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Svenska Spel Retains Online Poker Monopoly Under Swedish Gaming Reorg

by PokerPages.com
Thu, Dec 18th, 2008 @ 12:00am

The Swedish National Gambling Consultation (Spel Utredningen) published a proposal earlier this week recommending that state-owned Svenska Spel retain its monopoly hold on what they consider the most problematic games: interactive games on the Internet which include online poker and bingo, as well as slot machines and casino activities. But a partial new model was proposed where sports betting licensing (odds games and tips games) could be opened to private operators by 2011, with the exception of betting on horse races.

Because poker and casino activities carry an increased risk for problem gambling, the proposal stressed that the state monopoly should remain the sole operator of them. To prevent foreign operators from engaging with Swedish residents, the report also included proposals to introduce IP and payments blocking provisions.

Under current Swedish law, foreign providers may not legally offer online gambling services to Swedish residents, only Svenska Spel.

IS SWEDEN BREAKING EU LAW?

The European Commission has for some time threatened to take Sweden to the European Court of Justice for denying other EU-registered gaming companies access to Sweden's market, as that right is guaranteed under EU rules.

The Swedish government has rejected claims by the EC that it is violating European Union law, and has justified its state-owned monopoly, Svenska Spel, by saying that Swedish laws were proportionate, provided social protection and prevented crime.

Some media is saying Sweden has continued to make these arguments to extend the time they collect the badly-needed revenues from their monopoly (click here for related article).

On October 8, Sweden sent five questions to the European Court of Justice (ECJ) concerning the rights of government-owned online poker and Internet gambling monopolies to limit foreign competition under EC rules.

Though critics say Sweden did so to head off an ECJ case, all agree that answers to these questions will be binding not only on the courts of Sweden, but also on the national courts of all European Member States. Therefore it will have a significant impact on the gaming market throughout all Europe.

Experts estimate that the ECJ may take 18 to 24 months to issue answers to Sweden's questions.

Read Related Articles:

  • Sweden Asks ECJ Questions Impacting European Gaming Monopoly Policy
  • Sweden Undecided Whether Online Poker to Remain Gov't Monopoly
  • Sweden Plays for Time to Milk Online Poker & Gambling Cash Cow Longer
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