EU hits sports betting curbs in a wave of legal action
BRUSSELS (Reuters) – The European Commission took new steps yesterday to prize open sports betting markets in France, Sweden and Greece as part of a quarterly crackdown on EU rule busters. The Commission adopted 955 legal actions spanning telecoms, energy, gambling and the financial sector. «While important improvements have been made in recent years, too many member states persistently infringe upon Community law. That is why we are determined to act,» Commission President Jose Manuel Barroso said in a statement. The curbs on gambling competition in France and Sweden have not been shown to be necessary, proportionate and non-discriminatory, the Commission said in its final warning before the cases move to the European Court of Justice. The court can fine and force states to change their laws. «Furthermore, in the Commission’s view, existing national operators cannot be regarded as non-profit organizations, given that they are subject to strict annual revenue targets and often rely on commercial retail outlets to market their various gambling services,» the EU executive said. Brussels gave Greece two months to respond to a «letter of formal notice,» the first step in the EU’s infringement procedure against countries that break the bloc’s laws. The Commission also reminded Greece of its obligation to lift a total ban on gaming machines, including computer games. Sports betting and gambling is a state-owned monopoly in many EU countries, generating large amounts of revenue for government coffers but thwarting attempts by private sector rivals to get a piece of the multibillion-euro business. New French President Nicolas Sarkozy is seeking to downplay the importance of competition as a strategic objective in the 27-nation EU, saying he wants to help create more »European champions.» Swedish Prime Minister Fredrik Reinfeldt said on Tuesday that gambling in Sweden would be reformed. EU Internal Market Commissioner Charlie McCreevy told Reuters on Tuesday that it would be impossible to draw up EU-wide rules on gaming, given the wide differences in attitudes between EU countries toward the sector. «We hope the Commission will continue in its efforts to force these countries to act in accordance with the EU treaty and EU jurisprudence,» British sports betting firm Stanleybet International said. Athens told to lift ban on gaming machines, submit energy measures The European Commission yesterday formally reminded the Greek authorities of their obligation to lift the total ban on gaming machines, including computer games. The European Court of Justice ruled on 26 October 2006 that the Greek ban on all electrical and electronic gaming machines – including all computer-based games – at all public and private premises apart from casinos, violates the principles of free movement of goods, freedom of establishment as well as freedom to provide services. The Commission sent a reasoned opinion requesting Greece to adopt the measures required to comply with the judgment within two months. If Greece fails to do so, the European Commission could ask the European Court of Justice to impose financial penalties. Separately, the Commission launched court proceedings against Greece for failure to make known its implementing measures for the Energy Performance of Buildings Directive, adopted in 2002. Reasoned opinions – the last step before a formal complaint to the Court of Justice is lodged – were also forwarded to Estonia and Poland for failure to submit the necessary measures. The aim of the directive, which should have been implemented by January 4, 2006, is to reduce energy consumption in buildings by laying down national minimum energy performance standards for new buildings and major renovations of large existing buildings, as well as ensuring that heating and air-conditioning installations are regularly inspected to facilitate performance improvements.
