EC Reacts Slowly
The European Commission (EC) has a tough job, and unfortunately for the online
casino industry, the EC is a slow moving beast. Countries that are ignoring the
free trade policies in regards to internet gambling are causing a long-term
problem. The short term fix has now passed and Sweden has refused the EC’s
requests to lift restrictions on internet gambling in the country. Now, if the
EC denies the country’s justification for the online casino restrictions the
case could be brought to court – a process that would take two or more years
before reaching resolution. The Court of Justice is used to uphold the policies
of countries within the European Union, and only when the EC cannot affect the
necessary changes without legal action.
The Swedish government claims that the online casino gambling restrictions are
for the protection of the players and to prevent criminal activity, but others
allege that politics and money are the real reasons behind the continued
government monopoly over internet gambling. Concerning the politics, an
unidentified source commented to a gambling review site about the online casinos
monopoly situation : “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 government
knows the European Commission is a slow moving animal so really this is a
cynical move to play for time.”
And as for the high revenue return in the online casino industry, the Chief
Executive at Unibet, Petter Nylander, speculation on another reason for the
government’s refusal to allow outside gambling companies access to Swedish
players. Nylander notes, “It looks like the market will be opened up by the
European Commission rather than the government and it doesn’t make any political
logic. However, from a financial point of view, the [country’s] gambling
monopoly is one of the biggest cash cows for the government and it doesn’t want
to change the current set up.”
The final decision about Sweden’s monopoly could take years to make its way
through the court, but one fact is sure, it will all come down to the court’s
interpretation of Article 49 of the European Treaty.
|