EGBA: Euro court mistaken in allowing Portugal monopoly law
The European Gaming and Betting Association has responded to today's ruling by the European Court of Justice allowing a Portugese law protecting charity Santa Casa de Misericordia's monopoly on betting and lottery games provided that the law is designed to combat fraud and other crimes, arguing that the ECJ has misread EU rules.
THE EUROPEAN GAMING AND BETTING Association (EGBA) has hit out at today’s ruling by the European Court of Justice against Bwin that a Portugese law giving charity Santa Casa da Misericordia (SCM) a monopoly on betting and lottery games is allowed under EU law provided that it is designed to combat fraud and other crimes.
As reported on EGRmagazine.com, the ECJ today ruled that the Portuguese monopoly on the internet may comply with EU law provided that restrictions imposed by a member state are “suitable for achieving the objective or objectives invoked by the member state concerned and must not go beyond what is necessary in order to achieve those objectives. Lastly, in any event, those restrictions must be applied without discrimination”.
However, EGBA said that those conditions were not met by Portugal in the SCM case, as the law was not necessary to combat fraud or any other crime.
EGBA secretary general Sigrid Ligné (pictured) said: “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.”
The Association also argued that the lack of necessity of the monopoly law to prevent fraud was demonstrated by other member states that have managed to prevent fraud in online gambling without laws ensuring a monopoly.
Ligné added: “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.
“Today’s judgement must 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. “
EGBA is comprised of Bet-at-home, Bwin, Digibet, Expekt, Interwetten, PartyGaming and Unibet.
Bwin also responded to the judgement earlier, arguing that online businesses are more able to prevent fraud than land-based bookmakers, and that EU law has not kept pace with the development of internet businesses.
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