Unibet CEO Arrested

[james01]

Source: gamingintelligencegroup.com


Unibet CEO Arrested by Dutch Authorities Under French Warrant

Petter Nylander, CEO of online gaming company Unibet, was detained yesterday by Dutch authorities after checking in to a flight to get back to his home in the UK.

The background for this detention is the proceedings filed in 2006 by the French lottery monopoly Française des Jeux and horse betting monopoly PMU against Unibet, alleging breach of the French national laws from 1836 and 1891 protecting those State-owned monopolies.

In a statement issued this morning, Unibet said it was outraged by France's total disregard of European Community law aiming to protect a domestic commercial gambling monopoly, which is being challenged by the European Commission. However disturbing the French authorities' methods are, for Unibet it is business as usual.

While the company was aware of the possibility of this action by the French authorities, the timing of it is very surprising. In March 2007, the European Court of Justice ruled in the Placanica case, confirming that betting services are covered by the EU Treaty. The Court also confirmed that criminal proceedings brought against legitimate operators based in other EU member states are in contradiction with the EU Treaty.

On 27 June, the EU Commission issued a reasoned opinion against France in relation with the infringement proceedings concerning France's restrictions on sports betting. Furthermore, on 10 July, the highest jurisdiction in France overturned a decision that banned a Maltese company from offering online betting on horse races in France. Finally, the French government has stated its will to open a discussion with the European Commission towards a regulated opening of the French online gaming market.

Unibet's CFO and Deputy CEO Ragnar Hellenius has been appointed by the Board of Unibet as acting CEO until Mr. Nylander is released.

Mr. Hellenius said of the arrest, "This situation is clearly unacceptable and extraordinary in ours and in any industry. It is our view that this use of the possibility for cross-border legal actions is a clear abuse of their true aim, and in all aspects, disproportionate. Unibet is licensed in the UK, Malta and Italy for gambling, listed on the OMX Nordic Stock Exchange and a company complying with European law.

This is clearly a breach of the EU Treaty and the fundamental principles of the European Union. We are upset of this unlawful act and harassment against our company and a citizen of Europe and we will take every action possible to bring this matter to justice. This criminalisation of a specific individual is a tactic that we have seen French authorities using before and something we will not tolerate. We take for granted that Petter Nylander will be released immediately."

[Casinomeister]

This makes the French look like a bunch of cry babies.

[ternur]

This is pretty sick, the French government has clearly lost the plot.

[satchmo]

Dont be afraid boys, the frenchies have never won a war yet, so just wait :-)
They tend to be there in the start only, but often they pull out, or call for help, when help arrives they leave...

What Monty Python Holy Grail Quest Character are You?
French Military Victories

Satchmo the man the myth the working class historian....



Ohh btw when i did the quis i became the black knight..

[maaster]

well it def. stirs up the online casino/poker debate we have in the netherlands, lets hope for the best.

Unibet was already forced to stop its activities by law (thanks to the Lotto organization which has a monopoly on gambling here in the netherlands) By 1 october 2007 they have to pay 300k Euros a day (to a max of 3 million Eur) for every day they continue their operations for the dutch..

I wish The Lotto much luck by getting that money hehe NOT

little offtopic:
Also check the link that Holland Casino is choosing Cryptologic software for their online experiment:

http://nocache-phx.corporate-ir.net/...1145&highlight

[jetset]

NYLANDER ARREST COULD BE WRONGFUL, SAYS E.C. (Update)

French gaming monopoly law is not in line with EU legislation.

The European Commission, which oversees compliance with the European Union trade and services treaty, stepped into the row over the arrest of Unibet CEO Petter Nylander today (Tuesday) commenting that the detained online gambling executive may be innocent of wrongdoing.

Commission spokesman Oliver Drewes told reporters: "It could very well be that somebody has been arrested who is innocent."

Nylander, an outspoken critic of EU state monopolies in gambling, was detained yesterday at Schipol airport by Dutch authorities under a European arrest warrant issued by French authorities for alleged offences in 2006 (see previous InfoPowa reports).

But Drewes said French gaming monopoly law is not in line with EU legislation. "There was an earlier French arrest based on the French legislation in place and that was therefore invoked by the Dutch border police," he said.

France has until the end of October to conform with EU gaming monopoly legislation, he said, adding that he is "...quite confident that we can work this out" without taking legal action.

The Nylander arrest relates to proceedings filed in 2006 by the French state-owned gambling monopoly companies, Francaise des Jeux and PMU against Unibet, alleging breach of French laws dating from 1836 and 1891 and protecting state-owned monopolies.

