SVENSKA SPEL ONLINE POKER EXPANSION NIXED (Update)

9 November 2007

Request to join Boss Media in providing poker to a WLA monopoly refused


Swedish news publication The Local.se reports that the Swedish government has turned down a proposal from its gambling monopoly Svenska Spel to provide online poker services to an unidentified European member of the World Lottery Association.

Svenska Spel had planned to partner with online poker software provider Boss Media in "exporting" online poker services for the country concerned (see previous InfoPowa reports) despite its claims that its own monopoly was a good vehicle to control the expansion problem gambling.

The Local reports that instead of approving the proposal, it has suggested that Svenska Spel carry out an internal, ongoing investigation into the existing license, which is due for renewal in June 30, 2008. Until that investigation is complete, the government has decided not to allow the further expansion of Svenska Spel's online poker services. The government apparently stressed that the social impact of gambling had precedence over profits.

Third quarter 2007 results at the Swedish monopoly recently showed a 1.4 billion Swedish kronor ($215 million) profit. Overall profits for the first three quarters of this year were in excess of 4 billion SEK - up 19 percent compared to 2006.

The Swedish government is currently under pressure from the European Commission to cease its monopolistic gambling activities and open up the growing and lucrative Swedish market to fair competition from other EU member states.

Online Casino News courtesy of InfoPowa