EU Rules Portugese Online Gambling Monopoly OK
The European Court of Justice says the online gambling monopoly run by Portugal is acceptable, because the system is in place to combat fraud and protect the public. The court has cited several other countries for devising Internet gambling regulations that primarily are in place to prevent competition, but had allowed that restrictions could exist within EU rules, as long as the purpose was to guard the citizenry.The case that came before the court involved a disagreement based on online casino operator bwin attempting to sponsor a Portugese soccer club, Liga. The resulting bwin advertising on Liga uniforms and websites caused a state charity that had monopoly rights to electronic betting as well as lottery gambling to fine both the team and the online gambling company.
The court had said in previous rulings that free trade can be restricted by the state if it is necessary to properly protect the public. It invoked that standard here, although it did not clearly delineate the difference between the Portugese system and those online gambling regulations it had rejected in past cases.
"Games of chance involve a high risk of criminal activity or fraud, in view of the scale of the earnings and the potential winnings on offer to players," stated the court in its ruling.
A spokesman for bwin released a statement saying, "It is difficult for us to understand the rationale that crime is more difficult off-line than online."
Some worries that the ruling may mean a shift in policy by the EU, but the decision is consistent with the past rulings of the court. Other countries were ordered to reconsider their gaming policies because they were less effective at dealing with social dangers and more about controlling revenue.