[Mousey]

Paris backtracks on gambling arrest
By Andrew Bounds in Strasbourg, David Ibison in Stockholm and Ben Hall in Paris

Published: October 23 2007 22:01 | Last updated: October 23 2007 22:01

The French government on Tuesday distanced itself from the high profile arrest of an internet gambling executive and ordered the case against him to be dropped.

Petter Nylander, chief executive of Unibet, was detained on Monday at Amsterdam’s Schiphol airport on a European arrest warrant issued by a French judge on charges of money laundering and cybercrime.

The arrest was triggered by a commercial complaint by Française des Jeux, which runs the lottery, and PMU, the national horseracing board, who claimed that Unibet had breached their monopoly rights to internet gambling in France.

The French government appeared embarrassed by the arrest, which comes as Paris prepares to concede that it has discriminated illegally against online operators to protect its state monopolies.

“It is not a matter between the state and Unibet,” said a spokeswoman for the budget ministry...

[jetset]

FRANCE BACKS OFF ON NYLANDER ARREST (Update)

Embarrassing pull back after international outcry

The French government, in the midst of working toward a reasonable rapprochement with the European Commission over its monopolistic policy on online gambling, has been placed in the embarrassing position of having to distance itself from the arrest Monday of Unibet CEO Petter Nylander (see previous InfoPowa reports)

The arrest, by Dutch officials on a European warrant issued by a French judge exploiting 19th century protectionist laws, sparked an international outcry and a warning from the European Commission.

The Financial Times reported late Tuesday that the French government had ordered the case against Nylander to be dropped - but it was not before a series of connected events unfolded.

Nylander was due to appear before a judge in a closed hearing as the Amsterdam prosecutor’s office sought to extend his detention, although a European Commission source said: “Instructions were given to drop the proceedings,” after a spokesman diplomatically criticised the arrest by implying that Nylander was innocent of wrongdoing.

Official spokesman Oliver Drewes had earlier reiterated the Commission’s contention that French gambling laws were out of line with EU rules. “In our view, somebody might have been arrested who is innocent under [EU] law,” he said.

But at that point France’s European Affairs Minister, Jean-Pierre Jouyet, insisted the move was “perfectly consistent with the internal market” as "no internal market for gambling existed."

The basis of the arrest was the proceedings issued last year against Unibet by Française des Jeux, the French lottery monopoly, and PMU, the monopoly that governs betting on horses. These organisations claimed that Unibet was in breach of national laws passed in 1836 and 1891 protecting state-owned monopolies.

Later, the French government appeared embarrassed by the arrest, which comes as Paris seeks a compromise deal that will position it in compliance with EU principles.

"It is not a matter between the state and Unibet," said a spokeswoman for the French budget ministry. “Française des Jeux and PMU will be told to drop their complaint.”

The FT reports that Nylander’s arrest was criticised by Unibet, the European Commission and Swedish politicians, who all argued that Unibet’s operations were legal under EU law.

Christofer Fjellner, a Swedish member of the European parliament, said: “A worrying fact is that the European arrest warrant, an instrument put in place to combat terrorism and organised crime, is now used by the French government to punish those who fight French protectionism.

“What will be the next sector to be threatened with French arrests? The French are turning the European arrest warrant into a political tool.”

A spokeswoman for Unibet said the arrest was a surprise and lawyers were working for Nylander's freedom. “They should release him immediately,” she said.

Charlie McCreevy, the internal market commissioner for the EC who has repeatedly clashed with France on the gambling issue, denounced the arrest. “They may have arrested an innocent man,” his spokesman said.

McCreevy began legal action against France over the summer after the organisers of the Tour de France cycle race, sponsored by FdJ, prevented the Unibet team from taking part in the French legs. Eric Woerth, the French budget minister, is due to discuss the opening up of the French online gambling market with Mr McCreevy on November 6.

Jean-Pierre Jouyet, the French Europe minister, told reporters in Strasbourg it was ready to open the market to all who met certain conditions: “We are ready to find a new framework for gambling if conditions are respected. Those wanting a licence would have to satisfy criteria on preventing addiction and money laundering.”

Unibet has been a vociferous opponent of European state monopolies, which it claims usurp European Union principles of free trade and services. The Stockholm-listed company became one of the highest-profile internet betting firms in France after its cycling team, which sports the firm’s logo on its shirts, was banned from this year’s Tour de France. Unibet has been threatening to sue the organisers over the ban.

In a statement shortly after Nylander's arrest, Unibet said it was “outraged by France’s total disregard” of EU law, pointing out that in July France’s highest court had itself overturned a decision banning a Maltese operator from offering online betting on French racing. Its deputy chief executive, Ragnar Hellenius, said: “We are upset at this unlawful act and harrassment against our company.”

