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More good news from the EU from http://www.cbw.cz/phprs/2007040208.html
By: Judit Zegnál, 02. 04. 2007
In response to repeated complaints by online betting companies, the European Commission (EC) took action to put an end to the obstacles to sports betting services in Hungary, Denmark and Finland.
The EC formally requested these member states to amend their laws following consideration of their replies to letters of formal notice sent in April 2006, in which the EC sought to verify whether the countries’ restrictions are compatible with Article 49 of the EC Treaty, which guarantees the free movement of services.
“The Commission considers that the restrictions in question aren’t compatible with existing EU law,” the commission said in a March 21 statement. “Furthermore, existing national operators cannot be regarded as nonprofit operations, given that they are subject to strict annual revenue targets and often rely on commercial retail outlets to market their various gambling services.”
The formal requests take the form of “reasoned opinions,” the second stage of an infringement procedure. If there’s no satisfactory reply within two months, the EC may refer the matter to the European Court of Justice (ECJ).
The Commission’s decision to inquire into the compatibility with EU law of the measures in question is based on complaints made by a number of service providers and on information gathered by Commission staff. The complaints concern restrictions on the provision of sports betting services, including the requirement for a state concession or license, even where a provider is lawfully licensed in another member state.
Online battle widens
The ECJ has previously stated that any restrictions that seek to protect general interest objectives, such as the protection of consumers, must be “consistent and systematic” in how they seek to limit betting activities. A member state can’t invoke the need to restrict its citizens’ access to foreign gambling services if at the same time it encourages them to participate in state lotteries, games of chance or betting which benefits the state’s finances, the ECJ ruled.
The European Betting Association (EBA), representing private operators, said that the EC’s actions were justified. “None of the countries targeted has shown any sign of engaging in the necessary reforms,” the EBA said in a statement. “On the contrary, some have recently been moving toward more stringent prosecutions of European-licensed operators despite the fact that the legal basis for these actions was seriously questioned by EU authorities.”
Meanwhile, European online gambling companies, with an estimated annual turnover of € 5 billion (Kč 140 billion), have expanded their activities to Hungary as well, some of them even providing customer service in Hungarian. As the Web sites are operated from abroad, it’s difficult for supervisory authorities to take action against them despite the fact under current Hungarian law only state-owned gaming company Szerencsejáték has permission to organize online gambling. International online gambling companies and Hungary’s Gambling Supervision (SzF) have been battling since 2004, when U.K. firm Sportingbet extended into Hungary, followed by Austria’s Betandwin.com Interactive Entertainment in 2005.
While the gambling situation in the Czech Republic was not addressed by the EC in its letter, foreign and domestic betting firms have been complaining that Czech law concerning online gambling is also at odds with EU regulations (see “Operators hedge their online bets,” CBW, March 26, 2007).
Excellent news, thanks for that
thanks Karim for the news
