European legal update

European legal update

IGCE, November 5th 2006, Dublin

Evelyn Heffermehl

ULYS law firm


• ContentCommission’s infringement proceedingsFrance’s unsettled climateBelgium’s draft proposal on games of

chance


• Until last April Commission did not initiate any infringement proceedings

• April 2006: opening of infringement proceedings against seven member states

Limited to sports betting market Does not touch upon existence of

monopolies as such but examines consistency of gambling policy


• Commission infringement meeting October 12th: new proceedings

Italy: disproportionate character of the Italian finance act 2006 imposing blocking of sites in view of article 49 EC Treaty

Austria: national legislation prohibits promotion and advertising of foreign casinos +discriminatory gambler protection provisions only protects Austrian nationals

France : restrictions imposed by national legislation on private online bookmakers licensed in the EU whilst ever expanding national offer by monopolies


• Why did the Commission decide to act ? Exclusion of gambling from Services directive Numerous complaints lodged by bookmakers Intense lobbying by private operators• National developments: Germany’s constitutional court ruling March 2006 Italy’s decision to block gambling sites: notification had been

sent to Italy but legislation remained in place despite DG enterprise’s LFN on non notification aspect (directive 98/34) in June

France: Bwin arrest “straw that broke the camel’s back” + other complaint lodged at DG Competition by main body representing casino sector based on abuse of dominant position


• France: The Bwin “case”• Complaint by FDJ (monopoly) to the “Juge

d’instruction” : “super cop” with investigative and judicial competences : decides whether sufficient charges to defer matter to courts

• Arrest followed sponsorship deal with Monaco football club

• Charges: “unlawful games of chance, unlawful lotteries, advertising of a prohibited lottery, unlawful horse betting”

• Investigation still going on


• France

• Finance minister has announced toughening of sanctions against advertisers: could rise up to 5 times amount of investments against only 4500 € today

• Government envisages blocking of sites (// Italy): French ISP association not in favour


• Gaming battle between France and Europe has started

• Possible consequences Freezing of ongoing actionsMid term market opening • High administrative court also seized of the

consistency of the FDJ monopoly with EU law• Climate unsettled at the moment: government is

toughening its stance but difficult to know whether it will “walk the talk”


• Belgium: draft proposal on games of chance

Possibility for EU remote gaming operators to obtain “certificate” (quality label) with Gaming Commission provided they fulfil certain conditions.

Likely adoption end 2006 via the Finance Act


• Where from here?De facto de regulation process taking place at

national level : Germany, Italy, BelgiumReal push comes from market Commission: “defensive” stance, follows

evolution at national level before acting• De regulation: two to five years Community act not on the agendaNo European unlawful internet gambling act !

Thank you for your attention

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European legal update