Betting industry at odds with Commission over liberalisation

By Anna McLauchlin

Date: 06/10/05

Europe's private betting associations have hit out at the European Commission's decision to delay launching legal action against gambling infringements, as tensions over the liberalisation of the sector continue to rise.

According to sources, the cases have been pulled from the Commission's agenda on 12 October.

A spokesman for the Commission confirmed that they would not form part of Wednesday's round of infringement cases, and said that the EU executive was waiting for the results of a Swiss study commissioned to look at the economic impact of liberalising the European gambling industry.

Several commissioners opposed the proceedings - against Denmark, Germany, the Netherlands, Sweden, Hungary, Italy, Greece and Finland - in July. The countries involved are suspected of protecting their gambling markets from foreign competition.

"It's ridiculous," said one betting association lobbyist. "First they were delayed because of the German elections, now because of this study."

"The Commission's legal services have given the green light every time on this," said Didier Dewyn of the European Betting Association. "The Commission should be the guardian of the treaty not a pawn stuck between different nations."

Dewyn said that the fact that members of the European Parliament look set to vote for excluding gambling entirely from the scope of the EU services directive has upped the stakes. "It's even more important that the Commission sends a signal now," he said.

But the Commission spokesman said that the executive had found itself under increasing pressure from the pro-liberalisation camp. "It's true that if we apply the European Treaty then we have to give in to liberalisation or we could be sued as a result," he admitted.

But commissioners are hampered by the reluctance of their national governments to relinquish control over such a sensitive sector. Their treasuries worry that competition will lead to huge losses in fiscal revenue, as well as a sharp rise in the number of people turning to gambling as a leisure pursuit.

"We are talking about €25 billion that goes to good causes at the moment, that would go into the private pockets of the gambling industry," argues Tjeerd Veenstra of the European Lotteries and Toto Association.

"It is absolutely premature to launch infringement cases before the Swiss study has come out and would send a wrong signal from the EU internal market authorities that should not muscle in on the power of member states to regulate their own activities."

But some have already questioned the impartiality of the study, part of which has been subcontracted to a UK centre that is supported financially by British betting company Stanley Leisure. The latter has been particularly active in pushing for liberalisation.

French centre-right deputy Jacques Toubon raised the issue at last week's plenary session in Strasbourg, but Internal Market Commissioner Charlie McCreevy insisted that the study was only a fact-finding exercise.

"I will not be taking any policy decisions purely on the basis of the study," the commissioner said. "The study will assist us all in a better understanding of the issues involved, but it is my intention to consult fully before taking any decision."

Article reports that Europe's private betting associations have criticised the European Commission's decision to delay launching legal action against gambling infringements, as tensions over the liberalisation of the sector were rising. The European Commission said that it was waiting for the results of a Swiss study commissioned to look at the economic impact of liberalising the European gambling industry.

• Primary Source

European Betting Association: Homepage http://www.eu-ba.org/

---