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Arrest of bwin officials: The French Monopoly’s Swan Song?
The European Betting Association (EBA) expresses its shock at the arrest in France of two senior officials of bwin, a licensed and regulated company in various European Union (EU) Member States, listed in the Vienna Stock Exchange since March 2000 and a member of the EBA. In an operation calculated to attain maximum publicity, the French Authorities acting at the behest of the State Monopoly, Francaise des Jeux (FdJ), arrested two senior executives of bwin on 15th September 2006. The French Authorities claim that bwin is illegal in France.
This move goes to the opposite direction from the one recently taken by the EU, which was acting primarily on the provisions of the Treaty of the EU and on standing ECJ case law. Most recently, the Gambilli ruling [C-243/01, 6th November 2003] unequivacoally affirmed gambling as a service, a sector subject to the Freedom of Establishment (Article 43) and the Freedom to provide services (Article 49). These fundamental Freedoms can be restricted or prevented if, and only if, the National Authorities can prove that such limitations are the only feasible way of protecting the general interest (e.g. public order and public health). Market restrictions aimed at securing revenue for the public purse are not justified by any EU standard.
Acting on this premise, the European Commission has already begun to scrutinize several State Monopolies throughout the EU in the infringement proceedings launched on 4th April 2006. It is only a question of time before similar proceedings are launched against France, as complaints against FdJ and PMU have already been lodged with the European Commission by private EU operators.
Instead of taking heed of the above, FdJ is fighting tooth and nail to preserve its monopoly and expand its annual income of 8,9€ billion, as shown by 2005 figures. This income is sued to fund FdJ activities and development as well as the State coffers with a revenue of 2,33€ billion in 2004 alone. Little or none of FdJ’s revenue, however, goes to professional football clubs whose games are commercially exploited by FdJ.
“Why are professional football clubs in France prevented from reaping the benefits of private sponsorship as other European clubs do?”, asked Didier Dewyn, Secretary General of the EBA. “I see this maneuver as a provocation and the desperate last resort of a dying Monopoly”, Mr Dewyn continues.
Considering that at this moment two respectful EU businessmen are held in jail for providing their services in full consistency with the Internal Market provisions, the EBA calls for urgent action by the European Commission against the responsible French Authorities.