EGBA Applauds Court Asking if French Gaming Monopoly Abides by EU Rules

European Betting and Gaming Association (EGBA) Secretary General Sigrid Ligne said their organization was 'delighted' with the decision by the Court of Appeal of Versailles to formally question whether France was compling with EU's top court rulings on unrestricted access across EU member nations for EU-based gambling and betting operators (including online poker sites).

The European Court of Justice (ECJ) has repeatedly ruled that any gambling or betting business legally established in one EU state can offer its services anywhere else in the 27-nation bloc, and that any restrictions can only be for reasons of general public interest, if uniformly applied.

The French court decided on Friday to determine if the French national betting monopoly is compatible with EU rules, placing the burden of proof on the French authorities to justify that their regulatory framework with regard to gaming is consistent, proportionate and justified.

The Court also determined that referring a question for a preliminary ruling to the ECJ was not necessary as EC law was clear enough.

"We are delighted with this decision," EGBA Secretary General Sigrid Ligne said. "It is an important one and comes in the general context of the commitment taken by the French authorities to propose a controlled opening of the French gaming market by March 2008."

Friday's court decision focused on a request by Didier Dewyn, former chief executive of Mr Bookmaker, a betting firm licensed in Malta and now owned by Unibet, to scrap proceedings against him for organising "illicit lottery" and "clandestine betting on horse races", the EGBA said.

RELATED CASES UNDERWAY

On a parallel front, the EGBA has also challenged the German states over their protectionist gaming policy that went into effect January 1st (click here for related article).

The French court's determination could impact another gaming case in France, also against a Unibet staff, Chief Executive Petter Nylander. Last October, he was detained by Dutch authorities after a French judge issued a European warrant for his arrest, accusing him of breaking French betting laws. The international outrage triggered by Nylander's arrest caused France to back down and release the Unibet chief on bail (click here for related article).

EU Internal Market Commissioner, Charlie McCreevy, has started legal action against France, saying its ban on private betting restricts EU rules on the free movement of services (click here for related article).

France and Brussels have scheduled meetings to resolve their differences (click here for related article).

McCreevy has long been pressing for free movement of goods and services between EU member nations. He has legal actions against 10 EU states underway for restricting competition in their gaming sectors, and is expected to move forward with several of the cases later this month.

Many EU states have defended their lucrative gaming and lottery monopolies, saying there is a need to protect consumers from gambling addiction (while advertising their own state-supported gaming, betting and lotteries).

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