Shortly after reporting on the Swedish government's
abandonment of plans to develop a state-run online casino in the face of growing
pressure from the European Union, the Lotteriinspektionen (Sweden's Gambling
Board) has placed demands on Redbet Limited to provide information from their
books regarding business activities, assets and and employees. Following similar
demands made on 24hPoker, the Lotteriinspektionen is apparently under the belief
that Redbet is undertaking illegal activities according to Swedish law.
According to these laws, the Swedish Gaming Board
has the power to demand and collect information from online gambling businesses
that are thought to be undertaking illegal business on Swedish soil. Whether or
not the amount of business is deemed ample enough for imposing large fines is
contingent upon the findings of the investigation. Similarly, investigations
regarding tax evasion have also been undertaken.
If Rebet Limited does not meet the demands of
Lotteriinspektionen - meaning they refuse to supply the information being
demanded from them - Swedish law says they have the power to impose fines. Even
the promotion of online casinos and betting sites to Swedish citizens can
warrant probes and steep fines. A harsh law to say the least, critics say that
Sweden is simply trying to protect their monopolistic gambling regime, Svenske
Spel from outside competition.
Following Sweden's latest online gambling probe on
Redbet, the mystery surrounding their recent decision to pull plans for
developing their own online casino is now clear. However, in the eyes of the
European Union, there is no justification for Sweden's probes. Despite claims
they are protecting Swedish citizens from gambling addictions and keeping
organized crime and fraud in check, the EU sees Sweden's actions as a direct
violation of the General Agreement of Trade and Services.