13 July 2008

Online betting: Can the European Commission enforce the principles of the EU Treaty?

Whilst a rigorous process within the European Commission (Commission) has been instituted to protect the EC Treaty, questions are now being raised about whether this process is working. Twelve to fifteen months after having received a Reasoned Opinion, the Commission’s final warning before the seizure of the European Court of Justice (ECJ), several Member States have still not taken any concrete legislative measures to amend their gambling laws and put an end to breaches of the EC Treaty. Instead, these States continue to unfairly restrict the free movement of services across the EU, strictly enforcing the domestic laws that are being challenged by the Commission through the infringement proceedings.

Despite having had several recent opportunities to do so, the Commission has failed to take the next step and bring these non-compliant Member States to the ECJ.

The Remote Gambling Association (RGA) and the European Gaming and Betting Association (EGBA) the leading trade associations in Europe, are disappointed by these delays especially after the strong criticism voiced by the European Ombudsman in 2006, confirming that, regardless of political sensitivity, sports betting cases must be dealt in due time by the Commission, including the College of Commissioners.

Additionally, during an exchange of views with Members of the European Parliament on the 27th May 2008 within the Internal Market and Consumer Protection committee, Commissioner McCreevy confirmed his duty to enforce the decisions of the ECJ and to act when he receives a complaint. He also said “I am frustrated with the lethargy in moving forward with these proceedings”.

Clive Hawkswood, Chief Executive of the RGA comments “Gambling has become a real test of the Commission’s ability to resist national protectionist pressures. More generally, it is the functionality and credibility of the Institution as Guardian of the EC Treaty that is at stake.” According to Sigrid Ligné, Secretary General of the EGBA “Well-established and responsible online gaming and betting companies in the EU have had to endure unfair restrictions, discriminations and missed business opportunities for nearly a decade. Each undue delay to bring non-cooperative Member States before the ECJ distorts the internal market, restricts consumer choice and results in incremental costs and damages to many European companies. More than ever, the Commission needs to demonstrate that it can and will enforce the Treaty that it was put in place to protect.”

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For further information or comment please contact:

Clive Hawkswood: +44 20 74 79 40 40 chawkswood@rga.eu.com

Sigrid Ligné: +32 (0) 2 256 7527 sigrid.ligne@egba.eu

The RGA represents the worlds largest licensed, and stock market-listed remote gambling companies and provides the industry with a single voice on all the issues of importance to regulators, legislators, and key decision makers around the world. www.rga.eu.com

The EGBA is an association of the leading European gaming and betting operators. EGBA is a Brussels-based non-profit making association. It promotes the right of private gaming and betting operators that are regulated and licensed in one Member State to a fair market access throughout the European Union. www.egba.eu www.responsiblegamingday.eu

Background on the European Ombudsman’s Special Report:

The European Ombudsman, Nikiforos Diamandouros, published, on 30 May 2006, a special report on Commission's handling of a sports betting complaint. A special report is the strongest possible action the Ombudsman can take. Since the establishment of the European Ombudsman in 1995, the institution has issued only 13 special reports.The report indicated that "the Ombudsman considers that the present case raises an important issue of principle, namely the question as to whether the Commission is entitled indefinitely to delay its handling of complaints alleging an infringement of Community law by a member state on the grounds that it is unable to reach a political consensus on how to proceed". The Ombudsman report stated that the Commission has a duty to deal properly with all infringement complaints, even if they are 'highly politically sensitive or controversial'. He thus recommended the Commission to "deal with the complainant's infringement complaint diligently and without undue delay".

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