Brussels, 06/11/2008 (Agence Europe) - Independent gaming and sports betting companies have this week renewed their offensive to speed up cases against gambling monopolies in a number of member states.
On Tuesday 4 November, the European Gaming and Betting Association (EGBA) presented a study to demonstrate the effectiveness of the standards observed by its members. In particular, the investigation ordered by the association of online betting operators found that the measures put in place by its members to protect against abuse of gambling and money laundering were effectively at least as good as, if not better than, the measures applied by European national monopolies. The report forms a response to those member states which, in the name of the general interest, retain a monopoly on the gaming market in their countries. European law allows this breach of the free movement of services, but only under certain circumstances - it is a matter of knowing whether, in this particular case, these circumstances are met.
The European Commission says they are not, in several cases: Denmark, Finland, France, Greece, Hungary, the Netherlands and Sweden. These member states have been sent reasoned opinions by the Commission on the grounds that their respective gaming monopolies might be incompatible with Community internal market rules. The member states claim that their monopolies are necessary and justified by the general interest, for example, to combat gambling addiction and money laundering. These arguments are, however, undermined by the growing body of case law: in the Gambelli and Placanica rulings (see EUROPE 8581 of 2003 and 9581 of 2007 respectively), the European Court of Justice found that national laws were too restrictive and could not be justified on general interest grounds. Other similar cases have since come to the same conclusion. It is only before the Court of the European Free Trade Association (EFTA) that one country, Norway, has successfully argued that its state monopoly (in slot machines) should be retained, in order to monitor gambling addiction. EGBA is seeking to respond to criticisms by equalling the standards of the monopolies and even going beyond them. That is the aim of its standards, established in July of this year (see EUROPE 9710) and checked by an independent organisation (eCOGRA).
The Commission's reasoned opinions would appear to have had no effect, however. On Thursday 6 November, gambling operator StanleyBet wrote an open letter to Commission President José Manuel Barroso, expressing its extreme concern that, “despite these final warnings, a number of these countries remain in open defiance of the Commission, and that the Commission has not progressed these reasoned opinions in the Court of Justice”. At the time of going to press, no response had been received from Barroso's office, but some believe that the Commission's reticence is for political reasons, inter alia a difference in the approach of the officials in DG Internal Market and the legal services, which has to approve all action against member states as part of infringement proceedings. The legal service may be erring on the side of caution in its recommendations, it is said at the Commission. It prefers not to refer the matter to the Court without being sure of the validity of the Commission's case. The Commission, however, is not as demanding. In the words of one official, “As long as a procedure clarifies the matter legally, this can only be a good thing, for the Commission too, even if it 'loses' the case”.
Working group at Council. A working group at the Council is examining the online gambling market (see EUROPE 9771) and will submit its progress report to the Competitiveness Council on 1 December, according to a source close to the matter. There are still doubts, however on the determination of the Czech authorities to pursue this French presidency initiative. One diplomat explained that this is not a good time because the respective positions of the member states are still being changed. Certain observers point out the link between the group of countries receiving the Commission's attention in this area, and those which are most enthusiastic about the Council's working group on the same topic. The Swedish authorities which have also been sent a reasoned opinion, have confirmed that they would support this initiative when they have the Council Presidency (which begins on 1 July 2009). (C.D./transl.rt/rh)