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Vol. 8 No. 1, January 2009, Dateline

Scandinavian Monopolies Maintained

By GGB Staff   Tue, Dec 23, 2008

In December, Norway’s lawmakers voted to ban financial transactions to and from online gaming sites. One week later, neighboring Sweden released a commission report that recommended continuation of the government-owned monopoly in all but one area of gaming. Together, the two actions point to continued defiance in the face of E.U. pressure to open the borders to online operators in particular.
The Norwegian law takes a similar approach to that of the Unlawful Internet Gambling Enforcement Act in the U.S. And like UIGEA, the banks and others that will be affected once the law takes effect are wondering just how the government plans to enforce it.
The Remote Gambling Association, based in the U.K., is reported to have submitted a formal complaint against the Norwegian law to the European Surveillance Agency, which oversees the European Free Trade Association.
Clive Hawkswood, chief executive of the RGA, told Poker News Daily, “Not only is the Norwegian action in breach of its E.U. treaty obligations but, in any event, financial transaction blocking is largely ineffective.”
Though not an E.U. member, Norway is still obligated to abide by various treaties relating to free trade. The E.U. for its part has been pushing an agenda that online sports betting operators in particular should be seen as providing a service and therefore are free to offer their products under existing treaties.
The Swedish report recommended that state-owned operator Svenska Spel should continue its monopoly in the area of casino gaming, slot and VLT operation, and online games including poker. The report did leave room for the licensing of sports betting operators—the one area where the E.U. has been active in recent years. Betting on horse racing, which in Sweden is handled by a different monopoly, was also off the table as far as the report was concerned.

By GGB Staff

GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.

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