Memorandum from Ministry of Finance, Sweden
(DGB 38)
With reference to press notice of 19 November
2003 the Swedish Ministry of Finance would hereby wish to present
its written evidence to the Joint Committee for the Draft Gambling
Bill on issues concerning remote gambling.
The ministries responsible for gaming regulation
in Norway, Sweden, Denmark, Iceland and Finland have been following
the development of the international gaming market on the Internet
and the proposals for the reformation of British gaming legislation
very closely.
Gaming in the Nordic countries has traditionally
been a restricted activity only permitted pursuant to stringent
legislation. The main purpose of our restrictive legislation is
the need to uphold legitimate interests with regard to public
policy and order as well as to limit damaging social consequences
such as problem gambling and fraud. A second ground, which is
not without relevance, is that betting and lotteries may make
a significant contribution to the financing of benevolent or public
interest activities such as social and charitable undertakings,
sport or culture.
Gambling has up to now been a terrestrial activity
where countries have been able to determine their own legislation,
which may differ from legislation in other countries. Remote gambling
over the Internet introduces gambling as a cross border activity.
We therefore consider it to be of the utmost importance that the
member states of the international community address this area
with an open discussion with the objective to contain and determine
the conditions for the development of this form of gambling with
regard to negative social consequences.
We do acknowledge that Great Britain wishes
to confront the problem of offshore based Internet operations
targeting British citizens, and to contain and regulate these
gaming offers within Great Britain accordingly. We are however
concerned with the negative cross-border consequences such a policy
may entail as no limitations to the extent and content of remote
gambling outside Great Britain has been laid out in the Draft
Gambling Bill. If implemented, such a policy would seriously limit
the liberty of the governments and parliaments in the neighbouring
countries of Great Britain to pursue an independent national gaming
policy. It would also undermine the sovereignty of our and other
countries to set limits to the growth of the market and force
them to accept forms of gambling that are not a part of their
gambling tradition.
We also fear that a liberalised British policy
on remote gambling with the clear objective to export British
gambling services will lead to much stronger competition on the
emerging global Internet gaming market, which at present is not
subject to any international regulation at all. This market is
deemed to be a dark zone for potentially dangerous criminal activities
by a great majority of the member states in the international
community. We have also reason to believe that such a development
will lead to an uncontrolled increase in problem gaming related
to remote gambling over the Internet.
As we understand, these concerns are not unique
for the Nordic countries. The European Court of Justice has also
accepted these concerns as legitimate in several rulings allowing
Member States of the European Union to pursue individual policies
with regard to gaming legislation limiting their obligations as
laid down in the EU treaty.
Internationally, there are clear signs amongst
an overwhelming and growing majority of OECD countries towards
the formulation of a norm of respect committing countries not
to allow gaming operators established in their territory providing
games to citizens of other countries, unless special agreements
exists. We believe that many countries share the view that regulation
of the gaming market is primarily a concern for the state in question.
Taking into account the widely practised policy
of respect for national regulation in the international society,
we ask the British parliament to take into consideration the legitimate
interests of the Nordic and other countries upon its deliberation
and assessment of the Draft Gambling Bill on the issue of remote
gambling. As an interactive media, which is recognised to have
a revolutionary long-term impact on our societies, the Internet
calls for internationally coordinated actions in order to avoid
any disillusionment on the part of the citizens.
The Nordic countries have already been in contact
with and held a meeting with the Department of Culture, Media
and Sport regarding our concern with regard to the proposals on
remote gambling. During these discussions representatives of the
Nordic countries were advised to refer the matter to the Committee.
A copy of our letter of 15 May 2003 is enclosed.
Finally, it should be emphasised that the Nordic
countries are ready at any time to provide the Committee with
any information needed for the further clarification of our view
on the matter of remote gambling. Representatives for the Nordic
countries are more than willing to attend any hearing in London
the Committee may wish to hold on this matter.
December 2003
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