France Surprises Self with Arrest

It seems strange for a country that tries to keep a low profile with all that regards online casino gambling to make such a high-profile arrest. France seems to have realized this, even if a little too late. Since the arrest of a chief executive at Unibet the country has tried to distance itself from the move.

A Visible Hand
Laissez faire, in French, means that the economy is to run itself without a guiding hand. This has later been adopted by practically the entire Western world, perhaps better known as an invisible hand policy. Something has apparently gone over France, which now insists on a non-laissez faire policy, at least with all that regards online gambling.

France has been trying to operate state-run online casinos and protect them as monopolies. Française des Jeux and PMU are the only licensed operators in the country. France has been in talks with the European commission on the issue, for such monopolies are in contrast to European free-trade agreements. Officially claiming that offshore gambling operations are poorly regulated, it has kept to its stand against opening their market.

It was believed that France will move toward gradually opening up its betting market. French budget minister, Eric Woerth, will meet with EU officials to discuss the issue on November 6. Hence the surprise that the arrest has brought - among industry analysts and among French officials too!

Out Come the Handcuffs
Swedish citizen Petter Nylander, chief executive of Unibet, has been arrested by Dutch authorities when passing through Amsterdam's Schiphol airport on Monday as he was about to board a flight to London, where he resides. The arrest was made at the request of the French, on charges issued by a French judge of money laundering and Internet crime.

Unibet is one of the two most popular online bookmakers in France. The other top gambling operator, Bwin, has also experienced similar "harassment," to borrow the term used by Unibet in its response to the arrest. Two executives of Bwin have been arrested 13 months ago. The two, as well as 888, PartyGaming, Zeturf and Partouche Group - all active in France at one point, operate from Gibraltar or Malta and do not hold a French license.

Hands Off
Unibet has been an active player in France, more than just a popular betting destination. It has sponsored France's largest poker tournament and a French cycling team, but was not able to present their logo on the shirts worn by the team at the Tour de France after a police raid.

Nylander himself did not show up when asked to for interviews that the French have held earlier this year with various gambling site operators. The French could not assure him he would not be arrested would he show up.

Hands Up
On Tuesday, the French government has already distanced itself from the arrest. It even ordered the case be dropped. It has exposed a sensitive point, at a sensitive time: France is arguing that it does not protect state-run monopolies, and yet its state-run operators filed the complaints that led to the arrest warrant.

Unibet's operations are legal under EU law. Its conflict with French law is contested. In an official response following the arrests, a French budget ministry spokeswoman said: "It is not a matter between the state and Unibet." She then added that "Française des Jeux and PMU will be told to drop their complaint."

Pulling its hand from the unfortunate arrest will prove France is indeed willing to "find a new framework for gambling if conditions are respected," as the French Europe minister, Jean-Pierre Jouyet, said in his latest comments on the issue.