The Swedish gambling monopoly, Svenske Spel, has apparently put an end to its plans to open an online casino for the time being. What is interpreted as a time-buying tactic, or perhaps a move on the Swedish government's part to show the European Union the motivation for their state-run gambling monopoly is to mitigate addictions and underage gambling, Svenske Spel has withdrawn its application for an online casino license and ceased developing online betting products.

It the midst of an escalating battle with the European Commission regarding Sweden's exclusionary policies against online betting companies operating out of other European Union member States, Svenske Spel continues monopolizing the very lucrative online betting market in Sweden, including poker, lotto, bingo and sports betting. Svenske Spel's subsidiary, Cosmopol operates four distinct international land-based casinos as well, which have been operating as early as June 2001.

Just last month, Sweden rejected the European Union's warning to enter in compliance with EU policies of free movement of trade and services, defending its position on the grounds that having a government gambling monopoly ensures keeping gambling addictions under control. Arguments against this defense cite that the growth in technology is too fast to try and possibly keep things in control, and could very well have an adverse effect.

The fact of the matter is that Sweden is not in compliance according to EU policy and that their defense of Svenske Spel's role has not been received on adequate terms from EC Internal Market Commissioner, Charlie McCreevy. This means that Sweden could very well find itself in the European Court of Justice. Although this could take years to settle, thus giving Sweden time to continue enjoying its monopolization of the online betting sector, the recent withdrawal could also be a sign of a willingness to comply.