Greece, Netherlands, Germany and Sweden under EU investigation for breaking free trade laws
The European Union is exerting its rights to enforce free trade in Europe in the field of online gambling.
Greece and the Netherlands have both been warned by the EU that their exclusive policies are illegal. Member states may not discriminate against trade from other states. The two countries involved banned foreign online gambling providers, to protect their own nationally and privately run gambling activities.
In Greece, gambling activities are run almost exclusively by OPAP, with little competition. OPAP has an exclusive licence to provide Greek gambling until 2020. Dutch gambling is run by De Lotto and Holland Casino, protected by an exclusion of online competition clause.
The European Commission warned that if Greece and the Netherlands do not comply with EU free trade laws, they will face legal action at the European Court of Justice.
Germany has already been involved in a tussle with the EU over its gambling policies, since it introduced a ban on overseas gambling providers in January 2008. Sweden was also cautioned, after a state poker site was launched, to the exclusion of other providers. Other countries that could face action include Denmark, Finland and Hungary.
The gambling trade association, the Remote Gambling Association, has welcomed the EU’s decision to intervene.
This shows that protectionism will not be tolerated and that free trade must be allowed within Europe. Having already been booted out of the US market by the Unlawful Internet Gambling Enforcement Act last year, online casinos and betting sites cannot afford to lose more customers.
As well as protecting trade interests, the EU argues that consumers are entitled to a choice, and should have the option of choosing the best offer, whether provided by domestic or foreign companies. EU commissioner Charlie McCreevy criticized the hypocrisy or some member states, which bans foreign gambling providers on the grounds of protecting their citizens, while actively promoting betting and gambling run by state monopolies.
Gambling is a lucrative business, and governments certainly want to get their share of the pie. However, this EU intervention clearly states that competition must be allowed and that state governments must learn to share.
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