European Court Rules on Gambling Monopolies

October 23 - Last week an advocate general of the European Court said that European gambling monopolies can be legal, which means that it has 'left the door open' for European countries that want to retain their gambling monopolies.

However, according to a non-binding statement made by the advocate general, the aforementioned gambling monopolies 'must not become greedy money-making machines'. It seems that gambling monopolies are only acceptable if their goal is to protect consumers and maintain public law and order.

In the case of Portugal, its domestic courts still need to determine whether the rules live up to European Union (EU) objectives. The advocate general's response was reportedly made after a Portuguese court approached the EU as it was unsure about how to handle various gambling related complaints.

It seems that the complaints were regarding the Portuguese soccer league and a particular online gambling company, who were both fined for illegally offering and marketing bets over the Internet.

According to the advocate general, an EU member country can only be forced to liberalize its online gambling within its border provided 'the country treats gaming and gambling as an economic activity to ensure maximum profit.'

In the case of Denmark, its situation is very similar to Portugal's because it also boasts a state-owned and run gambling monopoly. Accordingly the EU commission has reportedly been considering launching a case against the Denmark regarding the issue.

Meanwhile, Danish Minister for Taxation Kristian Jensen has suggested publicly that 'the issue of a gambling monopoly will be addressed eventually'. While a statement from an advocate general of the European Court is not binding, is often followed by action in national courts.

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