Changes Proposed in Sweden's Gambling Set Up
Svenska Spel is Sweden’s state-owned gambling monopoly. In the past it has behaved as all monopolies do. It has tried to prevent the local media from accepting gambling advertising from other sources and has also tried to prevent overseas Internet companies from offering their gambling products in Sweden.
Now some of this may change. A commission had been appointed to study the gambling scenario in Sweden and recommend changes if required. The commission has submitted its report and has suggested some changes. The main relates to disbanding the monopoly position is some sectors of gambling. The commission has recommended that private companies be allowed to offer sports betting in Sweden by 2011. The commission however has recommended that Svenska Spel should retain the monopoly as far as poker and casino gambling are concerned. The reason for this differentiation is that the commissioners’ findings are that poker and casino gambling are more likely to create problem gamblers. The commission strongly recommended that overseas online gambling sites that wanted to offer sports betting should comply with Swedish regulations and operate professionally if they are to be allowed to function in Sweden.
The second recommendation of complying with Swedish laws should not bother anyone. Studies like the one conducted by eCOGRA for the European Gaming and Betting Association reveal that private companies are far ahead of government owned companies as far as responsible gambling and player protection are concerned. However the first recommendation that only sports betting be allowed as a competitive product has drawn mixed reactions. The European Commission has welcomed the move as one in the right direction. It has been warning Sweden that the latter’s state monopoly on gambling violates the European Union principles of free and fair movement of goods and services between member nations. Though the European Commission would have preferred Sweden to go all the way, they are currently happy that the first step has been taken.
However four major Scandinavian online gambling companies are not amused. These are Expekt, Unibet, Betsson and Ladbrokes. They called a press conference in which they decried the commission’s findings that poker and casino gambling was more susceptible to problem gambling. To support their view they put forward the results of a study commissioned by them and carried out by the independent Swedish Retail Institute. The study compared the scenario under the Swedish gaming monopoly with that under a proposed licensing system. This study claimed that problem gambling issues could be better dealt with under a licensing system. The Swedish Retail Institute study also demonstrated that the continuing with the Svenska Spel monopoly is economic suicide because the present system costs SEK 5 billion annually in efficiency losses. A licensing system would not only prevent these losses but would result in the generation of an additional SEK 4 billion of annual consumer spending that would induce growth in the economy.
Now the ball is in the Government’s court. Whether it should continue with the status quo or implement the decision of one of the two reports is a call it has to take.
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