Sweden Says Heja to Alcohol and Gambling

Sweden might be known as liberal and free-wheeling by and large. Yet its alcohol market, for one is owned by a state-run monopoly. It's online gambling market too.

If we do look at the way the alcohol market has operated in the Scandinavian country, we could draw some interesting conclusions with regard to online gambling.

Nothing's Absolute
Absolute Vodka, the famous vodka brand from 1879, was actually owned by the Swedish government, until March 2008 that is. Half a year ago it was sold to the French firm Pernod Ricard.

The Swedish government also owns and controls Svenska Spel, the gambling monopoly. Will its fate be any different from that of Absolute's. We'll definitely not have to wait 129 years t find out...

Alternative markets
Swedes are well accustomed to purchasing alcohol from side-of-the-road sellers, wholly illegal, thus avoiding the high store prices. Systembolaget - the stores that sell alcohol by law on behalf of the government, are taxed heavily by its owner.

(Just for the record, Svenska Spel reported a profit of over 1/2 billion euro in 2007. Although a not for profit operation, it makes for some hefty income.)

State stronghold of gambling is likely to draw such illegal operators too as an alternative. It is our concern that these alternatives will not be supervised and regulated, thus putting people's money - and the industry's reputation - at risk.

EU involvement
True, Sweden is a model welfare state. It can afford such generous policies thanks to taxed alcohol and betting. This, however, conflicts with EU regulations, namely that there should be free movement of goods and services.

Swedish online gambling company Betsson has recently challenged the state-monopoly, relying on EU principles, when it opened an outlet in Stockholm in May this year.

Registered in Malta, it is a European company and authorized by the EU. His shop has yet to be shut down.