European gambling companies received some positive comments from the new European Internal Market Commissioner Michel Barnier this week. Speaking for the first time since taking over the role in January, Barnier told the European Parliament Thursday that last year’s bwin/Santa Casa ruling by the European Court of Justice (ECJ) has little bearing on the Commission’s approach to infringement procedures against member states.
In September, Santa Casa da Misericórdia de Lisboa claimed that bwin’s sponsorship agreement with the Portuguese professional football league and accompanying advertising activities were illegal because of Santa Casa’s monopoly in providing online and offline lottery and betting services in Portugal. Under Portuguese law, Santa Casa was exclusively entitled to run lotteries and sports betting in the country. In 2003, that exclusive right was extended to include games offered by electronic means, in particular the internet, essentially prohibiting all other operators from offering online gaming services in Portugal.
The ECJ ruled that the Portuguese monopoly on the internet may comply with community law under certain conditions, but restrictions imposed by a Member State “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.”
Barnier told parliamentarians on Thursday that the Santa Casa ruling was based on considerations specific to Portugal and its national monopoly operator, Santa Casa da Misericórdia de Lisboa. The Commission will therefore continue to examine the compliance of national legislation with European Union law on a case-by-case basis.
The European Gaming and Betting Association (EGBA), which represents Europe’s leading regulated operators, voiced its strong support for the Commissioner and his plans to engage in broad discussion with stakeholders. The EGBA particularly welcomed the prospect of a Commission Green Paper on gambling, a document intended to stimulate debate and launch a process of consultation directed toward changing law. The Association believes the move could offer a real opportunity to test the interest and support of the European Parliament and Member States for future European Union synchronization in the sector.
Said EGBA Secretary General, Sigrid Ligné: “With several Member States currently reforming their gaming and betting legislation, this is an important confirmation that the Commission will not stand by while Member States introduce restrictions that go against fundamental principles of the EU.”
Barnier took over the role of Internal Market Commissioner in January from Charlie McCreevy, a proponent of European Union harmonization in the gaming sector who was criticized during his tenure by the gambling industry for failing to follow through on infringement procedures against member states with restrictive gaming legislation.
