The Slot Machine Association (PAF) of the semi-autonomous Åland Islands of Finland was reported last week to Finland's National Bureau of Investigation for violating the Lotteries Act by continuing to take bets from mainland Finns. The action is the latest of many chapters in a saga that has spanned nearly six years. For those who aren't entirely familiar with the case, here is a review of what amounts to Europe's longest running cross-border Internet gambling dispute.
PAF was charged in 2000 with violating Finland's law on lotteries. CEO Lars Porko and two other executives were accused of violating the Finish lottery laws by offering Internet betting to residents of mainland Finland on the PAF Web site.
The case went to trial in Mariehamn, the capital of the Åland Islands, and the Supreme Court in 2001 ruled that government of Åland had the authority to issue PAF a license to operate Internet gambling for all of Finland and the rest of the world.
The Finish Supreme Court contrarily ruled on Feb. 24, 2005, however, that PAF's Internet gambling offering was is in violation of lottery laws in mainland Finland. The court referenced four key issues: marketing, the site's availability in the Finish language, PAF's involvement with Finnish banks and the use of personal data.
Both PAF and the Ministry of the Interior proclaimed victory. PAF reduced its advertisements toward the Finnish mainland and continued targeting customers all over the world, including bettors throughout Finland.
Last week the Finnish Minister of the Interior reported Ålands PAF to the National Bureau of Investigation (NBI), and the Interior Ministry found that PAF's gambling Web site was in breach of the Lotteries Act by continuing to serve Finnish punters. The ministry also said that doing so was illegal and in breach of the Finnish Supreme Court's verdict. And again, the three PAF executives were found to be infringing the Lotteries Act.
"There can be only three licensed gaming (operators) at a time in mainland Finland; no fourth license exists," Interior Ministry Permanent Secretary Ritva Viljanen explained. (The three licenses to which she was referring to are Veikkaus, Fintoto and RAY.)
PAF Chief Executive Stefan Pettersson nevertheless argues that his group has complied with the Supreme Court's ruling.
"The Supreme Court has not said that accepting games from mainland Finland would be wrong," Pettersson said. "What was wrong was heavy marketing during the years 2000-2001. This PAF stopped in the fall of 2001 and has not done since. The ruling from February concerned the old situation. . . . The Finnish Ministry for Interior points to the financial importance, something that is ruled out by the EU as a reason to have a monopoly.
Pettersson also pointed out that PAF has sued the state over the matter, in part because the district court can ask the EU court for a preliminary ruling. He added that the police have not started any investigations
For the Finnish government, a significant amount of revenue is at stake; Viljanen projects that up to 800 million euros a year could be lost if PAF is allowed to target mainland Finns.
Viljanen added that despite having what it considers a clear, favorable verdict, the government has held multiple meetings with PAF in an effort to come to an agreement. No consensus has been reached.
The PAF executives can at least enjoy the coming holidays at home because the director of administrative unit, Jouni Laiho, is on vacation and nothing will happen before Jan. 2.