Bwin says ECJ Rulings are Opening Europe to Online Poker & Online Gaming

The Austrian-based gambling giant Bwin, issued a statement yesterday highlighting how recent European Court of Justice (ECJ) rulings and European Commission threats to nations acting against EU rules are positive milestones towards opening Europe to free movement of goods and services across EU state borders; for Bwin, this affects online poker, sports betting and online gambling.

This is significant to online poker players, since during March 2006, bwin Interactive Entertainment AG acquired all the online poker rooms on the Ongames Poker Network from the company formerly know as Ongame e-solutions AB (now renamed bwin Games AB).

Such notable Ongame-networked online poker rooms include: PokerRoom, HoldemPoker, Hollywood Poker, Americas CardRoom , Bet24Poker, ChecknRaisePoker, Pokerloco, BwinPoker, TowerPoker, and EuroPoker, amongst many others.

Bwin's statement outlines how during 2006 the European Commission, prompted by complaints lodged by private gaming providers, initiated infringement proceedings against seven EU member states. During 2006 the Commission also began infringement proceedings against Germany, France and Austria by sending them letters of formal notice.

The core matter that the Commission considered during these infringement proceedings was whether the national gaming regulations in question were compatible with higher level EU laws that permit companies licensed anywhere in the EU to freely move goods and services across EU state borders.

The first and normally private investigation stage of any infringement proceeding consists of a request for information in a letter of formal notice. This stage is usually unknown to the public, unless the Commission decides to issue a press release as soon as it sends a letter of formal notice because it feels a case is of exceptional significance to EU citizens (such as when an infringement has given rise to a large number of complaints).

After Denmark, Finland and Hungary replied to the Commission's written request for information, the European Commission resolved to move to the second stage, which is to issue a reasoned opinion.

Whenever a reasoned opinion is issued (and later if stage three is reached where a case is referred to the European Court of Justice), the Commission generally informs the public about these proceedings by issuing a press release (these stages are defined under Article 226 of the Treaty on European Union).

"Following the ground-breaking judgements by the ECJ in the cases of Gambelli and Placanica, the decision of the European Commission to continue infringement proceedings against three member states [Germany, France and Austria] provides further confirmation of Bwin's own legal opinion," Bwin's statement says (click here to read related PokerPages article about French arrest of Bwin's co-CEOs).

The statement continues, "In the absence of secondary legislation - gaming was excluded from the Services Directive - the European Commission will now have to consider whether, and to what extent the ways in which individual member states deal with the subject of gaming are in conformity with EU legislation as construed by Article 49 (freedom to provide services) of the Treaty on European Union."

"If the Commission fails to receive a satisfactory reply within two months, or if the restrictions to which the Commission has objected are not removed, it can refer the proceedings to the European Court of Justice (ECJ)."

Joint-CEO Norbert Teufelberger is quoted in the statement saying, "We welcome the judgement by the European Commission, which underpins the ECJ's Placanica verdict of 6 March 2007 [click here to read related PokerPages article about judgement]. The decision to continue infringement proceedings against three members states simultaneously is a clear warning addressed to France, Germany and Austria to remove their current restrictions on cross-border gaming immediately."

Joint-CEO Manfred Bodner added, "As long as national legislators are unable to agree on uniform pan-European regulations for the gaming market, national regulations will continue to be evaluated in the light of the freedoms of establishment and services anchored in the Treaty on European Union and the prohibition of discrimination."

"Any restrictions will be seen in the light of the requirements laid out in the Gambelli and Placanica judgements," continued Bodner. "Against this background, countries like France are called upon to draw up gaming legislation in accordance with EU law. Bwin would gladly give its constructive support to such a process, as it has in the past."

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