EC To Take Action On Sovereignty Issue
Published: Tuesday, March 14, 2006 Online-Casinos.com
EUROPEAN COMMISION TO TAKE ACTION ON SOVEREIGNTY ISSUE
Monopolistic actions in restricting adverts and gambling services to be challenged
The International Herald Tribune reports that six European Union countries
face legal action later this month by the European Commission for maintaining
bans on gambling while permitting their citizens to wager in their national lotteries.
The European Union's internal market commissioner, Charlie McCreevy, is
quoted as saying he wants to take action against Germany, Finland, Sweden, Italy,
Holland and Hungary for restricting the advertising and promotion of gambling
services as well as on the gambling services themselves. "We should proceed
against all these countries," McCreevy told the newspaper.
Commenting that national governments have become addicted to the revenue that
their national lotteries bring in, the Tribune says that as Europeans spend more
on lottery tickets, governments find it harder to finance public spending through
orthodox means like taxation. To protect their gambling monopolies, the governments
in question turn to frustrating efforts to create a more level playing field for
competition in the gambling and lottery business.
The European Commission has tried several times to break down what amount to monopolies
on gambling that are held by national lotteries but its efforts have been thwarted
by the member states.
Most recently, the commission tried to include gambling in its controversial and
wide-ranging services directive, but members of the European Parliament threw
out the clause on gambling.
"The official reason for opposing other forms of gambling is out of social
concern, but the real reason they want to restrict other gambling outlets is because
they don't want to lose the contributions to state coffers they get from their
national lotteries," said Torbjorn Ihre, head of public affairs at
the Brussels- based European Betting Association.
The Swedish lottery generates about Euro 2.7 billion, or $3.2 billion, in annual
revenue, according to Ihre, who is Swedish.
"A fifth of that is profit, and most of it goes into the state budget,"
he said. In Hungary, where per capita income is lower, the state lottery is expected
to generate Euro 52 million this year, 20 percent more than last year, according
to the European Lotteries and Toto Association Web site.
Governments claim that by limiting betting to national lotteries - or totos, as
they are sometimes called - they can control gambling abuse by minors and by money
launderers, Ihre said.
But that argument may not help the six countries facing legal action if they end
up in court. The European Court of Justice in Luxembourg has ruled that
social concern is a legitimate reason for countries to ban gambling, but not when
they have a national lottery.
Still, given the sensitivity of the issue, McCreevy sounded uncertain of the outcome
of any confrontation over gambling. "Let's get to court," he said. "If
we are ruled against, then so be it, but let's get on with it."
