Brussels, 04/02/2008 (Agence Europe) - At the end of January, the European Commission decided to open two new infringement proceedings, one against Germany and the other against Sweden, in the gambling services sector.
Germany. Germany has two months to officially inform the Commission of the treaty signed by the Länder, which, since 1 January 2008, has considerably restricted the provision of online gambling services. The Commission considers that some of the provisions of the treaty are not compatible with freedom of establishment and freedom to provide services: Provisions such as: - the prohibition of games of chance on the internet; - advertising restrictions on TV, on the internet or on jerseys or billboards; - and the prohibition on banks to process and execute payments relating to unauthorised games of chance. The German treaty does not ban betting on horse races on the internet, and the advertising of games of chance by mail, in the press and on radio is still permitted.
The European Gaming and Betting Association (EGBA), which lodged a complaint with the Commission in mid-January (see EUROPE 9580), welcomed the opening of the infringement proceedings. “By commencing these broad proceedings only 30 days after the treaty entered into force, the Commission shows its determination to fight restrictions and in particular prohibitions which are not backed by genuine consumer protection or public order interests, said EGBA Secretary General Sigrid Ligné in a press release. The EGBA is an association of Europe's seven largest online gambling operators, including PartyGaming and Unibet. According to John Whittaker, Managing Director of Stanleybet International, “The persistence of the German authorities in maintaining and reinforcing their monopoly in the provision of sports betting services by openly disregarding the European Commission has left Commissioner McCreevy with no alternative”.
A totally different viewpoint is expressed by the European State Lotteries and Toto Association. “The new German Gambling Treaty strictly follows the guidelines given by Germany's Federal Constitutional Court in its March 2006 ruling. Not even commercial gambling operators contest that this ruling is fully in line with the jurisprudence of the European Court of Justice ((ECJ). I am therefore confident that the ECJ - should the Commission eventually decide to go to court - will confirm the compatibility of the Treaty with European law,” said its president, Winfried Wortmann. In its case law (see EUROPE 9381), the ECJ says that any restrictions which seek to protect general interest objectives, such as the protection of consumers, must be consistent and systematic: a member state cannot restrict its citizens' access to these services if, at the same time, it encourages them to participate in games of chance offered by national operators.
Sweden. The European Commission will also send a letter of formal notice to Sweden requesting information on national legislation restricting the organisation and promotion of online poker tournaments. In Sweden, the state owned Svenska Spel organises online poker games and tournaments, but national legislation prevents operators based in other member states from offering this type of service to Swedish consumers.
“This decision is an important development for EU-licensed operators as it confirms the support of the Commission to guarantee our members' right to fair market access … for … poker services. This decisive action against … the Swedish monopoly sends a clear message to all EU countries maintaining or instigating antiquated protectionist gaming regulations,” said Ligné. (M.B.)