European Commission Moves Forward to Remove Gambling Restrictions

2007 March 22, Erana Hansen

The European Commission (EC) has taken the next step towards removing gambling restrictions in a number of EU states.

In the spring of 2006, the European Commission initiated infringement proceedings under Article 226 of the Treaty on European Union against seven EU member states following complaints lodged by private gambling companies. Late in 2006, the EC then also sent letters of formal notice to France, Germany and Austria following concern that these countries were also implementing protectionist policies.

After receiving replies to its written request for information from Finland, Hungary and Denmark, the EC has deemed the replies unsatisfactory, and has taken the next step by issuing reasoned options to these states. Under Article 226 of the Treaty on European Union, infringement proceedings are divided into three stages: a letter of formal notice, a reasoned option, and referral to the European Court of Justice (ECJ).

The ECJ recently ruled in favor of the plaintiffs in action taken against Italy after the Italian government charged a sports bookmaker with the criminal offence of operating without a gambling license within Italian borders. The men had a UK gambling license, and the ECJ ruled that their arrest was not compatible with EU laws relating to free movement of services within the EU.

If the EC does not receive a satisfactory reply to their issued reasoned options within two months, it can refer the proceedings to the ECJ.

The European gambling industry welcomed the action taken by the EC. The Online Casino City website quoted BWin executives as saying the EC has vindicated their actions (two BWin execs were arrested in France last year after they sponsored a football club).

"We welcome the judgement by the European Commission, which underpins the ECJ's Placanica verdict of 6 March 2007," commented Norbert Teufelberger, bwin Co-CEO. "The decision to continue infringement proceedings against three members states simultaneously is a clear warning addressed to France, Germany and Austria to remove their current restrictions on cross-border gaming immediately."

"As long as national legislators are unable to agree on uniform pan-European regulations for the gaming market, national regulations will continue to be evaluated in the light of the freedoms of establishment and services anchored in the Treaty on European Union and the prohibition of discrimination. Any restrictions will be seen in the light of the requirements laid out in the Gambelli and Placanica judgements. Against this background, countries like France are called upon to draw up gaming legislation in accordance with EU law. bwin would gladly give its constructive support to such a process, as it has in the past," added bwin Co-CEO Manfred Bodner.