Petter Nylander, CEO for Swedish-listed gaming company Unibet, remains at the center of a pan-European web of legal intrigue after he was arrested at Schiphol airport in Amsterdam on Monday on the back of a French-issued warrant.
The arrest has provoked strong reactions from both the political and gaming spheres. Thompson Financial has reported that European Commission Spokesman Oliver Drewes said, "It could very well be that somebody has been arrested who is innocent."
While the Financial Times reported that the French government appears embarrassed by the arrest, quoting a Parisian budget ministry spokeswoman as saying, "It is not a matter between the state and Unibet. Française des Jeux and PMU will be told to drop their complaint."
Under French law, French lottery provider Francaise des Jeux and its horse-betting counterpart PMU have a monopoly on betting in the country, but this is being challenged by the European Union. The 2007 European Court of Justice's verdict "Placanica" confirmed that criminal proceedings brought against legitimate operators based in other EU member states are in contradiction with the EU Treaty.
Just last week, France's Interior Minister Michele Alliot-Marie said that the country was ready to open the market up to international competition.
Elsewhere, the European Gaming and Betting Association, of which Unibet is a member, has strongly disapproved of the arrest.
"The arrest comes at a time when France's legislation on gaming is being challenged both at EU and national level. These actions by French authorities completely disregard the European Commission's Reasoned Opinion of June 2007, which underlined the disproportionality of threatening and imposing criminal sanctions on CEOs of sports-betting companies licensed in the EU."
Unibet was equally vociferous in support of its CEO. "Unibet is outraged by France's total disregard of European Community law aiming to protect a domestic commercial gambling monopoly, which is being challenged by the European Commission. However disturbing French authorities' methods are, for Unibet, it is business as usual.
The company said it was aware of the possibility of this action by the French authorities, but that its timing was very surprising. "In March 2007, the European Court of Justice ruled in the Placanica case, confirming that betting services are covered by the EU Treaty. The Court also confirmed that criminal proceedings brought against legitimate operators based in other EU member states are in contradiction with the EU Treaty. On 27 June, the EU Commission issued a reasoned opinion against France, in relation with the infringement proceedings concerning France´s restrictions on sports betting. Furthermore, on 10 July, the highest jurisdiction in France (Cour de cassation) has overturned a decision that banned a Maltese company from offering online betting on horse races in France. Finally, the French government has stated its will to open a discussion with the European Commission towards a regulated opening of the French online gaming market."
Nylander appeared in court in Amsterdam this morning and is being detained in a hotel at Schiphol airport awaiting transfer to the French authorities.
