Sweden Issues Claim Against Online Poker Site

A SEK40 million (€4.3 million) claim has been filed against online poker site Multipoker.com by the Swedish government according to a report found at Gaming Intelligence Group.  Sweden’s tax authority, Skatteverket, alleges the company owes back taxes.

Multipoker.com was one of the first online poker websites in Sweden, gaining a leading position in the market with its sponsorship of Sweden’s ‘Big Brother’ reality TV series. The site, owned and operated by EPR Investments of the British Virgin Islands, was sold to PartyGaming Plc in November 2005 for US$14.5 million. The claim against Multipoker.com relates to its activities prior to the acquisition and does not relate to PartyGaming.

"According to Skatteverket and the Swedish National Economic Crimes Bureau, EPR Investments’ presence in the British Virgin Islands was merely a front and as a result, the founders and main shareholders of EPR Investments were arrested in May of this year and a police investigation launched into allegations of serious tax crimes.

"Knut Edhborg, Tax Auditor at Skatteverket, told Gaming Intelligence Group that according to their investigations, all of the business of EPR Investments was operated from Sweden, with both the management and board or directors being situated there.

"The authorities allege that the revenues generated by Multipoker.com prior to its acquisition by PartyGaming were never declared in Sweden. They also claim that the US$14.5 million paid for the business ended up with the owners of EPR Investments via bank accounts in Switzerland, again without being declared to the Swedish tax authorities."

Sweden’s ruling Moderate party has recently given its backing to the de-monopolisation of the country’s gambling industry and sell-off of Svenska Spel at the party’s annual conference in Gävle on Saturday. Svenska Spel provides the world's 10th largest online poker room.

The Scandinavian nation is one of a number in Europe that is cracking down on Internet poker and other forms of online gambling, though Sweden has said it wishes to eradicate "problem gambling" and an all-out ban does not seem likely at this time.  Sweden is home to some of the major international online gambling firms.

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Christopher Costigan, Gambling911.com Publisher

Originally published November 26, 2007 9:56 am EST