MONOPOLY UPHELD IN E.C.J. FINDING (Update)
11 September 2009
Bwin studying court's finding on its
Portuguese football initiatives
The long-running litigation between Austrian online
gambling giant Bwin and the Portuguese state betting
monopoly Santa Casa (see previous InfoPowa reports) has
entered a new and negative phase following a ruling from
the European Court of Justice.
The Court has
found that the Portuguese government's gambling monopoly
may comply with European Union law, ruling that the
prohibition which Portuguese legislation imposes on
operators such as Bwin (operator of betandwin.com) of
offering games of chance via the Internet may be
regarded as compatible with the freedom to provide
services, if it is designed to combat fraud and other
crimes.
The case has its roots in an attempt by
Santa Casa to halt a sponsorship deal involving the
Portuguese football league that allowed Bwin to
advertise website links to fans.
The ruling will
be regarded with disappointment by many online gambling
firms interested in challenging the monopolistic
tendencies of several European Union member nations.
Such challenges are based on the right to free movement
of goods and services across the borders of EU member
nations, but the new ECJ ruling appears to qualify and
restrict this basic principle.
The ECJ was
involved in the dispute when the local Portuguese court
in Porto referred the matter for guidance to the ECJ.
The finding by the superior court will now be handed
down to the Porto judiciary who will make a final ruling
on the case - setting an EU precedent.
A
statement is expected from Bwin shortly.
The
European Gambling and Betting Association (EGBA) was
quick to comment on the Court's finding, observing that
it included the wording that restrictions imposed by a
Member State ...must be suitable for achieving the
objective or objectives invoked by the Member State
concerned, and they must not go beyond what is necessary
in order to achieve those objectives. Lastly, in any
event, those restrictions must be applied without
discrimination.
Sigrid Ligné, Secretary General
of the EGBA remarked: Given the stringent anti-fraud
regulations applicable to EU licensed operators which
ensure a high level of integrity, transparency and
traceability over online gaming transactions, we do not
believe those conditions are met. Several jurisdictions
in the EU already prove that it is possible to guarantee
a high level of consumer protection and have a well
regulated and competitive online gaming market at the
same time.
Ligne observed that the judgment
should also be seen in the context of the increasing
number of Member States that are now in the process of
rethinking and redrafting their gaming legislation.
"As has been obvious for all other consumer markets
before, none of the Member States currently drafting
legislation has chosen a monopoly model to regulate this
modern Internet based market," she said.
When
InfoPowa went to press Tuesday, Bwin shares had taken an
almost 10 percent hit on the news.
Online Casino News Courtesy of
Infopowa
More news here.
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