EU court: OPAP monopoly unjustified
Luxembourg-based judges say Greece goes beyond what is necessary to ensure player protection.
Greek gambling operator OPAP has seen its share price fall by 11% after its sports betting and games of chance monopoly was ruled illegal by the European Union’s highest court.
The European Court of Justice in Luxembourg ruled this morning that the Greek government was in breach of EU law, which prohibits national rules granting exclusive rights to a single operator and reducing the number of gambling options available to residents.
In a case filed by Stanleybet, William Hill and Sportingbet “ all of which have or had a presence in the Greek market “ the Court ruled that the legislation enacted to justify OPAP’s expansion and the public promotion of its products went “far beyond” what is necessary to channel consumers towards the controlled provision of gambling services.
The judges stated that should Greece opt to liberalise its gambling market, it must do so in a transparent manner and treat both local and foreign operators equally.
Following the ruling, shares in OPAP plaunged 11%. Listed UK operators saw a share price boost, including William Hill’s which climbed by 2.4%.
International operators have long claimed that Greek gambling laws were of a protectionist nature towards OPAP which holds a monopoly across all offline betting products in Greece including sports betting and games of chance including Keno.
Late last year, egaming lobby groups the Remote Gambling Association (RGA) and European Gaming and Betting Association (EGBA) filed a joint complaint to the European Commission in the light of the lack of transparency concerning the extension of OPAP’s monopoly. The groups expressed concerns about the “non-notification” of measures expected to result in the extension of OPAP’s monopoly in the EU country until 2030, while again questioning the compliance of Greek regulations with EU law.
Clive Hawkswood, chief executive of the RGA, said of today’s news: “Although it is referring to the old legislation, we welcome the judgement of the Court of Justice of the EU as it clearly shows that the expansion of OPAP’s activities is not EU-compliant.
“It therefore substantiates further our claim that the new extension of OPAP’s exclusive rights to certain types of online games breaches EU law. We hope that this ruling will spur the Greek Authorities into action and to bring their legislation into line with EU regulations.
“The Court today has come out strongly against Greece, and we hope that this will in turn be a signal to other Member States that compliance with EU law is expected of them,” he added.
Sigrid Ligné, secretary general of EGBA, added: “We welcome the CJEU ruling that confirms that Member States must adhere to the requirements of EU law. Given the factual setup of OPAP’s monopoly which clearly fails to meet the CJEU test we hardly expect effective control to be implemented in the future.
“Therefore, Greece should follow the Court’s clear advice to liberalise the market. The ruling is highly relevant and gives the EC yet more jurisprudence to put an end to non-compliant gambling policies across the EU.”
Greece is in the process of attempting to sell its 33% share in OPAP, having sparked a seven-way bidding war after it put the stake up for sale earlier this year, however the ruling and subsequent share price damage could affect the final price which most analysts value at around 1bn. No official valuation has been announced.
Potential suitors include a consortium involving Playtech and German gaming machine manufacturer Gauselmann, and Fosun International, a Chinese business conglomerate.