FURTHER DOUBT THROWN ON COMPLIANCE OF ITALY’S SPORTS BETTING LAWS WITH EC LAW – ITALIAN SUPREME COURT REFERS AGAIN TO ECJ, Feb 03, 2010

• > Cassazione's ruling indicates serious doubt about the compliance with European law of the 2006 Bersani sports betting licences, pointing to substantial uncertainties of interpretation.

• > To end this long-running controversy, Cassazione adjourned existing legal actions and referred the case to the European Court of Justice for guidance to arrive at a final decision.

• > After over 10 years of disruption to its business, Stanleybet is acknowledged as uniquely legal among foreign operators.

3 February 2010 - Italy's Supreme Criminal Court ("Cassazione") has thrown into question the regulatory framework that protects companies which were awarded licences under the Bersani tender in 2006 and has referred the case to the European Court of Justice (ECJ) for clarification.

John Whittaker, CEO Stanleybet, Europe's leading cross-border retail sports betting company, said "We have long been concerned about the erroneous perception that Italy's legal framework for sports betting, as a result of conducting the Bersani tender in 2006, was open and compliant with EC law.  We welcome this decision by Cassazione to adjourn legal actions and to refer to the European Court of Justice to seek a final resolution.  Other countries seeking a model on which to base their laws must look elsewhere than Italy.  

"We are particularly delighted that after disruptions going back over 10 years, Cassazione recognises that our business has a unique legal position, quite distinct from other foreign companies which operate in Italy without permission and which have sought to take advantage of Stanleybet's efforts to achieve justice over the years." 

The Court has taken the view that serious uncertainties of interpretation still remain about the breadth of freedoms of establishment and provision of cross-border services (Articles 49 and 56 TFUE).  It questions whether those freedoms can be restricted by a domestic tender system issuing a number of concessions, supported by police licences, in a situation where:

• § holders of previously-issued concessions are protected although new entrants were denied access to the market

• § competition is restricted because new concessions are prevented from locating premises within a certain distance of existing concessions

a concession can be forfeited with a consequent demand against financial guarantees and bonds if the concession holder was also engaging in cross border activities similar to those operated under the concession.

Swedish and Austrian cases to be heard by ECJ, Dec 20, 2009

The European Court of Justice has confirmed that it will examine Austrian and Swedish rules on online gambling in the New Year on 14 January is separate oral hearings.

The Austrian case - number C-64/08 - also relates to the freedom to provide services under European law, and in particular Articles 43 and 49 of the EC Treaty. The case was referred to the ECJ by the Austrian Court in Linz, who sought clarification on whether the country's two current gambling licensing regimes are in violation of the EU's competition legislation. If that is the case, then the national court wants to know if current Austrian gambling legislation can be legitimately used to exclude gambling operators based in other Member States. (Euromat)

Der Spiegel highlights role of illegal gambling rings in match-fixing, Dec 14, 2009

Investigative report in Der Spiegel highlights role of illegal gambling rings surrounding match-fixing scandals

An investigative report published in German weekly Der Spiegel sheds light on the reality behind the match fixing-scandals which have emerged in recent weeks across Europe. The article looks at how illegal gambling networks, whose influence spreads across the globe, damage the reputation of well-established legal operators by undermining their legality and the image of the sports betting industry.

A gambling ring led by Ante Sapina has come under investigation for alleged match-fixing in a series of sporting matches, including attempts to manipulate a World Cup qualifying match between Turkey and Bosnia Herzegovina.

According to investigators, "based on the results of telecommunications surveillance, there is evidence that cash flows [resulting from the ring's alleged match-fixing] could be in the millions". Until January 2009, investigators tracked balances amounting to €3.5 million originating from Mr Sapina's accounts in Asia alone.

The report also highlights the unconventional methods used to ensure the results required by the gambling rings in sporting competitions, such as bribing a cook to stir drugs into the lunch of a football team designed to reduce their performance.