EC questions compliance of Italian legislation
Court of Justice ruling follows dispute with UK operator Stanleybet.
The European Commission Court of Justice (ECCJ) has ruled that Italian gambling legislation seeks to protect the market position of licensed companies at the expense of new entrants, and as a result, contravenes European law.
The ruling follows a dispute with UK operator Stanleybet, that was blocked from applying for a licence between 1998 and 2006, prompting a claim for 1.5bn in compensation against the Italian government in May 2010.
The dispute arose over the fact that Stanleybet offered its sports betting services through agencies known as ‘data transmission centres’, allowing players to place bets via its UK servers. As a result it was blocked from obtaining a licence and the government brought sanctions against Marcello Costa and Ugo Cifone, two Stanleybet employees.
The ECCJ yesterday ruled the sanctions to be illegal, as EU Member States are unable to discriminate against new entrants to the market in order to safeguard the interests of current licensees and increase tax revenues. As a result Italy’s egaming legislation was ruled to be in violation of European law, rendering the sanctions invalid.
The court also ruled that greater clarification was needed over the procedure for awarding and withdrawing licenses.
Commenting on the ruling, European Gambling and Betting Association secretary general Sigrid Ligne said: “This very positive ruling confirms that national legislation that opens up and regulates the gambling market may not discriminate against new operators but must guarantee fair market access.”
“The Court has made particularly clear the ‘red lines’ that Member States must observe when they regulate gambling; it is high time for the European Commission to enforce the consistent case law of the CJEU and pursue complaints and infringements procedures accordingly,” Ligne added.