European Court Ruling Could Restrict Online PokerEuropean Court of Justice Rules in Favour of Portuguese Monopoly to Consternation of Online Gaming Industry |
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Europe’s highest court, the European Court of Justice, yesterday delivered a blow to online gambling companies when it ruled that Direccao do Departamento de Jogos da Santa Casa de Misericórdia de Lisboa, a charity which monopolises electronic betting in Portugal, could restrict the free movement of goods and services (in this case online betting) if it was in the public’s interest.
Austro-German betting giant bwin took the case after Portugal’s football league, La Liga, was fined by the state-monopoly after accepting sponsorship by bwin. The Portugues courts decided to let the European Court of Justice decide on the matter.
bwin argued that under EU law goods and services should be freely provided across the Union’s borders but the Luxembourg court said, “restrictions on the freedom to provide services may be justified by overriding reasons relating to the public interest.
:However, the Court notes that the restrictive measures that Member States may impose must satisfy certain conditions: they 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.”
Commenting in the aftermath of the ruling, bwin’s co-chief executive officer, Manfred Bodner, said today, “Online gaming has become a market reality. There is urgent need to develop a legal framework in tune with the times to warrant the interest of consumers, the state and operators. Court rulings will not be able to fill in for a regulation in the medium and long run.”
Norbert Teufelberger, also of bwin, said, “Only a regulated online gaming market with a diversified and attractive line-up of games will provide adequate security against the risks of a black market which in fact not only opens up the floodgates to crime but also passes up on consumer protection. This is why a growing number of Member States, including Great Britain, Italy or France, have reacted. We are confident that Portugal will also set the course for an attractive regulated online gaming market.”
bwin shares fell almost 6 percent by mid-afternoon Tuesday and closed yesterday at €28.50. They were trading at €28.21 at 1:00 p.m. BST today.
Earlier this week bwin announced it was to buy leading Italian online poker operator Gioco Digitale.
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