Sundsvall Casino operated by Svenska Spel is shut down.
Sweden's government-owned gaming company, Svenska Spel, is shutting down its Cosmopol Casino in Sundsvall permanently. The casino's revenues and visitor numbers had been decreasing for years even before the COVID-19 pandemic hit. The four Cosmopol Casino locations in Stockholm, Gothenburg, and Malmö remain closed, affecting about 900 employees. Some of them are being offered retraining. How will things develop further?
Closing doors on a historic casino
The Swedish operator Svenska Spel has publicly stated its plans to close the land-based Cosmopol Casino in Sundsvall. This location is significant as it was Sweden's first international casino when it opened in 2001. However, the casino has been struggling with steadily decreasing profits and visitor numbers in recent years. The current COVID-19 crisis may have been a contributing factor.
Although the coronavirus may have played a part in the decision, Svenska Spel insists that the casino's declining customer base and the digitalization of gambling are the main reasons for its closure. Since 2010, the number of players has been falling, resulting in a deterioration of the property's financial performance. The business has become unsustainable.
The closure takes effect immediately, impacting 68 employees. Svenska Spel's President and CEO Patrik Hofbauer expressed concern for the employees and acknowledged the tough times but said that it was necessary to adapt to the existing market conditions. Hofbauer also assured that the shutdown of the Sundsvall site would not affect the other three properties in Stockholm, Gothenburg, and Malmö.
Sundsvall casino shut down due to COVID-19
Just like many other casinos globally (e.g., in the United States, the UK, and Macau), Cosmopol Casino closed its doors due to the COVID-19 outbreak. Since March 29, all four of Svenska Spel's Cosmopol sites have been shut down – in Stockholm, Gothenburg, Malmö, and Sundsvall. More than 800 of the 900 employees have been furloughed with no reopening date announced yet.
Gatherings of more than 50 people were banned by the government, which was the reason for the closures. Svenska Spel adhered to the official guidelines. Hofbauer clarified that their primary concern was ensuring the safety of local communities, as well as possibly benefiting the venues in the future. The company hopes to reopen as soon as the situation improves.
Sweden's COVID-19 situation is still critical. According to the Foreign Office, the country is experiencing significant virus-related issues. However, testing has been very high since July, which has kept new infections low. Västra Götaland and Gotland regions currently have less than 50 infections per 100,000 people.
The government enforces social distancing measures in public areas. Restaurants and bars are still closed, as are museums, amusement parks, hotels, and campsites. There are also restrictions on the hotel and camping industries.
Preparing a new career for employees
The casino closures have caused considerable hardship. In response, Svenska Spel introduced a retraining program for Cosmopol employees. The program aims to provide furloughed employees with the opportunity to become medical nurses. Unfortunately, only 20 spots are guaranteed.
The nursing training will be provided in partnership with the Skill Shift Initiative (Beredskapslyftet) at two locations – the Grand Hôtel and Sophiahemmet in Stockholm. Svenska Spel has agreed to fund the program to the tune of 18,396 euros. Upon completion, the trainees may find temporary work in the healthcare industry in Stockholm.
Responsibility during tough times
Thérèse Liljeqvist, Head of Casino at Casinos Cosmopol in Stockholm, expressed pride in the retraining initiative. It is an important community contribution, she said, highlighting the need for teamwork in these challenging times. Liljeqvist emphasized that professionalism would make a difference in healthcare and social services.
Shortly after the retraining program announcement, Svenska Spel also introduced a new responsible gambling advisor. This role is intended to help problem gamblers who are spending more time at home due to the pandemic. There have not been any signs of increased risky gambling behavior yet.
Svenska Spel's actions during the health crisis, which comes with massive job losses within the casino industry, have been seen as commendable from a social perspective. In the United States, over a million leisure sector jobs have been lost. Thousands more are at risk in the UK as casinos stay closed.
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Source: www.onlinecasinosdeutschland.com
