RGA pressures Greece to dismantle OPAP monopoly
Letter urges Deutsche Bank and the National Bank of Greece to highligh ongoing complaints lodged with European Commission in sale process.
The Remote Gambling Association (RGA) has urged those responsible for the sale of Greece’s stake in OPAP to make bidders aware of several legal complaints concerning the operator’s preferential treatment by the Greek government.
In a detailed letter to Deutsche Bank and the National Bank of Greece, the RGA has highlighted the three outstanding complaints lodged with the European Commission (EC) by remote operators, as well as petition lodged in the Greek Council of State.
The Hellenic Asset Development Fund (HRADF), the country’s privatisation agency responsible for selecting a buyer, has started the tender process for the Greek Government’s 33% stake in OPAP, with submissions of interest due by 19 October.
However the RGA continues to challenge the unfair treatment of private sector online gambling operators, arguing that gambling legislation passed in August 2011 protects OPAP’s monopolistic position and is unfairly detrimental to its remote operators.
Director of projects and policy at the RGA, Sue Rossiter told eGR: “Anybody who purchases OPAP shares needs to know that it will not have a clear path to market and that we are still going to continue with our complaints, which means there is a legal risk attached to the sale.”
The letter sets out three complaints currently lodged with the EC which could have a material effect on the future value of OPAP.
They include an outstanding complaint in respect of state aid in support of OPAP, a further complaint against OPAP’s exclusive right to the online sports betting market, and a petition in the Greek Council of State which the RGA submitted February 2012 as a legal challenge to the Greek Government’s taxation regime for remote gambling.
The EC has pressured the Greek government to improve market competitiveness, and last week it confirmed plans to set a new 30% levy on gross earnings from all its games and a flat 10% rate on all player winnings from 1 January 2013. The announcement saw OPAP’s share price fall by almost a fifth.
Clive Hawkswood (pictured), chief executive of the RGA, said there are still other “major issues” that have still to be resolved, “not least the fact that the intention is still to let OPAP have a monopoly in the online sports betting market”.
“Given that there are a number of significant challenges to the new gambling regime in Greece, it is only right that we brought these to the attention of Deutsche Bank to ensure that they are properly reflected in the sale process,” he said in a statement.
“Of course, if the online sports betting market is fully opened and all participants are taxed and treated equally our position may change and the Greek Government, online betting customers and gambling operators will benefit from a fair and competitive market that operates in compliance with EU rules.”