SWEDISH ONLINE POKER MONOPOLY COULD STAY
25 May 2007
Gambling firms await decision on Svenske Spel
poker
The giant Swedish government gambling monopoly Svenske
Spel, which has proved a formidable opponent in the
Scandinavian online poker sector, could continue to pose
a threat despite the possibility of European Union
action to liberate the flow of goods and services in the
member nation.
Scandinavian reports indicate that the Swedish finance
minister, Anders Borg, may take his lead from UK
Chancellor Gordon Brown in using high tax rates and
stringent regulations to discourage competing companies
from entering the Swedish market, thus officially
curtailing the monopoly but discouraging replacements.
One of the election promises of the Swedish alliance of
middle and right-wing political parties last year was to
abolish the state gambling monopoly.
Veckans Affärer, a Swedish business publication reported
this week that it has received information indicating
that Svenska Spel will be allowed to maintain its
monopoly, primarily due to the significant revenues that
it generates for the state. In the first quarter of
2007, Svenska Spel recorded a net profit of Euros 157
million from revenues of Euro 260 million.
The report goes on to suggest that the Swedish finance
ministry is currently working on a licensing and
taxation regime so tough as to deter all but the most
determined foreign competitor.
In order to placate the EU, Svenske Spel may be
compelled by government to cut marketing activity
significantly and restrict new games development, at the
same time improving on compliance technology.
The timing is right for a statement by the minister -
this week marks the end of a two month EU deadline for
countries like Denmark, Finland and Hungary to modify
their gambling legislation or face possible litigation
in the European Court of Justice.
Online Casino News courtesy off
InfoPowa
More news here.
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