Breaking of state-monopoly in Sweden recommended

A public commission in Sweden has suggested that the monopoly should be broken up, at least partially.

A local media report, highlighting that Sweden’s state-monopoly on providing betting has been criticised by the European Commission for violating the EU competition regulations, has shared that the commission proposes that companies other than Svenska Spel shall get the right to offer sport betting in Sweden.

They also say that foreign betting sites on the Internet which do not fulfill the criteria to operate in Sweden shall be blocked.

According to stockholmnews.com, the commission wants the monopoly to remain on Internet poker and casino since these are considered particularly dangerous for people with gambling problems.

“Svenska Spel brings in large amounts of money to the Swedish state every year. A big part of its profit also goes to the sports movement. But the most common defense for the monopoly is that Svenska Spel is suppose to take more responsibility for people with gambling problems than the private companies. Critics say however that this is just an excuse and that the real purpose is to get more money for the state,” reported the publication.

Meanwhile, another report has indicated that an official study of Swedish gambling legislation has recommended the introduction of a licencing system that would divide gambling offers on the basis of their risk to players, and proposes that Svenska Spel be allowed to maintain its monopoly over land-based casinos, lotteries and online poker. But with the changes not scheduled to take effect for a further two years, observers question whether the proposals will be enough to placate the European Commission in Brussels.

RGA urges authorities to address unfair restrictions

The Remote Gambling Association has welcomed the French Council Presidency initiative to review gambling laws and calls on the European Commission to continue infringement proceedings against Member States.

According to the RGA, these efforts should not, however, slow down infringement proceedings against Member States that are failing to apply EC Treaty rules in this area.

Referring to issues such as crime prevention, consumer protection and the maintenance of public and social order mentioned in the Presidency report , the RGA said it agrees that these are all worthwhile objectives, but believes it is important to remember that the online gambling industry already addresses these issues through codes of practice established by the industry itself and through compulsory licence conditions in the European jurisdictions where they are based and regulated.

Clive Hawkswood, chief executive of RGA, said: “All RGA members already operate to our own code of practice on social responsibility. Codes such as these, combined with existing regulations in EEA jurisdictions that issue online gambling licences already set high standards for consumer protection.”

Going forward, the RGA called on the Council to give greater attention to another issue addressed in the Presidency report: the rulings by the European Court of Justice on the opening of national markets to competition from operators who are licenced in other EU jurisdictions.

“The freedom of establishment and the freedom to provide gambling services across internal EU borders are set down in the EC Treaty. Several Member States, however, have yet to amend their gambling laws to take account of this and Commission infringement proceedings against those States are still outstanding. The RGA urges the Council and the Commission to address these unfair restrictions as a matter of priority because not only do they constitute a clear breach of EC law, but they are also unfairly restricting the growth of many well established and responsible online European companies and reducing consumer choice,” stated the RGA.

“You cannot address standards and Member State involvement without mentioning the basic principles of access to markets for online gambling operators licensed in Europe. We hope that any future iteration of this report will make this abundantly clear and serve as a starting point for further consideration of these issues,” said Hawkswood.

Penalty for gaming operators in case they lure problem gamblers

The state government in Queensland, Australia has decided to increase the penalty for gaming operators who lure known problem gamblers back to their venues with advertising and promotion.

Recently, the state had put an end to new poker machines in Queensland. Premier Anna Bligh and Treasurer Andrew Fraser announced a permanent cap on the number of additional machines for clubs. The move will cost the Government $20 million a year in lost revenue.

As per the information available, in the latest move, laws would be introduced early next year to increase the fine to up to $4,000.

“This step introduces real penalties aimed at reducing a problem gambler’s exposure to material which could potentially worsen their situation,” said Bligh, who also emphasised on keeping children out of gambling venues to reduce the risk of breeding future problem gamblers.

According to Queensland Treasurer Andrew Fraser, the government had moved to place a cap on the number of pokies in pubs and clubs. Office of Liquor, Gaming and Racing statistics show in the month of October, Pine Rivers’ 859 gaming machines took in $4,044,084.31 at $4707.90 per machine. The rate was higher than Caboolture ($4145.53), Redcliffe ($4601.26) and Brisbane ($4213.46) for the same month.

The number of poker machines in Queensland pubs and clubs increased by 2560 between November 2005 and October 2008.

Cooperation among national gaming regulators appears to be a necessary first step

A draft EU document has indicated that there are grounds for a common approach to regulating the European Union’s multi-billion-euro gambling sector.

According to Reuters, the draft authored found there were “already grounds for seeking a common approach”.

“While the legal frameworks differ, there are significant similarities in the member states’ objectives as regards gambling and betting,” said the document, obtained by Reuters. “The common challenges identified would appear to justify the development of a new EU-level approach.”

Cooperation among national gaming regulators appears to be a necessary first step to combating money laundering, fraud and corruption, the draft document said. “Topics for discussion could include methods for real-time checking of players and transactions or mandatory reporting of transactions and verification methods,” it added.

A ceiling on player rates of return could be part of an EU approach and finance ministers could look at ending double-taxation by taxing gaming where it takes place, the document said.

A player wins Swedish online poker tax ruling

A ruling has gone in Swedish poker player’s favour, freeing him from paying taxes on a portion of his online poker winnings. The verdict came against the Swedish tax agency Skatteverket.

The county administrative court (Länsrätten) in Östergoötland ruled that Sargon Rüya did not have to pay Swedish taxes on the 650,000 kronor ($80,900) he won playing online poker on a site based in the Isle of Man, reports the Östgöta Correspondenten newspaper. It was reported that Rüya was still liable for paying taxes on winnings earned while playing on a site based in Monaco. The difference in tax treatment stems from European Union rules stipulating that winnings from games such as poker are free from taxes within the EU.

According to the newspaper, the Swedish tax authority Skatteverket had originally demanded that Sargon Rüya pay tax on his winnings because the Isle of Man is not part of the EU but Rüya was able to prove the company was operated by a Cypriot parent and the earnings were therefore from within the EU.

For its part, the Court went a step further and said that Skatteverket could not place the burden of proof of where foreign companies operations are based on an individual in order to collect tax.