SOURCE: Washington Times

The European Union is taking aim at Sweden's state-owned gambling monopoly, arguing that it violates rules promoting competition among its 27-member nations.

Sweden says the monopoly is needed to protect the public from "addiction," illegal rackets and fraud. But EU regulators don't buy the argument.

Instead, regulators ask: Why is the monopoly run like a private company with a $53 million annual budget, which mainly promotes lotteries and horse races?

"I can think of 700 million reasons why they don't want to abolish it," said Christofer Fjellner, a Swedish member of the European Parliament.

"There is a double standard behind the way this monopoly works. It's impossible to say that the monopoly exists in order to prevent addiction and illegal gambling, while at the same time having such aggressive marketing."

This is in contrast with two other prominent Swedish government monopolies, liquor and pharmaceuticals, said Jorgen Hettne, director of Swedish Institute for European Policy Studies (SIEPS).

"The gaming industry is allowed to do almost anything they want whereas the other two monopolies have stricter rules to follow."

Sweden delayed joining the European Union until 1995, citing its policy of neutrality as the European bloc developed during the Cold War.

Page 1, 2