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France Taking Heat After High-Profile Gambling Arrest

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24-Oct-2007, 08:27

The French government on Tuesday distanced itself from the high profile arrest of an internet gambling executive and ordered the case against him to be dropped. Petter Nylander, chief executive of Unibet, was detained on Monday at Amsterdam's Schiphol airport on a European arrest warrant issued by a French judge on charges of money laundering and cybercrime.

The arrest was triggered by a commercial complaint by Française des Jeux, which runs the lottery, and PMU, the national horseracing board, who claimed that Unibet had breached their monopoly rights to internet gambling in France. The French government appeared embarrassed by the arrest, which comes as Paris prepares to concede that it has discriminated illegally against online operators to protect its state monopolies.

"It is not a matter between the state and Unibet," said a spokeswoman for the budget ministry in Paris. "Française des Jeux and PMU will be told to drop their complaint."

Mr Nylander's arrest was criticised by Unibet, the European Commission and Swedish politicians, who all argued that Unibet's operations were legal under EU law. Christofer Fjellner, a Swedish member of the European parliament, said: "A worrying fact is that the European arrest warrant, an instrument put in place to combat terrorism and organised crime, is now used by the French government to punish those who fight French protectionism.

"What will be the next sector to be threatened with French arrests? The French are turning the European arrest warrant into a political tool."

A spokeswoman for Unibet said the arrest was a surprise and lawyers were working for his freedom. "They should release him immediately," she said.

Charlie McCreevy, the internal market commissioner who has clashed with France on the gambling issue, denounced the arrest. "They may have arrested an innocent man," his spokesman said. Mr McCreevy began legal action against France over the summer after the organisers of the Tour de France cycle race, sponsored by FdJ, prevented the Unibet team from taking part in the French legs.

Eric Woerth, the French budget minister, is due to discuss the opening up of the French online gambling market with Mr McCreevy on November 6. Jean-Pierre Jouyet, the French Europe minister, told reporters in Strasbourg it was ready to open the market to all who met certain conditions: "We are ready to find a new framework for gambling if conditions are respected. Those wanting a licence would have to satisfy criteria on preventing addiction and money laundering."



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