The Growth of Digital Channels and Its Impact on Commercial Real Estate Usage

If casinos were previously associated by many with a street corner gambling hall, where the focus was on slot machines and extended opening hours, the picture is different today. The gambling market has changed, and with it, the space requirements of casinos. This is important for real estate owners, because the entertainment business is not disappearing, but changing form, and this directly affects which commercial spaces remain in demand and which fall behind the times. Increasingly, location, accessibility, neighborhood, and concept fit matter, not just cheap space and high foot traffic.

Rental space flexibility determines risk

From a real estate owner's perspective, risk increases when rental space usage becomes too uniform. The more specific a space is for one activity, the smaller the pool of potential next tenants, and the greater the conversion costs may be. Shifts in channels in the gambling sector are also visible in the numbers. According to the Tax and Customs Board, in 2024, online casinos generated 22 million euros in gambling tax, while land-based casinos generated 12.8 million euros. This difference says nothing about the turnover of any specific location, but shows that the online channel's share in the market is substantial. For a real estate owner, this is important context when assessing how stable the demand for physical space is.

Web channels change expectations for physical location

On the web, trying a new service is a matter of a few clicks, but opening a commercial space means time, investment, and fixed costs. Therefore, on web platforms, new casinos become visible in the market and can be tested significantly faster than any on-site concept.

In real estate terms, this means that a physical location should offer a clear reason to visit. Quality, privacy, and service are increasingly important, as well as a well-thought-out interior, secure access, separate zones, catering options, and suitable space for organizing events. If the commercial space has everything, it is easier for the tenant to maintain visitor numbers and justify higher rent even in a situation where the alternative is always available on a phone screen.

The Swedish example: when physical casinos become impractical

Looking at the broader picture, Swedish developments are a telling example of how the physical casino model can even contract at the country level. The Casino Cosmopol network, owned by Svenska Spel, shrank for years until the Swedish parliament decided in April 2025 to end land-based casino operations, citing reasons including declining profitability and visitor numbers.

The result was that the last Casino Cosmopol in Stockholm closed at the end of April 2025.

This topic has been widely covered in Sweden by both mainstream media and portals that follow the gambling industry. For example, one of them is Bettingbladet, which describes itself as a news site that monitors casino and betting sector trends and market changes.

For real estate, there are two lessons from the Swedish story. First, when consumption moves online, the revenue potential of physical space becomes more unstable. Second, if the political direction or regulation changes, even large and well-known concepts can disappear from the market, so the owner's risk management and space reusability must be carefully thought through with a safety margin.

What should a real estate owner conclude from this?

If a tenant operates in the entertainment, gambling, or club concept field, it's worth managing risk already when signing the contract. The biggest risk is not one specific tenant, but how quickly you can adapt the space for the next user.

• Choose flexible planning. The more universal a space, the larger the pool of potential tenants. A very specific solution usually means a greater risk of vacancy and conversion costs.

• Think out a plan B before signing the contract. Write down 2-3 realistic alternatives for yourself: would the same space work for services, a small office, a studio, beauty services, or retail without major renovation?

• Agree on renovations and restoration. If a tenant makes special solutions, set down in the contract who is responsible for removing them, what the handover condition should be, and what documentation must be provided.

• Look at the location through the concept lens. For a higher-end experience, neighborhood, accessibility, parking, and safety matter. A model built on casual visits depends more on foot traffic. In-between spaces are the most vulnerable because they don't support either logic well.

In summary, commercial spaces that are flexible and have a clear alternative use plan win, because in an era of entertainment migration, stability is no longer guaranteed by one tenant, but by the space's adaptability.