MORE TIME FOR FRANCE AND GREECE IN EC HASSLES

31 August 2007

On the threshold of legal action, a breathing space


France and Greece have been given a further sixty days to respond to the European Commission over their claimed monopolistic barriers to participation in their gambling industries by other European Union members.

In an announcement this week, European Commission spokesman Oliver Drewes said the extension was granted on applications from the two countries, who are among several in the Commission's cross-hairs for their exclusive legislation regarding Internet gambling.

The Commission took France and Sweden to within one step of European Court of Justice action in June when it also gave Greece an initial warning that it too was at risk over its gaming laws.

It gave all three countries two months to respond, reports the Reuters news agency.

"The deadline for Greece and for France is now 29 October," Drewes, a spokesman for the executive's Internal Market Commissioner, Charlie McCreevy, today (Tuesday).

"We have not seen anything from Sweden so far but as they did not ask for an extension we assume it's on its way," Drewes said.

The situation in France had changed since a court ruling last month was favourable to EU law, Drewes said.

France's top court overturned a ruling that banned a Maltese firm, Zeturf (see previous InfoPowa reports), from offering online horse race betting in France, adding to pressure from Brussels for France to end the state's lucrative monopoly.

The French case will trigger a retrial which could take up to a year to come to court.

Drewes said there were good contacts with the Greek authorities. Greek betting monopoly OPAP is a listed company and one of Europe's biggest betting firms but competition is restricted - even though OPAP competes in neighbouring Cyprus.

Sports betting and gambling is a state-owned monopoly in many EU countries, generating large amounts of revenue for governments but thwarting attempts by private-sector rivals to get a piece of the multi-billion-euro action.

McCreevy has said there was no agreement among EU states to adopt pan-EU rules on gaming due to a wide range of views but he was ready to use his legal powers to stop unjustified restrictions on the free movement of services in the bloc.

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