SOURCE: business.timesonline.co.uk

The European Commission today renewed its attack on France’s antiquated gambling laws after the arrest of a Swedish internet betting executive for alleged breaches.

Petter Nylander, chief executive of Unibet, which is listed on Stockholm’s OMX stock exchange, was detained on Monday evening by the Dutch authorities under a warrant issued under French laws dating back to the 19th century.

The company confirmed that Mr Nylander was detained by police at Amsterdam’s Schipol airport after checking in for a flight back to his home in Britain, where the company’s operations are based.

Mr Nylander will appear before a judge in a closed hearing tomorrow as the Amsterdam prosecutor’s office seeks to extend his detention, although a Commission source said: “Instructions were given to drop the proceedings.”

An official spokesman had earlier reiterated the Commission’s contention that French gambling laws were out of line with EU rules. “In our view, somebody might have been arrested who is innocent under [EU] law.”

But France’s European Affairs Minister, Jean-Pierre Jouyet, insisted the move was “perfectly consistent with the internal market” as no internal market for gambling existed.

The basis of the arrest was the proceedings issued last year against Unibet by Française des Jeux, the French lottery monopoly, and PMU, the monopoly that governs betting on horses.

The organisations claimed that Unibet was in breach of national laws passed in 1836 and 1891 protecing state-owned monopolies.

Unibet has become one of the highest-profile internet betting firms in France after its cycling team, which sports the firm’s logo on its shirts, was banned from this year’s Tour de France. Unibet has been threatening to sue the organisers over the ban.

Last year, the joint chief executives of Bwin, the Austrian internet gambling operator, were arrested in Monaco as they announced a football sponsorship deal. They were later released on bail.

Earlier this year, John Anderson, the former chief executive of 888 Holdings, voluntarily attended an interview with the French authorities, while Patrick Partouche, head of the French casino operator Groupe Partouche, was fined and handed a suspended sentence for lending his name to an offshore poker website.

Unibet said it was “outraged by France’s total disregard” of EU law, pointing out that in July France’s highest court had itself overturned a decision banning a Maltese operator from offering online betting on French racing. Its deputy chief executive, Ragnar Hellenius, said: “We are upset at this unlawful act and harrassment against our company.”

He said the timing was “very surprising” given that France, after being threatened with legal action by the Commission, had said it would be open to discussing the possible regulation of the French internet gambling market.