforms will need to navigate public opinion, legal constraints, and the economic interests of state and private stakeholders.

For now, the focus remains on ensuring transparency, strengthening oversight, and improving cooperation between licensed entities and authorities to mitigate risks in an evolving market.

Conclusion

Spelinspektionen’s Q1 2025 report reflects a gambling market that is showing early signs of maturity. The overall dip of 1% in turnover may seem modest, but the deeper segmental changes—particularly the closure of Casino Cosmopol and the shift in online casino performance—suggest a market that is consolidating and re-evaluating its long-term direction.

While some sectors like public benefit gambling remain stable or even growing, others are clearly facing new headwinds. The continued existence of unlicensed operators further complicates the landscape, and regulators will need to remain vigilant.

As Sweden moves further into 2025, all eyes will be on whether upcoming quarters continue these trends or if new strategies and reforms shift the momentum within this tightly regulated industry.

FAQs

What is the total gambling turnover in Sweden for Q1 2025?
The total turnover reported by Spelinspektionen for Q1 2025 is SEK 6.61 billion, reflecting a 1% year-on-year decrease.

Which gambling segment generates the highest revenue in Sweden?
Online casino and betting remain the largest contributors, bringing in SEK 4.28 billion in the first quarter of 2025.

Why did Casino Cosmopol's revenue drop so significantly?
Casino Cosmopol experienced a 60% decline due to Svenska Spel’s closure of its final land-based venue, signaling the end of its operations.

How much did the state lottery and cash machines earn in Q1 2025?
These segments collectively generated SEK 1.3 billion, representing a 3% decrease compared to the previous year.

Are public benefit gambling activities growing in Sweden?
Yes, gambling for public purposes increased by 3.5%, reaching SEK 886 million during the quarter.

What is hall bingo’s performance in Q1 2025?
Hall bingo remained steady with a turnover of SEK 49 million, showing no change from the previous year.

What role do unlicensed operators play in Sweden’s market?
Unlicensed platforms continue to capture a significant share, posing risks to players and legal operators alike.

Is land-based gambling declining in Sweden?
Yes, especially with the closure of Casino Cosmopol, though smaller land-based segments like amusement gambling remained stable.

How is Sweden regulating unlicensed gambling?
Spelinspektionen uses tools like IP blocking and financial restrictions, but enforcement remains challenging due to cross-border operations.

What trends are shaping the future of gambling in Sweden?
Digital transformation, regulatory scrutiny, consumer protection, and the reduction of land-based operations are key shaping forces.