Tuesday, April 03, 2007

In response to repeated complaints by online betting companies, the European
Commission (EC) took action to put an end to the obstacles to sports betting
services in Hungary, Denmark and Finland. The EC formally requested these
member states to amend their laws following consideration of their replies
to letters of formal notice sent in April 2006, in which the EC sought to
verify whether the countries' restrictions are compatible with Article 49 of
the EC Treaty, which guarantees the free movement of services. "The
Commission considers that the restrictions in question aren't compatible
with existing EU law," the commission said in a March 21 statement.
"Furthermore, existing national operators cannot be regarded as nonprofit
operations, given that they are subject to strict annual revenue targets and
often rely on commercial retail outlets to market their various gambling
services." The formal requests take the form of "reasoned opinions," the
second stage of an infringement procedure. If there's no satisfactory reply
within two months, the EC may refer the matter to the European Court of
Justice (ECJ). The Commission's decision to inquire into the compatibility
with EU law of the measures in question is based on complaints made by a
number of service providers and on information gathered by Commission staff.
The complaints concern restrictions on the provision of sports betting
services, including the requirement for a state concession or license, even
where a provider is lawfully licensed in another member state.