Analysis: Industry awaits EC action on OPAP monopoly
European Commission under pressure from remote operators to intervene as OPAP presses on with online sportsbook plans
When Greek monopoly OPAP defended its right to operate an online sportsbook this week, a collective groan could be heard from operators across Europe.
The organisation, of which the government sold its remaining 29% to investment fund Emma Delta last year, is facing mounting criticism of the recent launch of its sports betting site “ currently the only one approved by the government.
Critics say the move contravenes European law and believe OPAP’s claim that it acquired the exclusive right to offer sports betting online is, quite simply, not true.
And while industry opposition has been mounting over recent years “ including several complaints from online operators filed with the European Commission (EC) “ the launch of OPAP’s GTECH-powered sportsbook last month has fanned the flames of protest.
According to some sources the EC is taking a more proactive approach to investigating the legitimacy of OPAP’s online launch, and reports have suggested discussions over the country’s gambling market took place in Greece last week. Yet whether OPAP’s online business is at risk, or indeed what will happen to the operators paying GGR in the country under the temporary regime, remains a mystery.
A total of 24 remote operators were awarded interim licences in 2012 as a stop-gap while the Greek government implemented its egaming licensing regime “ a move which has never occurred.
OPAP’s claim dates back to 2011 when its offline monopoly was extended to 2020. The operator has stood firm in its belief that that agreement included online, given the language stated the right to offer products via “any appropriate means or measures provided by modern technology”.
But Teemu Lehtinen, a public affairs consultant formerly with Betfair, is not alone in believing OPAP is pushing its luck by persevering with its online plans.
On 26 May the Greek government rushed through new language setting out OPAP’s right to operate online. The legislation made no reference to other operators, describing OPAP as the sole ‘licensee’.
According to Lehtinen this was the first example of language permitting OPAP to legally take bets via a website, and lacks the “nitty gritty detail” expected when licensing an online operator.
“The bottom line of the case is simple,” he argues. “In July 2011, the former Finance Minister, now Deputy Prime Minister, Evangelos Venizelos, told MPs in the Finance Committee that OPAP did not have an exclusive online sports betting right and that there would be an open market licensing process for obtaining such licences.
“The Greek Government is trying to buy time and create further confusion on the gambling market while allowing OPAP to operate online without any proper licensing process and by short cutting EU procedures.”
Prior to the new online legislation emerged in May the EC requested various information and documents from the Greek regulator in order to assess the compliance of the Greek legal framework for gambling services with EU law.
No news has emerged on its findings and given there is a presidential election this year, the EC may delay any intervention until it has the political power to do so.
And so for the likes of William Hill and Betfair which have attempted legal action against Greece in the past, the waiting game for the country to clarify its egaming licensing plans will stretch on.
“I am waiting to see one of the 24 temporarily licensed companies or one of the blacklisted operators to ask Supreme Administrative Court to declare the Regulation not applicable and therefore OPAP to switch off,” says Lehtinen. “Failing that, the Greek regulator should blacklist OPAP and introduce both IP and financial transaction blocking against the company.”
In the meantime, OPAP’s online sportsbook can enjoy a lucrative World Cup and the firm can look forward to the start of the next football season.