Gambling Law: Unnotified Portuguese provision not binding for bwin

Nov. 27, 2008 - PRLog -- ...an Advocate General made clear that the European Commission should have been notified of the expansion in the scope of the Portuguese monopoly to include the Internet.

As per the opinion of the Advocate General on the proceedings, pending with the European Court of Justice (which has put the Portuguese sports betting and lottery monopoly on trial), since the EC wasn't notified, the provision cannot be used against bwin and the Liga.

The opinion highlighted the special features of the Internet in terms of security. "In this regard, it must be pointed out that security in online gaming, due to the technical characteristics of the Internet as a sales channel, is much tighter than in offline gaming," as per the statement.

It further added that unlike traditional gaming, which continues to be largely anonymous today, licenced online gaming providers know their customers thanks to the mandatory registration. This makes all transactions transparent and traceable. In addition, this reliably ensures the prevention of money laundering, game manipulation or problematic gaming. "Contrary to the statement made in paragraph 271 of the opinion, it is not possible to place bets or play on credit at bwin."

bwin co-CEO Norbert Teufelberger believes that the expected decision in principle will ensure that the security aspects in the Internet are more strongly addressed.

He said that only a regulated online gaming market with a more diversified and attractive line-up of games than the one a monopoly can offer will create adequate security against the risks of a black market actually opening up the floodgates to crime.

In August 2005, bwin concluded a sponsoring agreement with LPTO for a period of four playing seasons. In view of Portuguese law, which grants SCML sole authority to negotiate sports betting, SCML filed a lawsuit against bwin and LPTO. bwin appealed based on the interpretation of Articles 43, 49 and 56 of the EU Treaty. The court entrusted with the case in Portugal referred the lawsuit to the ECJ, requesting it to clarify the questions of principle regarding compatibility of EU law with the SCML gaming monopoly.

Bullet Business are currently working on the 3rd Annual Legal Gaming in Europe Summit which will be taking place in London on January 26 – 27 2009. Full information can be found at www.bulletbusiness.com/legaleurope09.

For more details please contact Ben Satchwell at +44 (0)20 7375 7163 or email ben@bulletbusiness.com