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EU Starts Legal Action Against Sweden & Germany Over Gambling Practices

by PokerPages.com
Fri, Feb 1st, 2008 @ 12:00am

The European Commission (EC) has begun legal action against Sweden and Germany on 31 January challenging their protectionist practices against foreign gambling operators, to bring them into compliance with EU directives that give EU-based operators the free movement of goods and services between the 27 EU member countries (Article 49 of the EC Treaty).

SWEDEN

Sweden's state-owned gambling company, Svenska Spel, offers and promotes online poker to its citizens, while competitors face near-insurmountable barriers to entry and Swedish newspapers are pressured into not taking advertising from competitors (click here for related article).

Stefan Widmark, the lawyer for the Swedish daily newspaper Aftonbladet, was quoted by Gaming Intelligence Group as saying, "We are very pleased that the Commission has taken up this matter with the Swedish government. In the letter from Aftonbladet to the Commission two weeks ago, we requested the Commission to take up the subject of poker, as the focus of previous actions has been on the field of sport betting."

The European Commission, the European Union's executive arm, has given Sweden two months to show how their protective measures against non-state supported poker games and tournaments are compatible with EU law.

Widmark said he hoped that the EC's decision would force the Swedish government to take action, but pointed out that previous moves by the Commission have had little effect.

GERMANY

A new German Interstate law came into force on January 1 that bans online gaming and betting, with the exception of horse racing. Financial institutions are also banned from processing transactions related to such 'illegal' online gambling services.

The EC had previously made known its opinion that such a course would conflict with the principles of free movement of goods and services between EU member countries.

Germany have also been given two months to respond to the EC.

WHAT NEXT?

If replies from both countries are not satisfactory, they can be taken to the European Court of Justice (ECJ), which is empowered to force nations to amend their laws or face financial penalties.

Last year, the EU court made two landmark rulings against Italian gaming restrictions. Judges in March struck down the use of criminal laws to hinder foreign companies including Stanley Leisure Plc of the U.K., and in September declared the country's licensing system illegal.

Read Related Articles:

  • EC About to Move Against Germany's Online Gambling Ban
  • Take Sweden to Court to End State Online Gambling Monopoly Says Major Daily Newspaper
  • Germany To Ring In New Years With Online Gaming Ban
  • Sweden Plays for Time to Milk Online Poker & Gambling Cash Cow Longer
  • EU Rejects French & Swedish Gambling Monopolies, Says Change or Face Court
  • Italy's Gambling Ban Ruled Contrary to EU Law- Hope for Online Poker?
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