Svenska Spel reports Q1 2025 revenue at SEK1.88 billion

Svenska Spel, Sweden’s state-run gaming company, has published its financial update for the first quarter of 2025, offering a detailed summary of the organization’s performance across its various business segments. The headline figure of SEK1.88 billion (approximately $200 million) in revenue for Q1 reflects a 4% year-on-year decrease, attributed mainly to reduced activity in the land-based gaming sector and tighter responsible gambling measures.

Despite the revenue dip, the company recorded a significant increase in operating profit and confirmed a major strategic decision concerning its land-based operations: the permanent closure of Casino Cosmopol, its only land-based casino, by January 2026.

A closer look at Q1 financial performance

Svenska Spel’s Q1 2025 results show a mixed bag of performance indicators. While overall revenue declined, the company managed to substantially improve its profitability. Operating profit rose by 96% year-on-year to SEK609 million, highlighting the effectiveness of recent restructuring efforts and cost efficiencies implemented over the past year.

Net gaming revenue (NGR) for games of chance dropped by 1%, a comparatively small decline that was partially blamed on the timing of the Easter holiday, which fell later in 2025. Easter traditionally boosts lottery ticket sales in Sweden, so the delayed holiday impacted expected gains during the first quarter.

Sports betting and online casino activities remained flat compared to the same period in 2024, signaling stability in these key online sectors. Meanwhile, Svenska Spel’s digital arm showed resilience and growth, with online revenue increasing by 7% year-on-year. The online segment also maintained a strong operating profit margin of 32%, reflecting its importance to the group’s long-term strategy.

Online growth offsets land-based decline

Svenska Spel has been steadily pivoting toward digital-first strategies, aligning with global industry trends. The 7% year-on-year growth in online operations underscores the group’s digital transformation success, and it continues to invest in technology, user experience, and responsible gaming tools.

This growth comes at a time when land-based gaming is in decline. Reduced engagement with physical slot machines and in-person gambling activities has had a noticeable impact on overall group revenue. This shift in consumer behavior, accelerated by post-pandemic digital habits and increasing regulation, has pressured operators with substantial land-based investments to reconsider their models.

Responsible gambling measures tighten revenue streams

A major factor contributing to the drop in revenue is Svenska Spel’s enhanced focus on promoting responsible gambling practices. In line with Swedish regulatory mandates and growing societal expectations, the company has implemented stricter customer protection policies.

These include enhanced affordability checks, self-exclusion tools, and marketing restrictions, all of which aim to reduce gambling-related harm. While these measures contribute to a more sustainable industry, they also lead to reduced short-term profitability, particularly in high-revenue sectors like slot machines and instant-win games.

CEO Anna Johnson reiterated the importance of this focus in a public statement:
“Through last year's major changes, including reorganisation, we have created space for investments in our focus areas – growth, sustainable gaming and transformation. The fact that we have space for investments is also proof that we are doing the right things and part of our strategy to create long-term sustainable value.”

Casino Cosmopol to close by January 2026

The most notable development in Q1 was the announcement regarding the future of Casino Cosmopol, the last of Svenska Spel’s land-based casinos. Following an initial proposal made in May 2024, the company confirmed that the Stockholm venue will permanently close no later than 1 January 2026.

The closure marks a significant shift in the Swedish gambling landscape, as Casino Cosmopol was once a flagship for state-controlled land-based gaming. The decision is rooted in a sustained decline in foot traffic, increasing operational costs, and a broader shift in consumer preferences toward digital platforms.

Strategic shifts and leadership changes

The first quarter of 2025 also saw strategic personnel changes aimed at steering the organization through its current transformation phase. In March, Svenska Spel appointed Amäni Radwan as the new Chief Financial Officer. Radwan brings with her extensive experience in corporate finance and will be instrumental in overseeing the company’s investment and restructuring plans.

Eva-Lotta Sjöstedt has been proposed to take on the role of Chairwoman at the board level. Her background in international business leadership and governance is expected to bring fresh strategic vision to Svenska Spel during a period of significant change and opportunity.

Partnerships and expansion efforts

In February, Svenska Spel revealed a strategic collaboration with Bragg Gaming, supporting its ongoing efforts to broaden and strengthen its digital gaming portfolio. The collaboration will allow Svenska Spel to leverage Bragg Gaming’s proprietary content and technology, further boosting its appeal to modern players.

This partnership is particularly important as competition in the Swedish online gambling market intensifies. Private operators are increasingly offering innovative and flexible gaming experiences, prompting Svenska Spel to modernize its platform and broaden its appeal while remaining compliant with regulatory standards.

Looking ahead: A future driven by digital innovation

As Svenska Spel continues to reshape its business model, digital transformation remains central to its strategy. Investments in new technologies, artificial intelligence for responsible gambling, and user-centric interfaces will be critical in attracting and retaining online customers.

The closure of Casino Cosmopol signals a broader industry trend — the slow phasing out of physical gambling venues in favor of scalable, data-driven digital platforms. Svenska Spel is positioning itself to lead this transition in Sweden, backed by strong governance, strategic partnerships, and a commitment to long-term sustainability.

While challenges remain, particularly around balancing profitability with social responsibility, Svenska Spel's Q1 2025 report suggests a company that is agile, forward-looking, and willing to evolve with the times.

Conclusion

In conclusion, Svenska Spel’s Q1 2025 results highlight a mixed performance, with a revenue decline tempered by significant growth in online operations and a notable rise in operating profit. The company’s ongoing commitment to responsible gambling and its strategic digital investments demonstrate its focus on long-term sustainability. The closure of Casino Cosmopol marks a pivotal moment in its transformation, signaling a shift towards more digital-first strategies as it adapts to evolving market trends.

FAQs

What was Svenska Spel's total revenue in Q1 2025?
The company reported SEK1.88 billion in total revenue for the first quarter of 2025, reflecting a 4% year-on-year decline.

Why did Svenska Spel's revenue decline in Q1 2025?
The decline was attributed to decreased land-based and slot machine activity, as well as stronger responsible gambling regulations.

How much did Svenska Spel's operating profit increase in Q1 2025?
Operating profit rose by 96% compared to Q1 2024, reaching SEK609 million.

Is Casino Cosmopol closing permanently?
Yes, Svenska Spel confirmed that Casino Cosmopol in Stockholm will shut down by 1 January 2026.

How did Svenska Spel’s online business perform in Q1 2025?
Online operations grew by 7% year-on-year and maintained a 32% operating profit margin.

What responsible gambling measures did Svenska Spel implement?
The company strengthened affordability checks, self-exclusion tools, and marketing restrictions to promote safer gambling.

Who is the new CFO of Svenska Spel?
Amäni Radwan was appointed as the group’s new Chief Financial Officer in March 2025.

Who is the new Chairwoman of Svenska Spel’s board?
Eva-Lotta Sjöstedt has been nominated as the new Chairwoman of the Board.

What partnership did Svenska Spel announce in early 2025?
The company partnered with Bragg Gaming to expand its online game offerings and technology base.

What are Svenska Spel’s strategic priorities for the future?
The group is focused on digital transformation, sustainable gaming, and long-term value creation.