European Court of Justice has lifted a barrier that was used by Italy to keep foreign gambling competitors out of the competition. State-run gambling companies in Italy may have to face some challenges to its business monopolies.
The European Court of Justice in Luxembourg ruled that Italy couldn’t use criminal law to stop gaming companies that are licensed in other EU nations.
Companies like Ladbrokes Plc & others have already criticized State monopolies in France, Germany and other countries. They have blocked cross-border online gaming business of these companies.
Lode Van Den Hende, a lawyer in the Brussels office of Herbert Smith commented,' This is a step further toward a liberalization of the European gambling markets. This is very good now for the gaming operators. If this had gone against them they could have closed shop.
Some operators based in Italy faced criminal charges, as they would accept online bet with a UK firm named Stanley. Stanley did not have any local gaming license from Italy. European Court of Justice restricted the use of criminal law in particular cases where foreign betting firms were declined the necessary license by the country. UK firm Stanley was such an example.
11-judge panel of the court said,” The Italian criminal penalties for the collecting of bets by intermediaries acting on behalf of foreign companies are contrary to EU rules”.
The UK based firm commented this ruling as a 'landmark' to put pressure on governments and the European Commission. Meanwhile, share market responded positively following the rule. There was considerable rise in shares in some of the biggest UK gambling companies.
March 11, 2007, 4:38 pm (4 years ago)
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