Analysis: What next for Greece?
With the legitimacy of the Greek government's privatisation of OPAP in question, what's the next move for egaming operators with an eye on the market?
With equity fund Emma Delta’s purchase of the Greek government’s 33% stake in gambling monopoly OPAP nearing completion, legal challenges and operator withdrawals are occurring in equal measure.
The deal is still to be ratified and cleared by the Greek courts, but it would appear that not even the dismissal of the Hellenic Republic Asset Development Fund (HRADF) chief Stelios Stavridis over ‘ethical concerns’ is likely to disrupt the process.
Opposition to the sale has been forthright and widespread. Online gambling lobbying group the Remote Gambling Association (RGA) announced plans to sue the Greek government earlier this month, saying an injunction on the privatisation was one weapon at the trade body’s disposal.
The first milestone for the RGA is the Greek Court of Audit hearing, scheduled to take place next month. The court’s view of the deal will shape any future challenges, but with such political weight behind the privatisation efforts, is any fight likely to be in vain?
The sale of the Greek government’s 33% stake in OPAP was promised as part of Greece’s bail-out package from the European Union and RGA chief exec Clive Hawkswood points towards the need to get OPAP off the books as a reason for this deal going ahead despite opposition. “While we’re obviously sympathetic to the plight of Greece, it doesn’t mean they can ride roughshod over all the rules,” he said.
Sports betting is responsible for approximately 60% of the online market in Greece, which may give some insight into the desire to hand OPAP such a monopoly, and Eurobank equity analyst Stamatis Draziotis succinctly describes any OPAP success in securing the monopoly as “market changing”.
A total of 401 egaming domains have been named on a blacklist of companies compiled by the country’s authorities, sparking something of an exodus. William Hill and Betfair are among the many operators to have stopped accepting bets from the country, although some others are still active in the market.
Greece has, perhaps predictably, warned of strong action in order to enforce the blacklist. Draziotis said that while it remains the internet service provider’s responsibility to block access to these websites, heavy fines and sanctions face those who do not comply.
Drazitotis noted that feedback from the European Commission regarding OPAP’s potential monopoly over online gambling products is expected and will be of considerable importance, but continual delays and standstill periods have held back movement.
And short of biding their time and waiting to see what happens, there appears to be little that online operators can do.
For operators still looking to maintain an interest in the country, the likelihood of a return appears to hinge on what plays out in the various court hearings. Given the political importance of meeting privatisation targets, any subsequent legal battle is likely to fraught and bitterly contested.