Ministerial rhetoric on reshaping gambling monopoly Svenska Spel into a more socially responsible operator has evidently not been communicated to Brussels, as time runs out for Sweden to answer EU concerns. The appointment of a new chairman for the operator, widely regarded as unsuitable for the role, has also raised questions about government indecision.

PokerStars is believed to have gained a significant foothold in Sweden's online poker market while state-owned monopoly Svenska Spel joined Nordic rivals in reporting a sharp drop-off in poker revenues during 2009.

Proposals to introduce IP and payments blocking provisions alongside a licensing system for online and land-based sports betting have received a cautious response from Sweden’s finance minister, according to reports. The reaction comes as private gaming companies begin to lobby against the proposals recommended by an official study earlier this week.

Sweden’s Svenska Spel has threatened to launch a civil action against UK bookmaker Ladbrokes over an advertising campaign the state-owned operator alleges to be in violation of the Svenska Spel trademark. Public prosecutions for gambling advertising may currently be on hold amidst ongoing legal uncertainty in Swedish courts, but Svenska Spel’s threat suggests that private operators may face continued difficulty as they look to exploit their new-found freedom.

The Swedish Government has authorised a revision of the current legislation on gambling with a view to opening up its sports betting market to private companies and appeasing EU concerns but many popular gambling products will remain in the hands of monopolist Svenska Spel.

Sweden is currently considering reforms to its gambling legislation, including more stringent advertising restrictions and blocking measures. Sweden's gambling regulation will again come under scrutiny in January when two high profile advertising prosecution referral cases will be heard in the ECJ.

The Swedish Supreme Court has granted the editors of two popular tabloid newspapers the right to appeal criminal prosecutions for accepting advertisements from foreign gambling companies. Wednesday’s decision obliges the Court of Appeal to assess the compatibility of Swedish gambling legislation with EC law in light of recent European Commission action and last year’s Placanica verdict.

Svenska Spel’s Jesper Kärrbrink announced yesterday that he is to step down from his role as CEO of the company. The announcement comes less than three weeks after the appointment of a new chair to the Svenska Spel board, and furthers speculation that the state-owned gaming operator is likely to witness a restriction in its room to manoeuvre in the Swedish market over the coming months.

The European Commission announced yesterday that it plans to launch an investigation into the online poker operations of Sweden’s gambling monopoly Svenska Spel. While Germany also received a widely anticipated notice of infringement over its controversial Interstate Treaty, it may be the Swedish inquiry that has the potential to bring about more rapid change.

With Sweden’s monopolistic gambling laws under pressure from juridical bodies at both a national and European level, speculation is mounting that the Government could be preparing less restrictive gaming legislation that will licence international operators.