European Betting Companies Look To EC For Moves Towards A Single Market, by Ulrika Lomas, Tax-News.com, Brussels
Monday, February 15, 2010

European Internal Market Commissioner Michel Barnier's recent commitment to address the situation of gaming and betting at EU level has been welcomed by the betting industry, despite increasing evidence that European countries are going their own ways.

The European Gaming and Betting Association (EGBA) has welcomed this and a recent opinion of European Advocate General Bot in the betting case involving Winner Wetten (C-409/06) in which he confirmed that the primacy of EU law over national gaming legislation does not allow for any exception or transitional period.

Addressing members of the European Parliament, Commissioner Barnier confirmed that the analysis of the Commission Legal Service regarding the most recent European Court of Justice ruling (Santa Casa, C-42/09) does not change fundamentally the Commission’s approach towards infringement procedures.

The Commissioner said that the Santa Casa ruling of September 8, 2009 was based on considerations specific to Portugal and to its national monopoly operator. The Commission will therefore continue to examine the compliance of national legislation with EU law on a case-by-case basis.

Sigrid Ligné, Secretary General of the EGBA, commented: “With several member states currently reforming their gaming and betting legislation, this is an important confirmation that the Commission will not stand by while member states introduce restrictions that go against fundamental principles of the EU. We believe that the respect of internal market rules in our sector will promote high standards and improve the protection of players throughout the EU”.

Only recently the EGBA had raised grave concerns against Belgium gambling legislation which:

• required online operators to be established in Belgium;
• unjustifiably, in EGBA's opinion, limited the number of available licenses;
• required servers to be located in Belgium; and
• imposed criminal sanctions on consumers wishing to play with EU licensed operators.

Ligne added: “It is baffling that Belgium does not take into account the opinion of the European Commission that crucial elements of the law are in conflict with EC law requirements. And even more so with a view to the upcoming Belgian presidency of the EU. How can Belgium show leadership in the EU, if it blatantly chooses to ignore the EC Treaty?”

Commissioner Barrier has signaled his intention to engage in a broad consultation with stakeholders and to work on a political document, based on reliable figures and a clear diagnosis of the situation in Europe.

The Commissioner raised the prospect of a Green Paper on gambling, a move which EGBA believed could offer a real opportunity to test the interest and support of the European Parliament and member states for future EU harmonization in the sector.