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Sweden Plays for Time to Milk Online Poker & Gambling Cash Cow Longer

by PokerPages.com
Tue, Sep 4th, 2007 @ 12:00am

The Swedish government has rejected claims by the European Commission (EC) that it is violating European Union law by blocking gambling services based other EU countries, and justified its state monopoly, Svenska Spel, by saying that Swedish laws were proportionate, provided social protection and prevented crime. Some media is saying Sweden has done this to extend the time they collect revenue from their monopoly.

EU Internal Market Commissioner Charlie McCreevy has repeatedly said that he intends to use his legal powers to stop unjustified restrictions on the free movement of services within the EU bloc (Article 49 of the EC Treaty).

In June, The EC, an executive arm of the European Union (EU), issued final warnings called 'Reasoned Opinions' to Sweden [and France] after rejecting their explanations for their protectionist gambling monopolies (click here for related article).

So now it looks like the EC's case against Sweden will be headed to the European Court of Justice (ECJ). But it is likely to take several years to bring the case to any legal resolution.

An article by eGaming Review described Sweden's rejection as a ploy to buy the Swedish government more time to continue to reap the revenues of its monopoly.

Quoting unnamed sources in Sweden, it reported, "There is friction within the government because it got to power by promising tax cuts on real estate and wealth."

"By holding onto Svenska Spel's monopoly for at least another two years, it keeps in place huge tax revenues which make up the shortfall from any cut in other taxes," the article continued. "The government knows the European Commission is a slow moving animal so really this is a cynical move to play for time."

Read Related Articles:

  • EC Gives France & Greece More Time to Reply to Official EU Gambling Queries
  • EU Rejects French & Swedish Gambling Monopolies, Says Change or Face Court
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