France Arrests Bwin Execs for Violating French Gaming Laws

Manfred Bodner and Norbert Teufelberger, joint chief executives and founders of Bwin Interactive Entertainment AG (formerly known as Bet and Win) may face up to three years in jail if they are found guilty of violating gaming laws in France. Poker players take note since Bwin's online poker sites include PokerRoom.com and EuroPoker.com.

The two company founders were arrested last week as they prepared to give French press details of their company's sponsorship deal with the Association Sportive (AS) Monaco football club.

Following a complaint from the French lottery and horse betting operators, Bwin, an Austrian-based company, is being investigated because of its promotional activities in France, including the aforementioned deal with Monaco, and two other French Clubs.

Bodner and Teufelberger were required to post bail of €300,000 each in order to be released from jail. The French magistrate also told Bwin to post a message on its French gaming pages to make it clear the service may go against gambling regulations.

No official charges have been filed against Bwin or its co-chief executives yet. The investigation could take as long as a year before it's complete.

Bwin spokesman, Konrad Sveceny, admitted that the company may have been in breach of French gambling laws. "French betting law says we cannot advertise in France unless we have a French license, and to have a license you have to be one of the two French betting monopolies."

But Sveceny emphasized, "It [the Bwin promotional campaign in France] may not be in accordance with French law, but it IS in accordance with European law."

Three years ago, a judgment from the European court of justice, known as the Gambelli ruling, took steps to limit the ability of EU member states to inhibit online firms from competing with their domestic operators. A further ECJ judgment later this year is expected to strengthen this ruling, to make a more even playing field across the EU for online operators.

But for now, the arrests are worrysome to other gambling companies with sponsorship deals with teams in France. Last month 888.com, who owns Pacific Poker, signed a two-year sponsor the Toulouse Football Club. Also, PartyGaming, owners of Party Poker, inherited a similar sponsorship deal with the Nantes team, with their acquisition of Gamebookers.

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