The chief executive officer of the Malta-based online gaming company Unibet Group plc was arrested on Monday night at Amsterdam’s Schiphol airport at the request of the French authorities.

The arrest of Unibet CEO Petter Nylander marks the heightening of tensions between the online bookie and the French authorities, who argue that Unibet illegally offers its betting services in a breach of laws drafted in 1836 and 1891 to protect French state-owned betting monopolies – the Française des Jeux lotteries monopoly and horse betting monopoly PMU.

Mr Nylander was apprehended as he was about to board a flight to the UK where he resides, the company said in a statement issued yesterday, adding that the arrest stems from legal proceedings filed last year by France’s horse betting and lotteries monopolies.

France, Sweden and Greece all ban foreign sports betting companies and have been threatened with lawsuits by the European Commission.

Commenting on the development yesterday, Unibet said in a statement, “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.”

A commission spokesperson was yesterday quoted as remarking, “It could very well be that somebody has been arrested who is innocent.”

Ironically, the French government had stated just last week it wanted to liberalise the country’s online gaming market. France has until the end of the month to reply to the Commission’s infringement notice.

Unibet added in its statement that the arrest’s timing was “very surprising” in that just last July the French courts had overruled a previous court decision that had banned another Maltese online gaming company, Zeturf, from offering bets on French horse races.

Earlier this year France’s highest court, the Cour de Cassation, ruled in Zeturf’s favour and found that any limitation of free competition cannot be justified and that restrictions can only be instituted against gaming companies engaged in criminal or fraudulent activities. Zeturf is to return to the Paris appeals court for a retrial, which may take up to a year to be heard.

This the first time Unibet has landed itself in a quandary over challenges to national legislation. The company, which was conceived by a Swedish mathematician, recently saw the cycling team it sponsors – Green Cycle team – being banned from the Tour de France over a French ban on internet gambling advertisements.

The Belgian authorities also recently lodged an official complaint against Unibet for offering a bet on how long the Belgian government would last in power before being replaced. Belgian laws only provide for betting on sporting events and Unibet officials are at risk of a maximum five-year prison sentence and a EUR100,000 fine.