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Sweden’s Ruling Party Votes for Gambling Law Changes

The Swedish gambling market is completely closed for private competition and a State monopoly is in charge of all gambling establishment in the country. However, the ruling party in Sweden decided to put an end to the state’s long reign over the online gambling market and to open the Swedish gambling market for private firms. The country is looking to move forward with gambling, and it can’t do that without breaking the current monopoly, as the ruling Moderate Party’s speaker noted.

Sweden, as well as other European countries, was seriously criticism by the European Commission regarding their gambling monopolies. According to the trade agreements of the European Union, free competition should be permitted between all members. Sweden’s regulation of the gambling market was a direct violation of European Union’s law. The pressure inflicted by the European Commission surely had something do with the decision. The ruling party addressed the issue and a licensing system was proposed for the market. Private firms could offer online gambling and land-based operation once they are granted a gambling license by the state. The end for tyranny will have to wait, though.

A study of the gambling market is currently underway and is expected to last until the end of 2008. The results of the study will be used in order to determine what kind of restrictions companies that offer gambling services will have to follow. Obviously, until proper regulation is decided upon, things will remain the same. However, business and firms can start making plans for their future entrance to the Swedish gambling market. Economic pressure is pushing many administrations into new thinking. Such thinking is highly positive for the gambling industry as new legislation that protects it and regulates it is the end result of this change.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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