EU Issues Warnings to Greece and the Netherlands on Gambling Barriers

The European Commission gave Greece and the Netherlands a final warning before court action over restrictions in their gaming markets on Thursday, the latest move in a push by Brussels to boost competition.

The countries have two months to reply. Failure to do so or a response deemed inadequate could mean they face the European Union's top court, the European Court of Justice.

"The complaints against Greece concern the fact that providers lawfully licensed in another member state are not allowed to provide sports betting services and other games of chance in Greece," the EU executive said in a statement.

"The Dutch investigation relates only to provision and promotion of sports betting services," the Commission said.

EU Internal Market Commissioner Charlie McCreevy is overseeing legal action against about 10 of the EU's 27 member states to crack down on national hurdles to competition from gaming firms based elsewhere in the bloc.

Some EU states have said curbs on competition are needed to cut addiction to gambling. But the Commission said that, in the case of Greece and the Netherlands, the introduction of "new addictive games, intensive and increasing advertising and absence of concrete measures against gambling addiction contradicted that argument".

Dutch state lottery De Lotto said there are no harmonised EU rules on sports betting and that the Commission's decision was prompted by pressure from primarily UK-based online bookmakers.

"The European Commission seems to have set its sights on one big, pan-European betting market," De Lotto Chief Executive Officer Tjeerd Veenstra said.

There was no support for creating a pan-EU gaming market and the Dutch system keeps social costs arising from addiction and crime under control, Veenstra said.

The ECJ has ruled that EU states can restrict gaming but only in a proportionate and non-discriminatory way. Greek gaming company OPAP is listed on the Athens stock exchange and is an effective monopoly in its home market but competes with other operators in Cyprus.

Stanleybet International , a UK-based gaming firm, is trying to set up shop in Greece and welcomed the decision.

"Today's decision is another blow to member states who do not wish to play their part," managing director John Whittaker said. His company urged McCreevy to pursue actions against Denmark, Hungary and Finland and take them to the ECJ.

The European Gaming and Betting Association said national gaming legislation that does not serve "any genuine consumer protection or public order interest has no future".

The EGBA said the warning from Brussels coincided with the Dutch government's plans to issue a three-year exclusive online gaming licence to state operator Holland Casino.

The Dutch government is also looking to force financial institutions to refuse payment transactions to and from EU-licensed online gaming and betting operators, the EGBA said.

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