European gaming market: further important steps towards liberalisation

Wien (OTS) - Forecasts made by betandwin regarding regulatory
changes that will gradually liberalise the European sports betting
industry are apparently proving accurate. In the medium term, it
shall be permitted to private sports betting providers to advertise
and offer gaming products in any other EU member state provided they
hold a valid license in any one EU member country. From the point of
view of the sports betting industry, the ruling by the Court of
Justice of the European Communities (Case C-243/01) on the Gambelli
case (Italy) is of special importance. Pursuant to the ECJ decision,
all EU member states must ensure that providers are permitted to
offer the services they are licensed to provide in their respective
countries of origin in other EU countries, unless national
restrictions are justified on the grounds of public interest.

The Gambelli Case

In the Gambelli case (Italy), the Court of Justice of the European
Communities decided that Italian law restricted the freedom of
establishment, freedom to provide services, and the freedom of
receiving or using services offered by a service provider. On the
possibility of justifying such restrictions, the Court of Justice
stated that they might be justified only if necessary to protect the
consumer and public social order. A member state cannot give the
maintenance of public order as a reason for justifying restrictive
measures whilst at the same time encouraging participation in
lotteries, games of chance or betting with a view to ensuring a
revenue stream for public coffers.

National courts base adjudication on Court of Justice ruling

In Germany, for example, both the higher regional court in Munich
and the administrative court of Hessen simultaneously followed in the
last months the Gambelli case ruling by the Court of Justice in
proceedings against private betting providers. In particular, the
administrative court of Hessen estimates, the presumption is that the
extensive advertisement by state-owned lottery companies for oddset
sports betting is not intended to protect public social order, but
rather to finance the Soccer World Cup 2006 and off-sets budget
deficits.

Denmark faced with infringement proceedings pursuant to Article 226
of EU Treaty

Danish legal provisions of March 2003 restrict foreign providers
in the advertising and provision of sports betting. Based on the
information presently available, the Commission found that the
disputed Danish legal provisions probably restricted the freedom of
establishment and the cross-border provision of services. Now the EU
Commission is checking whether the such a ban is compatible with the
relevant provisions of the EU Treaty.

If the EU member states fail to react to the opinion of the EU
Commission, it will be left to the Commission's discretion to bring
such cases before the Court of Justice.

Steady implementation of measures initiated by betandwin

In view of the accelerated liberalisation of the European sports
betting market, the Co-CEOs of betandwin have actively pushed for an
association of Europe’s leading online betting providers in the form
of a non-profit organisation. The European Betting Association (EBA)
consists of a network of Europe’s top private-sector Internet
providers of sports betting. Whilst adhering to voluntary high
quality standards, the EBA has set itself the goal of lobbying for
fair and uniform market access regulations throughout the European
single market. betandwin will continue to do everything it can to
support the EBA’s activities in Brussels to further the best
interests of both customers and providers.

Rückfragehinweis:
Karin Klein, Corporate Communications
BETandWIN.com Interactive Entertainment AG
A-1010 Wien, Babenbergerstraße 9/17
Tel.: +43-1-585 60 44-260
mailto:investorrelations@betandwin.ag
http://www.betandwin.ag

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