Moderate Party members voted at their congress last weekend in favour of a proposal to liberalise the country’s gambling market but the Swedish Government still advocates taking a more cautious approach towards regulation.

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.

An official study of Swedish gambling legislation has recommended the introduction of a licensing system that would divide gambling offers on the basis of their risk to players, and proposes that Svenska Spel be allowed to maintain its monopoly over land-based casinos, lotteries and online poker. But with the changes not scheduled to take effect for a further two years, observers question whether the proposals will be enough to placate the European Commission in Brussels.

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.

While Sweden’s right to set its own gambling policy has recently been upheld by the ECJ, its domestic courts must nevertheless assess whether penalties for the promotion of gambling organised abroad are discriminatory.

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.

Svenska Spel, Sweden's state-owned gambling company, has been accused of deliberately placing gaming machines in areas with major social problems and low average incomes.

Fallout from a recent Supreme Court decision could mean the time is now ripe for private betting operators to strike marketing deals in Sweden and position themselves ahead of a possible liberalization of the market after 2010, predicted a leading Swedish lawyer last week. With all prosecutions of gaming advertising now on hold due to the legal doubts raised by the Court, the question is whether any remote operators will test the authorities’ resolve by introducing terrestrial betting outlets in the country.

In Sweden, the marketing activities of the monopoly gaming operator are under police examination but the focus of an inquiry to recommend changes to the country’s gambling laws is blurring as the new government becomes accustomed to the realities of power.

Jesper Kärrbrink, the outgoing chief executive of Svenska Spel, has called on the Swedish Government to allow a regulated gaming market to take shape within the country, allowing licensed online operators to compete with the incumbent gaming monopoly.