Earlier this year, John Anderson, then chief executive of online gambling firm 888 Holdings, voluntarily attended an interview with the French authorities, while Patrick Partouche, head of the French casino operator Groupe Partouche, was fined and handed a suspended sentence for lending his name to an offshore poker website.

Austrian executives from the Vienna-listed online gambling group Bwin were detained last year by French authorities for advertising its product via a football sponsorship.

[jetset]

UNIBET BOSS STILL IN CUSTODY (Update)

Awaiting transfer to France and hopefully a withdrawal of charges

Hopes that Petter Nylander, the CEO of Unibet detained at Schipol airport on a European warrant signed by a French judge (see previous InfoPowa reports) would be released following an international outcry faded today as arrangements went ahead for his transfer to France.

Earlier, statements by French spokesmen that the charges laid against him by French gambling monopolies for contravening 19th century laws should be withdrawn gave hope that the executive would be released immediately, but this has not transpired.

Instead, Nylander has been released from the airport holding facility to an Amsterdam hotel, where he has been able to consult with lawyers and speak with management at his company.

Ragnar Hellenius, chief financial officer and deputy CEO said: “I am very pleased to confirm that I have spoken to Petter over the phone. He is now together with our lawyers at a hotel in Amsterdam. Under the circumstances, we had of course wanted this process to be faster and that Petter had been transferred to Paris immediately. We take for granted that when Petter finally is on French soil, the judge will release him very soon without charge. Petter is obviously very tired and the detention has not been pleasant. He is still in the good mood and wants to be released in order for him to join his family.”

Nylander lives in the UK, and was detained as he boarded a flight home from Amsterdam on Monday.

Ewout Keelers, legal counsel at Unibet, said Nylander's arrest was a political act. "To use an arrest warrant to protect a gambling monopoly is way beyond that which could be viewed as acceptable," he said.

Nylander’s lawyer Dominique Santacru said the arrest had its real roots in a request the French government made to speak to him about the company’s activities in the French market earlier this year.

In response, Nylander had suggested that such a hearing should be held in the UK as he did not want to be placed under arrest, a fate that had befallen former Unibet deputy chief executive Didier Dewyn in April of this year. The European arrest warrant was then issued by a judge in the Paris suburb of Nanterre as a result of Nylander’s 'refusal' to attend the hearing.

[jetset]

NYLANDER TO HEAD FOR FRANCE MONDAY (Update)

"We just want this circus to end as soon as possible," says online gambling CEO's lawyer

After a brief appearance in the Amsterdam District Court Wednesday afternoon, during which his legal team told an extradition hearing they would not fight his transfer to France on a warrant of arrest issued in June this year at the behest of French gambling monopolies, Unibet CEO Petter Nylander was released to the more comfortable surroundings of a local hotel after agreeing to remain in the Netherlands.

Nylander had earlier in the week been detained at Schipol airport on a warrant based on 19th century French protectionist laws, creating an international furore that included criticism from the European Commission.

It is understood that Petter will travel to France on Monday to face the judge who issued the warrant, which has caused some red faces in a French government currently trying to negotiate a rapprochement on Internet gambling with EU officials. The Budget Ministry said that it regretted the timing of Nylander’s arrest and hoped that the FDJ and the PMU would drop the complaints that started the case against his firm.

Speaking outside the court, Nylander's Belgian lawyer Ewout Keuleers told Associated Press: "We just want this circus to end as soon as possible." He added: "It is disproportionate to try to enforce a criminal case against Mr. Nylander."

Reporting on the case, The Times Online claimed that thousands of French residents are defying the law to place bets online with companies outside France. The French casino industry also wants an end to the bar on its entry to online gaming, and the French government has taken a more conciliatory approach recently with European Commission officials, who want to see a more liberal attitude toward other EU member states involved in Internet gambling..

It described Nylander’s arrest as the boldest action in a rearguard campaign to save two monopolies created in the 19th century, the Française des Jeux (FDJ), which runs lotteries, and the PMU horse-racing board.The two organisations account for half the annual Euro 20 billion turnover from betting in France, with state-licensed casinos taking the rest. These pay 60 percent of their earnings to the French treasury.

Unibet is registered in Malta, operated from Britain and listed on the Stockholm stock exchange. It claims to have 1.8 million customers in 150 countries. Company spokesmen said that it was outraged by France’s disregard for EU law. And Nylander, who lives in London, told reporters that he would not stop offering his company’s services in France.

“We are doing nothing illegal because we have a licence for Britain,” he told Dutch newspapers. “According to the European rules, if you have a licence for one member state, you are authorised to use it in the others.”

Dominique Santacru, Nylander’s French lawyer, said that the arrest was indefensible. “Mr Nylander is the head of a registered business . . . and he is arrested like a common thief,” he said.