Brussels, 22/09/2006 (Agence Europe) - Following the recent arrest in France of two managers of the Austrian online betting company Bwin, debate has re-opened at EU level about the compatibility of national legislation authorising public monopolies in the betting industry with EU rules. The Commission is currently examining several complaints and has explained that it may decide to launch infringement proceedings in October against various Member States, including France, suspected of placing obstacles in the way of competition in this highly sensitive area.
The European Betting Association (EBA) is defending Bwin and is urging the Commission to launch infringement proceedings against France because it claims French legislation is discriminatory and restrictive, and is calling for new EU legislation to cover betting. In a press release, European Lotteries, a European Association of Lotteries and State Lotteries, says it backs the French position. It says the French state's decision to restrict betting to highly regulated companies is in line with European Court of Justice case law. Since the Schindler and Läärä rulings, the Court of Justice has recognised the right of Member States to restrict betting and establish monopolies in the general interest, to protect public order, consumers and prevent organised crime. The Gambelli ruling has not changed this approach, it explains, adding that it is a bad interpretation of the law to argue that the Gambelli ruling opened the market to private operators.
Last April, the Commission sent a warning letter to seven Member States (Germany, Denmark, Sweden, Finland, Hungary, Italy and the Netherlands) arguing that their national legislation on betting on sports competitions is incompatible with EU law (see EUROPE No. 9170). To date, there is no special EU legislation covering gambling and betting, which were excluded from the 2000 directive on electronics and the draft directive on services in the internal market.